Consolidating student loan drawbacks
As soon as a new lender approves the refinance, your repayment process begins right away.With many student loans, you can delay payments while you are still in school or when you enter a graduate program.For example, Earnest approves individuals for student loan refinancing by looking at several financial and personal points, not just the applicant’s credit score and income.If you feel more comfortable with private lenders that have actual branches/locations, Citizen’s Bank offers competitive interest rates, no fees, and APR discounts.If you are refinancing to lower your interest rate, then you will be saving money.
Another perk of refinancing your loan is that you might be eligible to refinance the loan on your own.
Student loan debt keeps rising, and according to the latest findings, the Class of 2016 left school with an average of ,172 in debt, up 6% from the year before.
This figure does not even look at the student loans parents took out to help their child’s college costs. It is common for graduates to find themselves in a financial hard place when it comes to repaying their loans.
If your current loan has a grace period still intact, wait until that period is over before starting the refinance option.
When you refinance your loan, you can choose how long you want your loan, as well as if you want a fixed or variable rate.