[00:00:00] Refinancing your student loans can be a great way to improve your financial situation. Student loan refinancing means combining your current loans into one new loan with a new interest rate and repayment term. There are a few reasons why refinancing might be a good idea, and if any of the following reasons resonate with your current situation, then refinancing might be right for you.
Reason number one, you need to free up more cash every month. If you’re finding it harder to pay other bills and expenses while staying current with your college loan payments, refinancing may allow you to decrease that payment amount by lowering your interest rate or adjusting your loan term. A lower monthly payment means more money in your pocket.
Reason number two, you pay multiple student loans per month. Keeping track of multiple student loan servicers and payments each [00:01:00] month can become overwhelming. Refinancing your loans will bring all your student loan payments under one servicer, which means you’ll only need to make one payment every month.
Reason number three, you want to lower your interest rate, whether you’re paying back, federal or private loans or both. You might have an interest rate that seems higher than normal in today’s market education, refinancing loans are designed to give you a lower interest rate, which will save you money.
Reason number four, you want to remove your co borrower from your loans, whether you’re the primary borrower on the loan or co-signed with a parent, child or other family member or friend. As long as your credit profile supports it, you can refinance your loans on your own and release your co borrower completely from that loan.
On the other hand, [00:02:00] you can add a new credit worthy co borrower to your refinancing loan, which may help you potentially secure more favorable terms with the new loan. When considering refinancing, keep in mind that you’ll no longer be eligible for any benefits or protections offered by your existing loans.
For example, federal student loans offer unique benefits that will expire if the loan is refinanced, such as income-based repayment options and loan forgiveness for public employees. To preserve these benefits, you may want to consider a federal direct consolidation loan. If you’re ready to refinance your college loans, check out the Mifa Education refinancing Loan Mifa refi to see if it’s right for you.
You can even get a rate quote from Mifa Refi without affecting your credit score. Learn more at [00:03:00] mifa.org/refi.