You finished school, you have loans to pay, and you need to know, ‘Can student loans be refinanced?’ You needed money to pay for tuition and other expenses while you attended school. When you graduate from the program you must begin the repayment of the money you borrowed. Sometimes this can be very difficult. You may not have landed the high paying job that your career field promised. You may not have a job at all. Still the loan payment must be made. If you file for bankruptcy you will not be able to discharge your student loans so you may have to opt for getting other financing and using the proceeds to discharge the debt. You will still have to make payments, but you may be able to get a better interest rate, defer payments, or lower payments by a longer repayment schedule. A fixed interest rate rather than one that can change will benefit you in your loan repayment.
There are other benefits in redoing the loan that you had for school expenses. You may have multiple loans with multiple payment dates and various terms. You can refinance your student loans into a consolidation note that will simplify your repayment terms and may even lower the multiple payments into one affordable payment. By consolidating the loans you will get a fixed interest rate, a fixed length of time to repay the note, and hopefully a lower monthly payment amount. You need to make sure that you have opted for the most favorable terms you can find when you refinance because you will only be allowed to do so one time.
Look at your options very, very carefully. You must be sure that you will get an interest rate that is fixed and that will not increase as the interest rates rise. Pick the terms of your repayment. When you consolidate you can lengthen the time for repayment from 10 years to 20 years. When you lengthen the repayment time you will lower your monthly payment. Keep in mind that you will also increase the amount of interest that you pay. Even though you have a low, fixed rate, when you tack an additional 10 years on the repayment terms you have increased the amount of interest that you will pay over time. It is your responsibility to ensure that the monies have been paid completely by the proceeds of the consolidation note. You will be responsible for making the monthly payment that you and the lender agreed upon when you refinanced your debt.
You can refinance your student loans and you can start by contacting the lender who initiated the loans. You current lender may have the best rates and you will have a history with them. The government offers a consolidation loan through a federal program. Make certain that you have all the information on your student loans available because you will be able to apply on line for the consolidation loan but you will have to fill in the information about your current loans. Again, remember that it is your responsibility to ensure that the original lender is repaid in full by the consolidation note.
There are private loans to students and not all loans are federal student loans. If you need to consolidate these loans you will have to follow a slightly different process. Again, your current lender is usually the place to start. Ask to be given a lower rate of interest. Ask about all your options. You may be able to take out a signature loan for the amount and extend the payment terms as well as lock in a new and lower rate of interest. Whether you have private loans or federal loans to pay your school expenses, you can refinance student loans.