Start Consolidating debt pros and cons

Consolidating debt pros and cons

Keeping track of several different student loan payments, on top of many other bills, can be frustrating. Many private lenders even offer a discount APR if you enroll in automatic payment withdrawal.

The private lender, Earnest, even allows borrowers to switch between a fixed and variable rate without incurring any fees.

One popular option to lower monthly student loan costs is refinancing. However, before you refinance your loan, take a better look at the pros and cons of refinancing.

Student loan refinancing is when a private lender takes on your loan, or loans, and combines them into one loan at a new rate and repayment schedule.

If your current loan has a grace period still intact, wait until that period is over before starting the refinance option.

When you refinance your loan, you can choose how long you want your loan, as well as if you want a fixed or variable rate.

Dropping a cosigner, which is typically your parent or another close family member, releases any extra tension in your relationship.

Cosigning for a student loan is a massive undertaking and comes with high risks.

If you are refinancing to lower your interest rate, then you will be saving money.