Student Loan Refinancing Services Review
Why Refinance a Student Loan?
Student loan programs are being updated, and some banks have announced new student loan refinancing options. There are a number of reasons you should consider student loan refinancing. Some student loans have variable interest rates which could fluctuate over time, and a fixed-rate loan could take away some of the guesswork of repayment. Other loans, such as Darien Rowayton Bank, SoFi and Alliant Credit Union, offer the convenience of making a single payment instead of requiring multiple payments each month.
Convenience and savings are the two biggest motivators. If you’re shopping for student loan refinancing options, there are a few new options available to you.
Student Loan Refinance Package: What to Look For
You should look for a loan refinancing program that offers interest rates that are lower than what you’re currently paying with terms that are helpful to you. You will also want to read the fine print to make sure you’re not incurring extra costs or fees in the refinancing package.
Federal Student Aid
You should check with the Federal Student Aid website first to read up on what’s new with federal loan refinancing. This is a great place to start, as there is plenty of information available that will help you research refinancing options and know what to look for. Plus, because it’s the federal government, and not a commercial bank, the government might be able to offer you the best interest rates.
A few commercial banks are offering formalized student loan refinancing programs. Your best bet is to start at your current bank and ask if they have a program. From there, check out a few other banks that have formal student loan refinancing options on offer. This will give you a set of options to compare and contrast.
Again, look closely for hidden fees and ask question about interest rates and how they might impact your loan repayment. Finally, do the math. Make sure that refinancing is an option that delivers you a lower cost overall, and if it’s convenience you’re after, make sure the cost justifies the convenience factor.
Some credit unions are also offering student loan consolidation programs, especially credit unions associated with universities. You can work with your credit union to see if they have a program or you can shop around for a credit union that offers one. If you qualify to do business with the credit union, you might find slightly lower rates and additional perks, like higher savings rates for associated accounts.
Refinancing your student loan could be a helpful way to stay on track with payments while reducing overall costs. The federal government is releasing programs that can help you refinance your loans. You can watch for those programs as they take off, as they are still new. The best method you can take to find the best deal is to do your research, ask plenty of questions and make a decision that works for you.