My EdAccount direct student loan refinancing.
Student loan refinancing is an aid needed by students who have problems paying their Student loan on time. A student may consider refinancing student loans, when he/she cannot handle payments with multiple loans. Multiple loans can be described as multiple interest rates. By refinancing student loans, students may be able to consolidate their multiple loan payments into a single low interest rate payment. As a result, students may save thousands of dollars. Keep in mind that many lenders will ask for credit report when someone applying for student loan refinancing. A student will be able to qualify onlyif he/she has a good and valid credit report. Student can submit the application through banks or credit lenders.
Will loan consolidation result in saving money?
If the interest rate on the new loan is lower than the current interest rates of your student loans, then refinancing can save you a lot of money by lowering your monthly payments and decreasing the overall amount you will have to pay on your student loan over time.
How student loan refinancing works:
When you consolidate several student loans into one, the new lender will pay off the entire loan amounts you owe to the original lender(s). As a result you will have to make a single monthly payment to the new lender instead of making several payments to different lenders each month. Your will start a new repayment period with the new lender. If you select to repay your new loan over a greater period of time, it will reduce your monthly payments, but will increase the amount of money you will pay to the new lender over the lifetime of the loan in interest payments. My EdAccount suggests you establish as short repayment period as possible given the largest monthly payment you feel comfortable with.
When to refinance?
My EdAccount suggests you consolidate your existing student loans if you want to reduce your monthly payment or when the current interest rates are significantly lower than what you currently have and you want to save money by locking down into a lower interest rate.
Best of luck,
My Ed Account Student Loand Refinancing