Student Loans After College

2007-03-08 10:33:40

( Financial )



Student loan refinancing is beneficial to most students immediately after graduation. Student loan consolidation significantly reduces your monthly payment and it also locks in your interest rate so you do not have to worry about rising interest rates in the future. It also simplifies your finances because you only have to make one single payment to pay off multiple student loans.

Student loan refinancing allows you to stretch your repayment period up to 30 years depending on the amount you owe. One big advantage of extending your repayment period is that you can save more money monthly to pay off your other loans like car and health insurance and other living expenses.

Most lending institutions offer online or paper-based applications for student loan refinancing. They can send your application via email or via postal mail depending on your preference. Once you have received it, go through each and every item of your application. Make sure all the details stated are correct. Signing any document verifies that all information stated in that particular document is accurate. This is especially true when getting any financial product like loans.

Once you have sent your application, your lending institution will request total pay-off statements from your current loan holders. This statement basically contains the total amount you still owe to date. It is imperative that you continue your monthly payments until you receive notification from your new lending institution. Getting and processing pay-off statements can take as much as 60 days. It is important that your accounts stay current to prevent any more problems in processing.

After the pay-off process has been completed, your new lending institution will send you your new repayment schedule and other pertinent information regarding your student loans. Your credit report will now show that your old student loans are fully replaid and the number of loans you have is reduced.


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