How to Refinance Student Loans

Student Loan Help

How to Refinance Student Loans 

Graduating can be a trying time in a person’s life; whether the individual is in his early twenties or late fifties, he will struggle with the same life monsters as everyone else. Will I get a job? Should I try to further my education even more?

How am I going to manage my student loan payments? Although there are no easy answers to the two former questions, there is plenty of help in regards to the latter. Since there has been recent congressional changes in regards to lending practices, it much easier now more than ever to manage your financial future. Deciding to refinance student loans can be a challenging task to accomplish, but with a little research and perseverance any borrower can learn to aptly manage his educational loans.

Should I Refinance Student Loans?

Before jumping head first into the refinancing waters, one should consider if this step is the best for his situation. Many people only have a couple of loans with decently low interest rates. If you are not having trouble making your monthly payments and aren’t planning on making any major life changes (i.e. starting a family, changing careers, etc.), then most likely for you to refinance student loans would be an unwise decision. However, if you are having trouble meeting your installment minimums, have multiple loans, or have high-interest rates, then refinancing is a wonderful option to help ease your financial troubles.

Determine the Loan Types

Most borrowers have loans from several different lenders; to get started, one must see if he has private, federal, or both types of loans. Depending upon the type of credit, this will determine how best to refinance student loans and get the most benefits out of the process at the same time.

Federal Loans

Federal loans are typically the easiest types of loans to refinance. Whether the money came from a private creditor or the government itself, use the Federal Direct Consolidation Loan program to refinance or consolidate these under one loan. To refinance student loans under this program allows the borrower more control over their debt by offering flexible repayment schedules. Fortunately, this step is a fairly easy process and can be quickly resolved so that the borrower can reap the benefits in a timely manner.

Private Creditors

Unfortunately, private loans are less than ideal in today’s market, but if a borrower happens to have a few private creditors he still has a couple of solid options to refinance student loans. Refinancing this type of loan does require a bit more effort; nevertheless great benefits can result from your hard work and diligence. There are only a handful of lenders offering refinancing and consolidation services: Chase, Wells Fargo, and Student Loan Network. Contact each of these creditors to determine their eligibility requirements, terms, and conditions.

Should I Refinance Student Loans?

Before jumping head first into the refinancing waters, one should consider if this step is the best for his situation. Many people only have a couple of loans with decently low interest rates. If you are not having trouble making your monthly payments and aren’t planning on making any major life changes (i.e. starting a family, changing careers, etc.), then most likely for you to refinance student loans would be an unwise decision. However, if you are having trouble meeting your installment minimums, have multiple loans, or have high-interest rates, then refinancing is a wonderful option to help ease your financial troubles.

Determine the Loan Types

Most borrowers have loans from several different lenders; to get started, one must see if he has private, federal, or both types of loans. Depending upon the type of credit, this will determine how best to refinance student loans and get the most benefits out of the process at the same time.

Federal Loans

Federal loans are typically the easiest types of loans to refinance. Whether the money came from a private creditor or the government itself, use the Federal Direct Consolidation Loan program to refinance or consolidate these under one loan. To refinance student loans under this program allows the borrower more control over their debt by offering flexible repayment schedules. Fortunately, this step is a fairly easy process and can be quickly resolved so that the borrower can reap the benefits in a timely manner.

Private Creditors

Unfortunately, private loans are less than ideal in today’s market, but if a borrower happens to have a few private creditors he still has a couple of solid options to refinance student loans. Refinancing this type of loan does require a bit more effort; nevertheless great benefits can result from your hard work and diligence. There are only a handful of lenders offering refinancing and consolidation services: Chase, Wells Fargo, and Student Loan Network. Contact each of these creditors to determine their eligibility requirements, terms, and conditions.

Shop smart; each company will have their own set of fees associated with different options to refinance student loans. Also, be aware that your FICO credit score will have a significant influence on whether you get the loan and what your interest rate will be. Furthermore, note that there aren’t any fixed rates on consolidated private loans; be prepared to discuss in detail what benchmarks will dictate your loan rate.

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