For many Americans, graduating college means entering the real world and joining the workforce. For others, however, educational pursuits roll on at the postgraduate level, whether it's to obtain a medical, law, business, or other master’s degree. With that comes another two to four years of tuition to shell out, depending on the career you wish to pursue.
As a result, a lot of fledgling grad students have to take out new student loans, before the ink on their undergrad loans has a chance to dry. Adding more debt on top of existing debt is never a fun exercise, and for many students it could be coupled with moving into a new place and other life altering expenses.
While some people have the option to defer their undergrad loan payments, others may not, or simply prefer making payments to get ahead of their growing debt. For those who want to work toward paying off their undergrad loans during grad school, there are certain benefits to consider when it comes to student loan refinancing.
Interested in refinancing your undergrad student loans? Fiona saves time and effort by matching you with personalized student loan refinancing offers from top providers.
How Does it Help to Refinance?
A lot changes with time, and that includes the rates and terms you could be eligible for when it comes to paying off student loans. While a lot of grad students may not know they have the option, or are just too busy with life and school to consider it, student loan refinancing can assist borrowers in a multitude of ways.
For starters, student loan refinancing can simplify the process of juggling multiple loan payments per month by consolidating all of your loans into one simple payment. Instead of having to worry about when one payment is due compared to another, student loan refinancing eliminates the juggling act of being indebted to multiple lenders, which helps your peace of mind when cramming for midterms.
Beyond consolidating your previous loans into one payment with a new lender, student loan refinancing also opens the possibility of obtaining a lower interest rate. As stated above, a lot can change over time, including your creditworthiness. A better credit score and credit history can result in a fixed APR (annual percentage rate) that nets out to a figure lower than what you were previously being charged (depending on creditworthiness).
Finally, a lot of grad students have to budget their expenses, whether they’re able to find time for paying work or not. On top of rent, transportation costs, and other everyday expenses, there’s also monthly bills. With student loan refinancing, borrowers can choose from a variety of repayment plans that can stretch out their monthly installment from five to 20 years. For those looking to lower their monthly installment for budgeting purposes, a longer repayment plan makes sense. On the other hand, those looking to ultimately pay less interest could opt for a shorter term.
For students moving on to grad school, there are a lot financial considerations that hang in the balance. While every decision may not be easy, those interested in paying off their undergrad student loans could do so on new terms that better fit their financial situation, thanks to student loan refinancing. With Fiona, borrowers can get matched with personalized student loan refinancing offers quickly and easily— with zero effect to their credit score.