Student Loans Refinancing Programs
Learn about student loans and find out the top student loans refinancing programs available for you today!
Every year, there are thousands of college students who rely on loans to help them finance their education. The majority of this money is doled out by the government. But for some, paying these loans can be very hard. That is why we created a comparison chart of the top student loans refinancing programs that will help you out with your student loan debts. Check out in this article.
What is Student Loan Refinancing Programs?
Student loan refinancing is the process of getting a new loan with a new interest rate. Basically, you can refinance your federal and private student loans which involves paying off your old loan by obtaining a new one. The new loan that you have purchased will have different repayment terms, and it should have a better interest rate.
Bear in mind that student loan refinancing is different than debt consolidation. A lot of people use these terms interchangeably. Debt consolidation basically refers to taking out a direct consolidation loan and combining all of your federal student loans into one loan with just only one interest rate.
While there are some undeniable similarities with refinancing, consolidation does not offer interest savings. Private student loan borrowers are not eligible for consolidation. And because of this, private loan borrowers opt to refinance.
One of the main benefits of refinancing is its potential to save thousands of dollars in interest over the life of the loan.
Should You Refinance Your Student Loans?
Student loan refinancing is one of the best ways to make payments for your student loan more manageable, but there are still important things to consider before you decide to refinance your student loans.
During the process of refinancing, you are basically applying for a private loan. So if you already have private loans, this might be an issue. But if you have federal student loans, you might have to give up your student loan protections like the following:
Income-Driven Plans – Once you refinance your federal student loans, you will not be eligible for income-drive plans like income-based repayment and pay as you earn anymore. You might think that you do not need these options right now, but if the times get tough, these income-driven plans could be a lifesaver.
Deferment and Forbearance – If you fall on the severe financial crisis, postponing your payments by the use of deferment or forbearance could be a great help. But if you refinance, you might have limited options to defer your loan payments.
Loan Forgiveness – Federal students loans have loan forgiveness options through the Public Service Loan Forgiveness program, Teacher Loan Forgiveness Program and many more. These loan forgiveness programs have their own set of terms and conditions, but it won’t be available for you if you refinance your loans.
Our Final Words
Student loan refinancing is an excellent option for students who are having a hard time paying their student loans. That is why we have these top student loans refinancing programs to give us more options on how to make our financial problems more manageable.
Refinancing your student loans is a great way to save money on your student loans, but it is still a significant financial decision. You might want to carefully study the costs and benefits of these student loan refinancing program and choose the right plan for you.
