Student Loan Information

2007-03-08 10:33:40

( Financial )



The perfect time for student loan refinancing is between the time you have graduated from college and the time when your grace period ends. If you refinance student loans between these times, you can take advantage of lower in-school interest rates.

Student loan refinancing requires you to have all your applicable paperwork complete and approved before your grace period end and repayment begins. A minor disadvantage in college loan consolidation is that your grace period ends once your refinancing is approved. If you have been paying your student loans for quite awhile and you just want to consolidate them, you can do this anytime.

To get the best interest rate, it is advisable to approach your potential lending institution personally, as some of the calculations may get confusing. You also have to remember that the federal government determines the interest rates per year and they usually change on July 1st.

Student loan refinancing also allows you to consolidate your outstanding student loans with your spouse’s. You will both be responsible for your debts. If your marriage ends in divorce and your spouse fail to pay his or her part of the loan, you will be liable for both your debts.

You do not have to worry if some of your student loans have interest rate subsidies. Student loan consolidations do not nullify this benefit. Subsidized and non-subsidized loans are separated even after consolidation.

To refinance student loans, you can apply online or visit your nearest student loan assistance center. You can even apply by phone in some cases. Once you have completed your paperwork, go through the documents and check its accuracy before you sign it. Signing any document verifies all information stated in your paperwork is true. Once your paperwork has been processed, you will receive notification as well as a new repayment schedule from your new lending institution.


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