If you are one of the millions of college graduates struggling with student loan debt, you might be considering an option to refinance. Even though community college is often more affordable than a traditional four-year university, school is never cheap. Depending on your debt and how much you can pay, you might be able to consolidate and/or refinance your loans to make your payments more affordable – keep reading to learn more.
Save Money by Refinancing Your Student Loans
Refinancing your loans means that you will be repaying your existing debt by taking on a new loan with new terms, often from a new creditor. Two of the most common options for refinancing your student loans are private loan refinancing and federal loan consolidation. Again, it depends on the type of loans you have and how much debt you have as well. If you can refinance through a private lender, you might be able to get a lower interest rate. At the same time, federal loan consolidation is usually a good option for people who are looking to simplify the repayment process by lumping multiple loans into a single payment plan. Loan consolidation may or may not give you a better interest rate.
If you’re thinking about refinancing your community college student loans, there are a few questions you should ask yourself first:
- Why are you refinancing?
- What are your options?
- What rate can I get?
The first question about why you are refinancing is very important – your goals
