5 Reasons to Refinance Your Student Loans in 2019August 10, 2016
2019 is proving to be one of the most opportune times to refinance student loans. To explain why, our experts in student loan refinancing and debt consolidation have compiled the top five reasons why borrowers should take advantage of current interest rates and refinance student loans as soon as possible:
- Reduced Interest Rates
Current interest rates for student loans may be much lower than when the loan was opened. Therefore, refinancing while rates are low helps ensure that borrowers pay less in interest and over the life of their loan. Borrowers should, therefore, take advantage of lower, more desirable rates while they are offered, as they could change — and rise — at any time.
- Lower Monthly Payments
Modifying the repayment term of a student loan by extending the years of repayment may allow borrowers to enjoy lower monthly payments. For instance, if a borrower has already paid five years of a ten-year repayment term, he or she may be able to refinance the outstanding amount to ten or fifteen more years, thereby lowering their monthly payment amount. Borrowers should, however, avoid the temptation to extend the term too much, as longer terms generally increase the overall cost of the loan. Make sure to assess each plan and figure out what makes the best financial sense — right now and in the future.
- Benefits Associated with Removing the Co-Signer
Refinancing student loans may allow borrowers to release any co-signers from the loan — an action that can be beneficial to both parties. For co-signers, this releases them from future financial responsibility to that loan, and it may also assist them in improving their own financial profile by reducing the amount of debt in their name. Furthermore, when a co-signer is released from a student loan, primary student loan holders may see an increase in their credit score(s).
- Easy-To-Manage Accounts
When student loans are refinanced with refinancing institutions such as Education Loan Finance, the loans are consolidated into one, easy-to-manage loan. This helps borrowers eliminate any confusion related to having multiple balances, due dates, and payment amounts.
- Gain a Financial Advocate
Just as in any industry, the level of customer service among banks and lenders varies from one company to another. When considering refinancing with any lending institution, borrowers should research and compare each lending institution’s ability to help customers with any issues regarding their student loan refinancing package. In order to maintain a happy, working relationship, borrowers should talk to the company itself and look for customer reviews that describe the company as one that works for the client, is informative, hard-working, dependable, friendly, and flexible. The personal loan advisors at Education Loan Finance specialize in student loans, and we provide our borrowers with information so they can determine the best solution for their budgets.
Graduates and professionals alike have always worked hard to obtain their college and professional degrees. That is why Education Loan Finance’s mission includes helping former students better manage and possibly lower the costs associated with their student loans. Saving that money starts today, and the sooner borrowers begin to assess their loans and find a smarter plan, the more money they can save right now — and in the future. Check out Education Loan Finance’s innovative student loan refinancing solutions or apply today.