Before you decide to refinance your federal student loans into a private refinance loan, be sure to consider this drawback: You may be giving up some federal student loan benefits that are important to you.
One of the key benefits of refinancing your private student loans is payment relief.
A private refinance loan can combine existing federal student loans and/or private student loans into a new, single loan.
Offered by banks, credit unions, and other financial institutions, a private refinance loan can reduce the pressure on your budget, making it easier to manage your education debt.
Visit Student to see which plan is best for you IMPORTANT: Once approved, each year you will need to update your income information and we encourage you to re-certify your marital status and family size.
The monthly payment amount calculated uses a formula set by the federal government.
For some of the plans, married borrowers may also be able to include their spouse’s eligible federal loans in the formula depending on tax filing status.
When it becomes more affordable, you can make larger payments to pay off your refinance loan faster and save money on interest.
This table shows the monthly payment reduction resulting from refinancing federal and/or private student loans into a 5% fixed rate private refinance loan.
When you consolidate multiple student loans or refinance a single student loan, you may receive a lower monthly payment with a reduced interest rate or an extended repayment term.