Americans are staggering beneath the weight of their student debt. In 2018, the average student graduated with just shy of $30,000 in student loans . In total, Americans are $1.53 trillion in debt just to go to school.
If you are one of these Americans, you may be feeling the squeeze of loan payments on your budget each month. You may also be wondering if there is anything you can do to better manage your debt.
Refinancing your debt may be a good way to better handle your payments and even save money. Let’s take a look at five reasons why you might consider refinancing your student loans. 1. Consolidate Your Debt
It’s not uncommon for student loans to end up coming from several sources. Many people take out small loans as the need arises. Thus, you may have to keep track of 3 or 4 loan payments each month.
You already have enough bills you have to think about. Remembering multiple student loan payments is an extra stressor that you don’t need.
You can refinance by taking out one loan large enough to pay off all your loans. Now you only have one loan payment to worry about each month, making it easier to keep track of. 2. Free a Cosigner
Since many people taking on student loans are young, they don’t have much (or any) credit history yet. For this reason, it is common for someone to cosign on the loan . This means that they lend the borrower their good credit score as well as they are responsible for payments if the borrower can’t make them.
However, this loan shows up on your cosigner’s report as part of their credit utilization, affecting their ability to take out their own loans. Thus, you may wish to free them of this obligation now that you have better financial footing and have your own (hopefully good) credit score to work with.
The other way to release them from the obligation is to refinance law school loans with an entirely new lender. The new loan terms will be based on your credit score alone and may […]