Federal government’s current student loans are backed by stimulus money. In fact, you can easily qualify for federal consolidation loans with interest rates that are much lower than those of current student loans. The good news is that interest rates are only dropping for the coming academic year. This means that it is a good time to get started consolidating your student loans.
How do you find out about current student loan interest rates? You can look up the annualized repayment figures for each of your student loans. If you have only one loan, this will be easy. Otherwise, you will have to contact each of your creditors separately. Each company’s website will have repayment information listed for students like you.
You may also want to check with your current student loans’ services. Each lender has its own set of criteria for what qualifies you for their refinance program. They will usually list the requirements for federal refinance along with their own specific student loan interest rates. You can find this information on the company’s home page.
If you know your income-driven repayment plan (ERP) details, you should be able to quickly identify the type of refinance program they offer. There are several types of refinancing student loans. Two of the most popular are the Offer in Compromise (OIC) and Income-Based Repayment Plan (IBR). With an OIC, your loans are consolidated into a single loan with a lower interest rate. With an IBR, your interest rates are lowered to an annual percentage rate (APR). Both types of refinancing will lower your monthly payments.
One thing you might also look into is extending your student loans’ grace period. Most students have some grace period before they need to start paying back their loans. Many grace periods run for six months or less. Extending your grace period could save you money. You should calculate your student loan balance and see if extending your loan repayment plan will save you money.
Another thing you may want to consider is going with a loan forgiveness program. This program forgives part of your loan balance, or in some cases all of it, if you qualify. The loan forgiveness will lower your monthly payment, but the payment still might not be as low as you might like. For more information on finding a good student loan forgiveness program, go to the US government’s official website, or contact a federal loan consolidation company.
If you want to save money, you should consider refinancing your student loans. The interest rates are going up across the board with most lenders. If you choose to refinance your federal student loans, make sure you find a good fixed rate loan. Many private student loans have variable interest rates.
A great way to save on payments when refinancing your student loans is to choose a longer repayment term. Your loan company will work with you to find a longer loan repayment term. This longer repayment term will lower your monthly payment. The savings can be used towards paying off any accumulated debt. Make sure you do this when you refinance your federal loans to get the lowest possible payments.
You may also qualify for a federal loan consolidation. When you refinance your private student loans, your interest rates are reset. The federal government will take over all of your loans, and the interest rates are set at the lowest rates in decades. You can get started with the process by contacting one of the current student loan refinance lenders. They will be able to guide you through the process and give you the best advice possible.
Be aware that not all of the private lenders offering lower rates on their student loans are offering federal student loan rates. To verify this, simply contact one of the federal student loan consolidation companies. They will be able to guide you to the lenders that offer the lowest student loan rates.
The US government and many private lenders have recently were adjusting their lending policies. It is important to understand the federal and private lender changes so you know what to expect when refinancing your student loans. This knowledge will enable you to make an informed decision about which lender to use for your next loan. You should compare lenders and use your current information to guide you to the lender with the best student loan rates change.
Recent Comments