The Truth About Refinancing Student
by: Tripp Taylor
There are many students and graduates out there that
are struggling with paying for their student loans.
Often times, these people have heard of refinancing
student loans in order to make their payments lower and
more manageable. But before you consider refinancing
student loans, there are some things you should first
consider. Let this be your guide to the truth about
refinancing student loans.
Refinancing student loans often seems like a good
idea. In fact, refinancing student loans is a good idea,
if you use it to your advantage. We shall go over that
in a minute. First, you need to know that most student
loans are often of a variable percentage rate until the
rate is locked through means of a loan consolidation, or
by refinancing the loan. Currently, interest rates are
quite low so it is a good time for refinancing student
Refinancing student loans is only available to
students who have always paid their student loan bill on
time. If this does not sound like you, then I wish you
good luck trying to refinance your student loan.
Refinancing rates are often offered between one and two
percent lower than your original student loan rate. Most
refinancing rates will save you up to 60 percent. But
this is where the drawback is that most people don't
realize when they refinance their student loans.
The drawback is a hidden drawback that most people
never really see. I will explain. In order to get your
payment lower through refinancing, you are given a much
longer time period to pay the loan off. Instead of 5
years, it may be 20! This may sound good in the
beginning. At the time, it will leave you with extra
money that you may need for other bills. But in reality,
it just costs you more money in the end because you will
be paying interest much longer to the lender.
The smart way to do it is to pay more towards your
lower interest rate student loan bill that you have just
refinanced. This way it is cheaper and you will pay it
off much quicker than normal. But only do this if you
can afford it. If you refinanced your student loan
because you couldn't afford the payment, then just pay
it off as best you can at your own pace.
This is the truth about refinancing student loans.
This information can either be welcomed, or a hard thing
to hear. Try to use this information to help you when
you refinance student loans. If you utilize all of the
information at hand, you should be able to pay your loan
off faster and save some money.
|About The Author
Tripp Taylor offers expert advice and great tips regarding all aspects
concerning Student Loans. Get the information you
are seeking now by visiting