Loan refinance

I am considering refinancing my student loans. Should I?

Everyone’s situation is so different that it is hard to answer. To see some scenario that you might identify with you can check out our scenarios here (link). However, to be brief, when thinking about if you want to refi you should consider:

• What is your monthly and total cost before and after refinancing?
• What benefits are you giving up by refinancing? There are many if you have federal loans, and even some private lender in-school loans have benefits.
• What benefits are you gaining by refinancing? There usually aren’t that many. You normally refi to save money, but in exchange give up you benefits.

What is the difference between refinancing and consolidating?

Refinancing:

• Can refinance private and public loans
• Can reduce your interest rate
• Can get variable and fixed rate loan
• Can change your term length
• Cannot still take advantage of Federal loan programs

Consolidating:

• Can consolidate public loans
• Cannot affect your interest rate
• Can only get fixed rate loans