This Infographic Will Help You Decide If You Should Refinance Your Student Loan
If student loans are giving you a hit, refinancing may be a way to get some relief. This infographic will help you decide if this option is right for you.
When you refinance your student loan, you are basically taking out a new loan with a new, lower rate. Sounds great, but it has its drawbacks, so it’s not a smart idea for everyone. We’ve previously covered the pros and cons of refinancing in detail , and to keep things simple, NerdWallet has posted an infographic below.
It’s pretty simple, but if you’re unsure of where to start, a drawing will help you figure out if it’s worth going the refinancing route. Several factors mentioned in the graph:
- Your credit rating : The higher your credit rating, the better your refinancing rate. If you have a low credit rating, you may not even be eligible for the program.
- Private and public student loans : You will save more on refinancing a private loan, NerdWallet explains, because interest rates are usually higher for private loans.
- Federal Loan Options : If you refinance your federal loans into private loans, you will lose some of the hassle options like flexible repayment plans, loan deferrals, and student loan forgiveness.
- Balance Your Debt : According to NerdWallet, your loan must be at least $ 7,500 to be eligible for refinancing.
Check out the infographic below. If you would like to know more about their refinancing options, they have more useful information at the following link.
Many Degree Holders Can Save Money By Refinancing Student Loans | NerdWallet