Debt, Direct Loan Consolidation, Featured, Federal Student Loan Refinancing, Private Student Loan Consolidation, Private Student Loan Refinancing, Student Loan Consolidation, Student Loan Consolidation Advice If you’re feeling overwhelmed by your student loans, you can take comfort in the fact that you’re not alone: Over 44 million Americans have student loan debt today.
Here are some reasons you might consider refinancing instead: 1. When you refinance, lenders will offer you different loan terms.You’ll pay more in interest over the length of your new repayment term, but an income-driven repayment plan can make keeping up with your payments possible on a small salary. If you have older federal loans, you may have some with variable interest rates.Plus, if you have debt left over when the repayment term is up, it will be forgiven (but taxed as income). That means the interest and monthly payment can change according to market conditions.For instance, you might be able to get a much lower interest rate and shorten your repayment term.Although consolidating won’t save you money, it can make repaying your loans easier.
Use our calculator to see if refinancing can save you money. That means your interest charges could increase over time. If you’re on a tight budget and your loan payments eat up a big chunk of your salary, refinancing can help.