January 2, 2009, Newsletter Issue #101: Refinancing a Perkins Loan

Tip of the Week

You can refinance a Perkins Loan, but you have to ask yourself why you are doing it. There are many benefits that you will lose in a refinance and it may actually end up costing you more over the life of the new loan. Perkins Loans have a fixed rate of 5 percent so you would be hard pressed to find a loan that could offer you a better deal. In addition, any rebates on the principal or deductions of the interest rate will be lost in a refinance. It is also important to consider that there are a number of ways to have your Perkins Loan forgiven unless it is refinanced. There are so many benefits to having a Perkins Loan left as is, that you should seriously consider your options before making the decision. Find out more details from your lender and then determine if you want to move forward with a Perkins Loan refinance.

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