Student loan debt keeps rising, and according to the latest findings, the Class of 2016 left school with an average of ,172 in debt, up 6% from the year before.This figure does not even look at the student loans parents took out to help their child’s college costs. It is common for graduates to find themselves in a financial hard place when it comes to repaying their loans.If you are refinancing to lower your interest rate, then you will be saving money.However, if you are refinancing the loan to obtain a longer loan, then be aware that while your monthly payments decrease, the amount of money you pay for the entire loan increases.As soon as a new lender approves the refinance, your repayment process begins right away.
If a graduate has a mix of federal and private loans, it is possible just to refinance the private loans.
Refinancing your federal loan with a private lender takes these repayment plan options off the table.
There is a way to consolidate just your federal loans together with a Direct Consolidation Loan, but this might also disqualify you for special repayment of forgiveness plans.
Also, student refinancing is available to parents who have a Direct Plus loan.
Refinancing your loan can lower your monthly loan cost because of two factors.