College graduates often believe that they are stuck with their student loan debt, but there are refinancing options out there that can lower the interest rate on both government-backed and private student loans. These refinance options often let them cut their monthly payments significantly.
Many financial institutions will refinance student loans. These lenders may do more than simply offer lower interest rates, too. For example, the student loan lender College Ave Student Loans offers refinancing plans where graduates only pay the accumulating interest for two years after refinancing, plus they offer anywhere from five to fifteen year loans. Students with as little as $5,000 in loans qualify, and interest rates for a fixed loan are often below five percent.
Chief Executive Officer and Co-Founder Joseph DePaulo said the goal of the company is to help graduates refinance to meet their monthly budget and financial goals. In some cases, that means lowering the interest rate, while in others it means reducing the monthly payment to something the borrower can manage.
Experts do remind graduates that student loan options can't as easily be compared as mortgages or auto loans. The fact that some students have both private and federal loans can complicate matters. Federal loans have a number of benefits that private loans do not, and refinancing those loans means losing those benefits. Graduates should make certain they understand what they are giving up before they refinance.
Find out quickly at what rate you can refinance your student loan.