Should I refinance my student loan?
Updated: Jan 21, 2019
Refinancing federal student loans could result in lower total cost of debt. However, it is sometimes wiser not to refinance all at once.
J. from California, $113K in student loans debt
Borrowers that have accumulated significant amounts of student loans due to professional schools tuition costs, can sometimes save thousands of dollars by refinancing their loans with various student loan refinancing service providers. However, they'll be losing some favorable terms like deferment, income driven repayments and student loan forgiveness.
This is why you should always have a plan on how to repay your loan responsible and use refinancing as a mean to an end, and take into consideration the various federal protections when choosing to refinance.
Money Compass debt optimization tool uses various algorithms to choose which loans should be refinanced and which should remain federal. You can get your free plan here
Have a specific question regarding your loans? Send it to FreeAdvice@moneycompass.io