To answer the question of which is best for you – a refinance or a consolidation loan – it helps to first understand the primary benefits of each and the main difference between refinancing and consolidating student loans. When you refinance a student loan, you take out a brand new loan.At the time the new loan is funded the entire balance of your old loan is paid off by the new one, leaving you still owing essentially the same amount of money – but with a new interest rate and different repayment terms and conditions.
Personal loan amounts can range from $1,000 to $100,000 based on your eligibility and creditworthiness.
A private student loan may not cover all of the expenses you have while in school, because they’re limited to education costs (with the possible exception of housing).
There are many different factors for students to consider in order to ensure that they’re making the right choices for their families and their wallets.
These are just a few of the issues to keep in mind when students, or former students, are contemplating consolidation.
In sum, I acquired ~$140,000 in student loans, which is no joke. I certainly paid for the experience of living in a large cosmopolitan city, but as far as the education is concerned?
Unfortunately, I didn’t grow up in a household where my parents were able to help me finance my education. I’m sure some of you can relate to my situation and I’m sure many of you are cringing at how ridiculously large my loan balance became. I made a decision to go to a well known private university in a large metropolitan city in the northeast for my nursing education. I’d have probably have been better off obtaining that education at a fraction of that price at a state school.The last thing you need when you’re adjusting to everything is to struggle with paying tuition.Likewise, getting out of school brings a whole other set of alien experiences.Whereas when you consolidate your federal loans with a Direct Consolidation Loan, this only combines your federal loans together without reducing your interest payment.Student refinancing is an excellent option for individuals with high-interest private loans.Whether you’re starting school or post-graduation, here’s what you need to know to manage your student debt.