Student Loans

The amount you owe on student loans can have long-term impacts on your overall financial wellbeing. That's why managing your student loan repayment plan is critically important. When managed well, you could potentially save thousands of dollars over the life of your loan.

 

Should You Refinance Your Student Loans?

Refinancing means you replace your current loan(s), potentially at a lower interest rate. Lenders “buy out” your loan(s) from your existing loan servicers — both private and federal — and issue you a new loan equal to your outstanding student loan balance(s).

 

You Should Refinance Your Student Loan(s) If You:

  • Have high-interest rates
  • Have high monthly payments
  • Want to shorten, or lengthen, the term of the loan
  • Want to switch from a variable-rate to a fixed rate, (or vice versa)
  • Are a loan co-signer or borrower for someone else

Refinancing your student loans can mean potentially paying less over time with lower monthly payments and lower interest rates. Keep in mind, however, that when you refinance your student loans, you may be trading in your federal loan for a private loan.

Refinancing your student loan comes with pros and cons. Make sure that it's right for you:

 

 

PROS

  

 CONS
  • Single loan servicer
  • Potentially lower interest rate
  • Single payment
  • Can include both private and federal loans
  • More terms-of-loan options

 

 
  • No federal repayment options
  • Limited deferment or forbearance opportunities*
  • No loan forgiveness opportunity
  • Must qualify financially

 

Explore Your Options With Retirement Income Specialists:

There's no guarantee that any lender will offer you better terms on your student loans than you have now, but it's worth looking at refinancing simply because of the savings potential.

 

*Availability varies by lender.

 

 

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