Should You Refinance Consolidated Student Loans?Those student loans seemed like a good idea when you took them but now you are out of school and dealing with the auto loan you took to buy that car, credit card debt, rent, and trying to have a life. Should you refinance consolidated student loans in order to save a few dollars a month. When you consolidated the loans it offered you a lower monthly payment but now interest rates are lower and you are wondering if you could refinance this debt and save a bit more. Technically, refinancing is not supposed to be an option for federal funded student loans. Other types of loans such as mortgages are not the same as student loans so the option for refinance is almost always available for those types of loans. In order to refinance consolidated student loans a person may need to find some loop holes in order to get it done. If the person is still a student they may be able to re-consolidate at a lower rate or if they have a loan that has not been consolidated they could re-consolidate in order to incorporate that loan. The main requirement is that the person be a student at the time. For some there may be the option to refinance consolidated student loans thru a private lending institution. Converting the debt to a personal loan or paying it of with a lower rate equity loan. In order to do this the person would have to have good credit, be making a good salary, and prove they are able to make the payments while taking into account their other monthly debts. Making the decision to go to a private lender for a new type of loan really should be based on the interest rates that are available and if the fees that would be incurred would be worth paying over the long term. Once debt has reared its ugly head, managing it becomes the goal. Should you refinance consolidated student loans? If you can qualify to do so and if the amount you will save will loosen your budget then maybe you should look into it. How much longer do you have to repay you current loans and what would the term be if you were to refinance? Gain as much information as possible before moving forward and do not be sold simply because of an attractive interest rate. Make the best possible choice for your situation. |