Student loan debt continues to be a problem in this country with over $1 trillion owed nationally. A large percentage of them are struggling to make payments or cannot make them at all. They are sliding towards default and an even bigger financial problem.
In the face of this, there have been a lot of ads lately, as well as articles on the web, that tout refinancing of your student loans as a solution to those unaffordable monthly payments. They say that you can get a better interest rate by doing so! While this may be a solution for some borrowers, for others, it could actually make things worse!
That is why in this episode of the podcast, I wanted to talk about the refinancing option and give some advice on when it can be the solution for you. You cannot work towards financial freedom if you are being held back by unaffordable debt that you can seldom wipe out.
In this episode you will learn:
- Why it is generally a bad idea to refinance a federal loan to a private one
- Why the interest rate isn't as important as you might think
- What features to look for in the refinance loan terms
Links & Resources
- Income Based Repayment on Federal Student Loans
- Federal Loan Unemployment Deferments
- Federal Loan Financial Hardship Deferments
- Citizen's Bank Education Refinance Loans
- Citizen's Bank: Is a Loan Refinance Right for You?