Student Loans Refinancing Options

Private Scholarships & Grants

Private scholarships and grants make a huge difference in saving money while attending college, but they are not always easy to find. These opportunities could be offered directly through colleges (i.e., private schools, community colleges) or they could be offered through third-party organizations who offer student loans and provide scholarship funds specifically for students. Here are some things to look out for when searching for these opportunities.

Student Loan Consolidation

Student loan consolidation makes sense if you have consolidated several different types of federal loans into just one type of loan. If you have federal Stafford loans, then you may want to consolidate them into a federal Perkins loan, which is the same kind of loan except it’s geared towards education and does not require repayment until after you graduate.

Federal Direct Subsidies

Federal direct subsidies are tax credits and deductions that you can receive that help reduce the amount of interest paid on your student loans. You might qualify for subsidized Stafford loans, which means that instead of paying interest on your loans, you get the government to pay it for you. Subsidized loans are only available to undergraduate students though, so postgraduate students need to look at unsubsidized loans. There are two types of unsubsidized loans: subsidized PLUS loans and unsubsidized Perkins loans. In order to take advantage of the subsidized PLUS loans, you should already have an undergrad degree from an accredited institution. And to take advantage of the unsubsidized Perkins loan, you don’t need an undergraduate degree, although you do need a bachelor’s degree or higher.

Alternative Payment Plans (APPs)

An alternative payment plan (APP) is similar to an auto-pay option for your credit card bill. Instead of having to send in full payments each month, you make smaller monthly payments that go towards your student loan balance. APPs are not available for every student loan program, but some programs offer them. An APP works best if you know you won’t miss any payments, since paying off your debt over time is much better than missing a single payment.

Income Based Repayment Program

The income based reprieve program was first introduced in 2008, and its goal is to give people the opportunity to repay their student loans without being penalized. This is accomplished by setting low minimum monthly payments that borrowers would otherwise owe. You’ll want to keep an eye out for changes to the IBR schedule. Even though it’s been around for years, the IBR program has been updated quite a bit recently. 6. Pay As You Earn Plan

Pay as you earn plans allow you to choose how much of your monthly pay goes toward your student loans. Under PAYE, you make either 30% or 10% of your discretionary income available to your student loans each month. Your discretionary income is the amount left over after you subtract taxes, mandatory insurance premiums, mandatory contributions to retirement accounts, and other expenses. Depending on where you live, you might even be able to deduct some of your student loan debt from your taxable income.

Public Service Loan Forgiveness Programs

Public service loan forgiveness is probably the best way to pay off your student loans because it gives you the opportunity to work for a nonprofit organization. After making 120 qualifying payments, you will be completely forgiven of your remaining balance. To qualify, you must agree to serve at least 2 years in public service employment or complete a public service loan forgiveness program.

Student Loans Refinancing Options

One of the reasons I have been able to finance my business education as well as be a student at the same time is the fact that I was able to refinance my loans numerous times throughout school. There are several different options out there if you’re looking to refinance your student loan debt. Since I was paying about $250 a month in interest on my current loan, I took the opportunity to refinance my student loans, which saved me almost $600 in just one year. If you’re currently having trouble making payments or thinking about refinancing your student loans, here are some options available to you:

Loan Consolidation

Loan consolidation is likely going to be your best bet to save money on your monthly payments. When consolidating your loans, the lender will take into consideration your total amount of debt, how much you are paying each month, and then choose the most advantageous rate based off this information. Most lenders offer 0% interest for six months. After six months, they may start charging you a higher rate, depending on what your credit situation looks like after the six-month period.

Pay Off Your Debt Early

If you have significant amounts of extra money sitting around, consider using it to pay down your student loans. By doing this, your payment will be significantly lower than if you were to use the money to buy something else. You don’t want to get rid of any extra cash, however, since you need to make sure you have enough money saved to cover your financial obligations.

Student Loan Forgiveness Programs

Many student borrowers are eligible for federal programs that allow them to cancel their debts after certain requirements are met. However, these programs are only available to those who meet the specific criteria set forth by Congress. Additionally, while many states have their own state-based forgiveness programs, not everyone qualifies. Check with your local Sallie Mae office to determine whether you are eligible before applying.

Income Based Repayment Program (IBR)

Another option for student loan repayment is the income based repayment program. Under this program, your monthly payment is adjusted based on your family income. This means that even though your payment might be high initially, it will decrease over time until you reach an estimated balance of zero. In addition to eliminating interest payments, the IBR plan also gives you additional flexibility regarding when you have to begin repaying your loan.

