5 Steps to Consider Before Refinancing a Student Loan
In other articles, I have discussed the cost and debt implications of having a student loan. With the rising cost of college tuition, many young adults are getting in over their head and looking for answers once they graduate. Refinancing a student loan can give you lower monthly payments and allow you to build more savings or pay current debts off.
It‘s important to first ask yourself the ever important question of why you want to refinance your student loan. If you have a fixed rate Un-subsidized Stafford Loan, which is the most common type of federal loan for students, you need to be aware that interest rates for these loans have not changed.
Many refinancing options will switch you from a fixed rate loan to a variable rate loan. This means that the monthly payments on your loan may be smaller when you first refinance but could increase significantly over time. A variable rate loan could end up putting you in a worse position down the road. View full post…
How To Consolidate Student Loans – The Ultimate Guide
Have you been contacted to consolidate student loans? Each year, millions of individuals receive an offer such as this, and in fact, follow through with a refinance. However, this is not a “one size fits all” solution, and not every individual is the proper candidate for refinancing.
The general consensus is that you can lower the monthly payment when you consolidate student loans simply by increasing the number of years that the loan will be repaid. While that may be true, and because at the time, you’re just beginning your professional career, it may seem like a good idea. However, you really should consider the following three options.
Institutions that offer student loans have other options in addition to consolidation. Before you make a commitment to consolidate student loans, we highly recommend that you meet with your financial aid advisor with your university or college to discuss the matter. The advisor will more than likely recommend that you consult with your lender to find out what repayment options are available to you.
The Shocking Truth about Refinancing a Student Loan
Refinancing a student loan makes sense to us, but to the government who administers the loan program, it apparently doesn’t. Do you think that it has anything to do with the estimated profit of 51 BILLION dollars that the Education Department will make on student loans to students and parents this year?
Nah, they wouldn’t do that, would they? Does it matter also that student loan delinquencies are at an all time high? Many of these loans can’t be repaid because graduating college students can’t find a job due to the horrible economic conditions that still exist in many industries and states.
I realize that many of these same students have created this problem by choosing an educational path that they simply could never afford. By choosing a less expensive college as an example, or heaven forbid, attending a community college could have saved a lot of money. Working a part time job and paying as you go would save a lot as well.
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