Refinancing your student loan is not always a good option. If your goal is to reduce your monthly payment by extending the life of the loan, you could end up with a higher interest rate and hardly any savings on the payment. Some lenders may also charge you a fee for student loan refinancing which adds even more to your overall costs. Before you apply to refinance your loan, ask your lender to disclose all costs that you will have to pay. If you end up owing more with very little reduction in your monthly payment, it may not be worth it to consider this option.
|Jennifer Mathes, Ph.D.|