When It Makes Sense to Refinance Your Student Loans, and When It Doesnt

When It Makes Sense to Refinance Your Student Loans, and When It Doesnt

More than six in ten (62%) Americans who graduated college in 2019 have student loan debt and owe an average of $28,950, according to an report released by The Institute for College Access and Success, a nonprofit group.

It’s not all bad news: Federal student loan interest rates have dipped below 3% – and some private student loan rates are even lower. This could make refinancing student loans an attractive option for many.

The best interest rates are available only to borrowers with strong credit profiles and high incomes. And depending on the type of student loans you have, refinancing could be a bad move.

Right now, all payments, interest, and collections have been suspended for government-held federal student loans. The forbearance and interest freeze for federally held student loans is currently scheduled to end on . So http://www.badcreditloanshelp.net/payday-loans-az until then, there’s little reason to consider refinancing those types of loans. You’re never going to beat a 0% interest rate, so certainly for the time being at least, there’s no reason to [refinance federally held student loans], Adam S. Minsky Esq., who is an attorney specializing in student loans.

When Student Loan Refinancing Doesn’t Make Sense

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I’m very cautious about recommending that folks refinance any federal loans to a private loan because of what you’re giving up, Minsky says.

There are a number of benefits and protections federal student loans may qualify for: death or disability discharge, default resolution, and deferment or forbearance options. Pokračovat ve čtení „When It Makes Sense to Refinance Your Student Loans, and When It Doesnt“