Refinance Student Loan
Student loan refinancing is done to decrease the monthly student loan payments. Banks have student loan consolidation programs to facilitate this. A student may have federal student loans and private loans. The federal loans have a lower rate of interest than the private ones. The private loans are personal loans given with a surmise that the income will increase with education. While refinancing, if these two loans are mixed, then the student will have to pay more interest rate on the total principal. So, it is advisable to finance the two loans separately. The student loan rates change as per the lender and credit history. While refinancing, it must be confirmed that the history is helpful. A credit report must be studied to overcome problems. Then, rates of different lenders can be compared. The rates of refinancing federal student loans alter annually, generally on 1st July.
Lenders for student loan refinancing
Financialaid.com assists students with monetary help. It has an excellent customer service and highly trained student loan counselors guide the needy. The monthly payments can be decreased by 52%. The fixed interest rate may be as less as 6.75%. Early repayment is not charged with penalty. The loans can be consolidated to one easy payment. EstudentLoan.com is another lender. StudentLoan.com is a Citibank company. The Federal consolidation loan decreases the monthly student loan payments by half. There is one easy payment per month and a low fixed rate. No income or credit check is necessary. There is a 0.25% interest rate decrease as per a E-Z pay plan. The student loan account can be seen on the Internet. The Private consolidation loan is locked at a fixed rate or a variable rate. Only one payment is required per month. There exists a 0.25% interest rate reduction as per the E-Z pay plan. After the initial 48 successive monthly on-time payments, there is a 0.50% interest rate decrease. This loan account can also be seen on the net anytime. Each of these lenders have varying qualification needs. Most of them demand that currently the student must not have an active student loan or that there must be a minimum balance requirement.
Student loan payment
While refinancing, the monthly payments can be decreased by a lesser interest rate or a greater loan duration. Of these two methods, a low interest rate is the better option as the long term student loan debt gets reduced. In case the monthly payments are very large, the loan duration should be increased. Due to this, the span of repayment rises and the monthly payment becomes small. Long terms however imply high interest rate and consequently more interest payments. Overall, the student has to pay more, but it becomes less cumbersome.
Resources to refinance student loans
Difference between federal and private loans
The federal student loan can be consolidated if the student is not enrolled in school or is actively repaying the loan. Many consolidation companies need a minimum loan amount like $10,000. In case of federal student loans, the interest on the loan is tax deductable, the loan may be forgiven for some services or the payments can be postponed if the student returns to school. Private loans lack these benefits and may be secured or unsecured. They have to be repaid similar to other loans. Hence, it is recommended to consolidate federal and private loans simultaneously. Federal student loans have to be considered first and consolidated separately. The second step is to consolidate the private loans.
Lenders for student loan refinancing
Financialaid.com assists students with monetary help. It has an excellent customer service and highly trained student loan counselors guide the needy. The monthly payments can be decreased by 52%. The fixed interest rate may be as less as 6.75%. Early repayment is not charged with penalty. The loans can be consolidated to one easy payment. EstudentLoan.com is another lender. StudentLoan.com is a Citibank company. The Federal consolidation loan decreases the monthly student loan payments by half. There is one easy payment per month and a low fixed rate. No income or credit check is necessary. There is a 0.25% interest rate decrease as per a E-Z pay plan. The student loan account can be seen on the Internet. The Private consolidation loan is locked at a fixed rate or a variable rate. Only one payment is required per month. There exists a 0.25% interest rate reduction as per the E-Z pay plan. After the initial 48 successive monthly on-time payments, there is a 0.50% interest rate decrease. This loan account can also be seen on the net anytime. Each of these lenders have varying qualification needs. Most of them demand that currently the student must not have an active student loan or that there must be a minimum balance requirement.
Student loan payment
While refinancing, the monthly payments can be decreased by a lesser interest rate or a greater loan duration. Of these two methods, a low interest rate is the better option as the long term student loan debt gets reduced. In case the monthly payments are very large, the loan duration should be increased. Due to this, the span of repayment rises and the monthly payment becomes small. Long terms however imply high interest rate and consequently more interest payments. Overall, the student has to pay more, but it becomes less cumbersome.Resources to refinance student loans
- effects of student debt
- school loan consolidation
- consolidation recommendations of the University of Michigan Law School
- consolidating federal student loans
Difference between federal and private loans
The federal student loan can be consolidated if the student is not enrolled in school or is actively repaying the loan. Many consolidation companies need a minimum loan amount like $10,000. In case of federal student loans, the interest on the loan is tax deductable, the loan may be forgiven for some services or the payments can be postponed if the student returns to school. Private loans lack these benefits and may be secured or unsecured. They have to be repaid similar to other loans. Hence, it is recommended to consolidate federal and private loans simultaneously. Federal student loans have to be considered first and consolidated separately. The second step is to consolidate the private loans.
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