How to Refinance Student Loans to Save Money

Knowing how to refinance student loans can save a lot of money. Since student loans typically take decades to pay back, you have plenty of time to revisit the terms. Once all schooling is finished, your financial situation can change quickly. What may have seemed like a good term your freshman year may no longer make sense after graduation. Refinancing a student loan is simple. Here’s how you can look in to this.

Look At Options to Refinance Student Loans

The best way to pay your debt down faster and get a better rate is to consolidate the loan. Since most people have to take out several loans to pay for their entire education, consolidation makes sense. This process will pay off your existing student loans, and create a new loan for you to pay back. The new loan will have new terms and a new interest rate. Student loan consolidation doesn’t look bad on your credit, and it can give you terms that would make more sense for your current situation.

Individual Refinance

If you only have a single loan, or the terms on most of your loans are acceptable, you can look at refinancing just the one. If you want to know how to refinance student loans this way, it can still be done though a consolidation company. You will also still need to qualify for a new loan with this option. The interest rate may be lowered, and the repayment plan can be changed to suit your current needs.

Federal and Private Loans

If you have government student loans, those need to be dealt with through the government. They can’t be refinanced or consolidated with other private loans. However, you can refinance student loans by changing the terms of the federal loans. There are programs that can help you take extra time to pay, defer payments, and may even be able write off some of the debt based on the program you chose and the career you are in. This is the best way to refinance student loans.