What is it?
Private companies are offering lower interest rates on student loans, which can help people with education debt lower their monthly costs. Refinancing your student loan can also reduce the term of your loan so you can get out of debt faster without paying more, or it can extend the term to further lower your monthly loan payment.
When is it a good idea?
If you’re on stable financial footing and would rather use your money more productively, student loan refinancing can be a good option. If you’re struggling financially, taking advantage of special allowances and forgiveness programs with your existing federal loan may be a better way to go.
"My student loan payments were reduced and my long-term plan now has me saving over $3,000."
- Elise, 28 years old