Yusra3
VIP Contributor
You might be wondering if you should refinance your student loans. There are many reasons why i recommend that you do not refinance your student loans.
Refinancing is a way to pay off your existing loan and get a lower interest rate on it. It's a good way to save money in the short term, but there are many downsides.
Refinancing your student loans can have some serious consequences. For example, if you have trouble making payments, you may end up paying more than what your loan was originally paid for. That means that even though you've gotten a lower interest rate on your payment, it still may not be enough to cover the principal of the loan (the amount of money being borrowed by the borrower).
It's also important to know that refinancing can affect how much money you will owe when it comes time to make future payments. even when the balance isn't paid off through refinancing activities. This means that even though you may have made extra payments with refinancing, those funds won't go toward anything other than paying down the principal balance of your loan.
The Benefits of Refinancing Your Student Loans
There are plenty of benefits to refinancing your student loans:
1) You can save money every month by paying less interest. If you're paying back $10,000 in student loan debt and your interest rate is 7%, then every month you pay $200 in interest charges. Over 10 years, this can add up to thousands of dollars' worth of extra expenses!
2) You'll be able to pay off your student loans faster with less money down payment (this means lower monthly payments). If you have $100k in student loans at 7% interest and need to make payments bi-weekly (which can get expensive)..
Refinancing is a way to pay off your existing loan and get a lower interest rate on it. It's a good way to save money in the short term, but there are many downsides.
Refinancing your student loans can have some serious consequences. For example, if you have trouble making payments, you may end up paying more than what your loan was originally paid for. That means that even though you've gotten a lower interest rate on your payment, it still may not be enough to cover the principal of the loan (the amount of money being borrowed by the borrower).
It's also important to know that refinancing can affect how much money you will owe when it comes time to make future payments. even when the balance isn't paid off through refinancing activities. This means that even though you may have made extra payments with refinancing, those funds won't go toward anything other than paying down the principal balance of your loan.
The Benefits of Refinancing Your Student Loans
There are plenty of benefits to refinancing your student loans:
1) You can save money every month by paying less interest. If you're paying back $10,000 in student loan debt and your interest rate is 7%, then every month you pay $200 in interest charges. Over 10 years, this can add up to thousands of dollars' worth of extra expenses!
2) You'll be able to pay off your student loans faster with less money down payment (this means lower monthly payments). If you have $100k in student loans at 7% interest and need to make payments bi-weekly (which can get expensive)..
