Hefty student loan repayments can leave you feeling cash-strapped and stressed. Fortunately, there are several options to refinance federal student loans and refinance private student loans too.
Here are four ways to refinance student loans, or save money on those bills, and more quickly repay your college debt.
The Federal Government
Technically, you can’t refinance federal loans with the federal government. But if you only have federal student loans, you can get a Direct Consolidation Loan, which consolidates all your federal college debt into just one loan, letting you make a single monthly payment.
This kind of loan consolidation can be helpful if you have multiple monthly payments and would like to streamline things.
Just realize that with federal loan consolidation, you’re taking out a new loan and the interest rate on that new loan will be a combination of all your current interest rates, rounded up to the nearest one-eighth of a percent. So while it’s possible that some of your loans will benefit from a lower rate, overall your new loan will actually be a weighted average of all your present loans, plus one-eighth of a percent. [continue reading…]