Most students looking to refinance their student loans do so to lower their monthly payment. When you refinance you may be able to get a lower interest rate especially in cases where you are combining one or more student loans. You also can look into options for extending your repayment terms. Loans serviced through the federal government often have the best repayment terms and interest rates, but if you are going through a private lender make sure you find out what they can offer you. Remember, when you extend the length of your loan to reduce your monthly payments, the amount you will pay overall in interest of the life of the loan will be high.
|Jennifer Mathes, Ph.D.|