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Student Loan Refinancing

Nathaniel Said:

Student Loan?

We Answered:

14.75% ? uau. You need a loan consolidation.
I found interesting information about your answer & options here. Goodhttp://all-debt-consolidation-loan.blogs… luck!

Patrick Said:

Can you refinance a student loan before repayment begins?

We Answered:

Yes. However, check the terms. If you've graduated, the repayment can begin immediately and you will lose the grace period before repayment begins. Make sure you understand when you will have to begin repaying.

Robin Said:

I am considering refinancing my mortgage and have an opportunity to take cash. Should I pay off student loan?

We Answered:

Well, your student loan is probably for a shorter term, most likely 10 years, so even though the interest rate on it is lower your payment is probably larger than if you had a higher interest rate 30 year loan. So, you have a couple of things you will want to consider.

First, there are certain benefits to having a student loan since there are instances where you can defer your payments. If you have a Stafford (most common) or Perkins loan then principal and interest payments may be deferred while you are:

* Attending school at least halftime.
* Unemployed (up to three years).
* Studying in an approved graduate fellowship or rehabilitation program for the disabled.
* Experiencing economic hardship (up to three years).

The downfall to keeping the student loan is the higher near-term payments that may actually cause you hardship.

Second, if you take the cash out on a home refinancing then you will be paying a higher interest rate and, thus, more interest over the life of the loan. But, you will have lower payment amounts on that portion of your loan which can ease any financial burden you have now or free up cash for other things (savings, investments, frivolous spending). Additionally, it is assumed and expected that as you go further in your working life you will make more money down the road which will make those payments less and less of a burden. The biggest downfall with this option, however, is not having the option to defer the payment if you go back to school or have a financial hardship.

So, what should you do? Well, that's ultimately your decision. There are so many other factors to consider. If I was you, I would probably wrap the loan into my mortgage to free up cash now that I would then save, putting most of it in a money market account or laddered CDs (what they call it when you take out a bunch of CDs with different maturity dates i.e. 3 mths, 6 mths, 9 mths, 1 year, etc). That way if anything did go wrong I would have a reserve fund to pay my bills and see me through any hardship. This way I would have reserves to pay my mortgage (including my wrapped in student loan) and any other bills I might have avoiding foreclosure and perhaps bankruptcy.

Ah, speaking of bankruptcy, if you ever did have to file then a student loan cannot be discharged (meaning that you will still owe on that loan post bankruptcy) but other types of loans can be discharged.

Lastly, if your student loan has been consolidated and is now over a 30 year term at 3.65% fixed then ignore the above advice and don't pay it off.

Hope this helps

Tommy Said:

I am looking to refinance my student loan. Any ideas of what company to go through?

We Answered:

Are you just making the minimum payment on the loan? When I got out of college I had a student loan. Each month I would pay an additional amount. In the memo section of check I would write $50 towards principal only. Also on the payment slips there should be a place to put the extra payments. Remember the extra payment pays in two ways. It cuts down the principal owed next month but will also increase the amount that the regular payment pays down the debt next month. Each month that amount will grow thereby paying the loan off faster.
Keep making the payments on time and the extra as this builds good credit scores.

Allan Said:

Is refinancing your student loans a good idea?

We Answered:

Yes if your payments and interest rate is loweredd and it doesn't it is not expensive.

You should look into refinancing only if the above is true.

The advantages is that you would make lower monthly payments, though it might be spread over a longer period of time. If you can keep the same time frame for paying the loan off with lower payments that would be better.

The disadvantage is if you don't refinance to a lower rate and lowere payment you will continue to pay the same monthly payment as you are now which might be higher unless you look into the possibility of refinancing the loan.

You might try this link and see if they can offer you a better deal.

I hope this has been of some use to you, good luck.


Patsy Said:

Best way to refinance the student loan?

We Answered:

Typically lenders won't do a refinance for any amount less than $7,500, it's just too costly for them to make sense.

Contact the current lender to see if the offer any type of rate reduction program. Some lenders offer a discount if you allow them to auto deduct the payment from your checking account, also if you have a good payment history you may get a discount for that.

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