Well, it depends. It depends on the terms of the loan. With so many Americans struggling to pay back their student loans, refinancing can seem appealing, but it also has risks. Student loan debt surpassed $1.3 trillion in the United States in 2017 – and nearly 3,000 loans go into default every day, according to federal regulators.
Refinancing can look like an attractive option, offering borrowers a way to lower their monthly payments. But essentially what it does is sell the debt to another lender under new terms. Oftentimes, that comes at the expense of a longer lifetime of the loan.
Carefully examine the terms, because extending the terms of the loan could cost you significantly more money in the long run. It is important to check the following before considering refinancing your student loan debt:
- The length and interest rate of the loan;
- Whether the interest rate is variable or fixed (Fixed is best right now, because rates are low);
- Check for up-front origination fees;
- Compare refinancing offers and read the contract carefully;
- Always check if you are eligible for income based repayment plans, before you consider refinancing options.
Click here to read more on this story
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.