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Student Loan Refinance – Paying off student loans can be a painful undertaking, especially because of the high interest rates.,
Any delay in the loan repayment often results in increased interest from the borrowed amount.
However, due to the high cost of an education and the ever-rising cost of living it is almost impossible for students to survive without Student Loan Refinance.
Student Loan Refinance Options
It is partly due to this factor that the concept of student loans refinance was created. Through this plan the lender buys of your loan from the previous lender. And giving way for you to take up a different loan at friendlier rates.
What this concept simply does is to consolidate all your loans into a single payment plan.
To have positive outcome such as lowering the interest rates, having to pay a single debt and reducing the amount of time needed to pay the loan. Consolidate student loans is merging multiple federal loans into a single loan thereby having only a single loan to pay with decreased interest rates and also have much longer time to pay back your loan. Unlike refinancing, consolidation does not help you save money.
However much these two might sound beneficial to the students, it is imperative to know that not every student qualifies for loan refinancing and its acquisition automatically denies you the eligibility certain federal protection such as student-loan-forgiveness.
Student Loan Refinance & Students Loan Consolidation
When it comes to student loans consolidation, students are able to consolidate all their loans into one fixed rate. This is meant to assist the student in paying their loans faster. On the other hand, refinancing offers more reprieve.
This is because once your loans are refinanced, you are offered a lower and friendlier interest rate allowing you to save from loan rates. Whereas this plan comes with a number of benefits, it does not cover all students that might be in need of the service.
There are striking differences between student loan financing and student loan consolidation. For instance, private students do not qualify for consolidation and federal scholars lose most of their benefits, including loan forgiveness if they go the refinancing route.
Conclusion Of Students Loans Refinancing
Today, there are many benefits for students when they use either consolidation or refinancing options. However, students gain more benefits through refinance than consolidation, which only recognizes federal loan seekers and does not offer savings.
In essence, before you decide on the route you would want to take consider the perks vis-avis the issues. This is the only assure way that you can select the type of product offering that suits you.
Refinancing student loan basically offers students who find it hard to handle paying off multiple debts the option of combining both your federal loan and a private student loan.
Best Banks to Consolidate and Refinance Student Loans
Here are some banking institutions that offer these and other services to students with their interest rates.
- Citizens bank: Federal, private, and personal loan, Loan refinancing and consolidation, Fixed and variable interest rates of 3.35%+ and 2.79%+respectively.
- College Ave: Private, federal and Parent loan. Loan refinancing and consolidation. Fixed and variable interest rates of 4.65%+ and Variable: 4.13%+ respectively
- Earnest: Private, federal and Parent loan. Loan refinancing and consolidation. Variable Rates starting at 2.2% and Fixed Rates starting at 3.5%
- SoFI: Private, federal and Parent loan, Loan refinancing and consolidation, Variable Rates starting at 2.2% and Fixed Rates starting at 3.5%
- Commonbond: Federal, private, and Parent loan, Loan refinancing and consolidation, Fixed rates from 3.50% and Variable starting at 2.23%
Benefits of Consolidation and Refinancing a Loan
- Saving some cash.
- Having a single loan to pay.
- Having favorable interest rates.