LET STUDENT LOAN REFINANCING EASE YOUR BURDENS TODAY

2007-03-08 10:33:40

( Financial )



Having trouble paying off your student loan? Many students and graduates are now looking at student loan refinancing to save hundreds of dollars on their student loans.

There are usually two types of student loans - federal student loans and private loans. Federal loans are financed by the US government and are based on your financial status. Private loans are backed by private firms and you have to personally apply for them. Federal loans usually have lower refinance interest rates than private loans.

The primary goal of student loan refinancing programs is to reduce your monthly payments. To do this, you either get a lower interest rate or extend the duration of your loan. The first option is more preferable, since you will save on your long-term debt. However, if you find your monthly payments hard to keep up with, you can choose the second student loan refinancing option. You might end up paying more, but you'll manage your monthly payments better.

There are many institutions that refinance student loans, but how do you find the best program for you? Here are some tips:

Consider consolidating your loans. It usually is a good idea to combine all your debts, so you only have to worry about one monthly payment amount. However, if you have availed of private and federal loans at the same time, combining them might cause you to incur higher refinance interest rates. You'll save more if you consolidate your federal loans and private loans separately.

Check your credit history. Like any refinancing program, it is easier for students who have good credit histories to get lower refinance interest rates. Sadly, it is very difficult to refinance with bad credit. Get an accurate credit report and fix any errors and problems before applying for student loan refinancing.

Do your research before agreeing to any student loan refinancing program. Interest rates vary from lender to lender, so shop around before you decide. You can make your inquiries in person, or check websites that can give you quotations from different lenders.

Make sure you are dealing with a credible lender. If a student loan refinancing deal sounds too good to be true, it probably is. Deal only with government certified institutions or established financial institutions. Ask friends and family which lender or website worked for them.

If you arm yourself with the right knowledge, student loan refinancing will really help you save on your student loan payments. Get started with student loan refinancing today, and look forward to a better, more comfortable future.


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