To avoid major, permanent mistakes, you should understand the refinancing process and what it means for you and your debt. Some private lenders, mainly commercial banks and start-up companies, offer student loan refinancing.
The federal loan program does not offer refinancing, so when you refinance your federal loans, you convert them into private loans.
Her new interest rate will be the weighted average of her various loans, which come from the same lender.
"There's really not a black and white answer," she said.
Today, there’s a tremendous opportunity to refinance federal loans at a lower interest rate.
Student loan refinancing can save you thousands, but it is not always the right choice.
"Students and graduates should work with their financial aid office and take student loan counseling and spend time educating themselves to see what works best for them." For more information on consolidation and refinancing, view ADEA's educational debt management materials here.
At one time, there was no option to refinance public federal loans (although you could always refinance private loans).
If a dentist comes under hardship, he or she won't be able to apply to defer monthly payments.
However, So Fi does have a forbearance program that is similar to that of the government. Macklin said dental school graduates interested in refinancing but who need those federal benefits should wait, possibly up to a year, to make sure they're on stable financial ground.
For graduates who don't need those federal benefits, he said, refinancing sooner is better than later.
"For every month you pay for the loan, you may be paying higher interest rates," said Mr. "I think the main thing is that people should be aware that options are out there." For Dr.
Many financial institutions only refinance private loans. Radjabli said he learned of So Fi and DRB, opting for the latter. "It really depends on the person and their personal financial situation.