Private Lending Companies

Some private companies specialize in lending money to student borrowers. These services generally charge less per month than traditional banks, and often allow for flexible repayment terms. Many do require a co-signer on the loan, however, so make sure you check the fine print thoroughly. One thing to note is that many companies charge a fee for setting up your account, so it is recommended that you speak with a few different lenders ahead of time to find out what you can expect.

There are probably other ways to cut back on your student loan payments, but I think these five options are great places to start. Remember to keep track of your progress, and don’t hesitate to contact your lender once you feel you have reached your goal. Good luck!

Student Loans Refinancing Options

Conventional Loan Refinance

A conventional loan refinancing involves changing the interest rate of your student loans. The benefit is that you get a lower monthly payment due to the refinanced amount being higher than the original amount owed. However, there are many risks associated with refinancing your student loans. These include potential fees, interest rate hikes, and even defaulting on your existing student loans. There are some lenders who will waive the prepayment penalty if you pay off your student loan early, however, the length of time before you would be eligible to refinance again varies depending on the lender. In general terms, a standard 30-year fixed-rate mortgage can be expected to last between 12 – 15 years.

Federal Direct Loan Consolidation

Another way to consolidate your federal student loans is to apply for direct loan consolidation. A direct loan consolidation is similar to a conventional loan refinancing because you take out a new loan and change the interest rates of your current loans. The only difference is that instead of getting a lower monthly payment, you end up paying a smaller total amount over the course of the loan term. Because you’re not taking out a new loan, you may have fewer restrictions on how much you can borrow. You should do your research on how different types of direct lending affect you as a borrower.

Private Student Loan Refinancing

If you decided not to go with the traditional methods of refinancing your student loans, you might consider applying for private student loan refinancing. Unlike other forms of refinancing, private student loan refinancing involves restructuring the terms of your existing debt. If you were able to qualify for private student loan refinancings then you could potentially reduce the amount you owe each month, while still maintaining the same loan amounts. Depending on the type of loan that you currently have, you could make changes such as lowering the interest rate, lowering the number of payments per year or extending the length of time until you repay the loans. Your lender may charge penalties for any changes they feel you’ve made regarding your loans. Before you start making changes to your repayment plan, try talking to your lender about your options first.

Student Loans Refinancing Options

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My Student Loan Debt Story | How I Paid Off My $400/$600 Per MonthPayments

Hi friends! In this video I cover how I paid off my student loans. If you want know how these loans work, go ahead and watch the video. We get into how much monthly payments they make, then we talk about insurance policies the company may offer. Finally we learn where to find help if you have trouble making payments.

In the video below, I’m talking about what to look out for in a policy.

My loan balance was:

$24,000

The current market value of my car is:

Student Loans Refinancing Options

I have worked with several students who have gone back to school for their higher education. I am not going to lie to you; student loans are expensive! If you are in need of financing for college and want to make sure you get the best deal possible then here are some things that you should look out for before doing anything else.

Shop around- This is probably the number one thing that people don’t think about when they first start looking at financing options. Don’t just go to the bank you trust and take what they give you. Start shopping around online. There are literally thousands of different companies that offer financing options. You may find that you qualify for lower rates than expected and even if you don’t you might be able to negotiate them down.

Make sure that you are using the right loan type- Different types of loans have varying interest rates and repayment terms. Some allow you to pay off the debt over time while others require monthly payments throughout your entire schooling career. You definitely do not want to end up paying a lot of money each month if you have the opportunity to avoid it.

Understand how long it takes to pay off the loan- Most loans have two types of payment options. One option is to make fixed payments throughout your lifetime. The second option allows you to add additional payments to your principal balance. The longer term option usually results in a larger investment upfront, however, the payoff period is much shorter.

Find out what kind of credit score you need- Not all lenders will approve you for certain loan types based on your credit history. It is always a good idea to check your FICO Score (credit report) before applying for any loan. Your lender will almost certainly tell you what your minimum score is but you might be surprised by how many lenders actually require your total FICO Score to be above 700.

Know what your current rate is- When you apply for a loan you should know exactly what your current rate is. Many companies advertise low rates but once you are approved those rates often change after that. To make sure that you aren’t getting the lowest rate available you should ask for a current rate quote.

Negotiate the terms- Always try to negotiate the loan terms offered by your lender. Some lenders are willing to let you spread out payments over a few years instead of having them paid in one lump sum at the beginning of your program. Others are willing to waive fees and extend the length of the loan so that you can save some extra money. Keep in mind though that you shouldn’t feel bad asking for these concessions.

Once you have figured everything out, you should call the company you choose to finance your degree and request an application. Once you complete the application you should receive a decision within 48 hours. Remember that you’re basically negotiating a contract between yourself and the company so you should expect a fair amount of paperwork. Good luck!

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