A four-year degree can cost you the same as a luxury car. In some cases, like those who pursue graduate and doctorate degrees, education expenses can go into six-figures. 

While the government caps interest rates for student loans, the rates can still be quite high. The monthly obligation could cost you hundreds each month in interest fees. For example, rates for graduate students are twice as high as loans for undergraduates.

Paying Off Student Loans With Refinancing

Most students find out after graduation that they do not have one student loan but several small student loans, usually one for each semester. Paying the minimum on multiple loans often results in borrowers not making a dent in their principal, dragging out the term length and increase the interest charge amount. 

Additionally, you have to pay your federal student loans. Like other court-ordered garnishes, the government can take up to 15 percent of your paycheck to pay for your student loans. 

Student loan refinancing can help you: 

·      Save money each month and over the course of the loan.

·      Consolidate your loans, so you only have one monthly payment.

·      Change your federal loan into a private loan.

·      Stop wage garnishes. 

The best student loan refinance terms are those that income-based. Lenders consider your earnings, and your paycheck determines the monthly payment requirement.

You should consider refinancing your student loans when you have a stable income and fair to good credit. Lenders often offer lower rates to borrowers who have good to great credit. 

After your home and your student loans, your vehicle is usually your third largest purchase. It can also be one of the most expensive to maintain. 

By Admin