However, it’s different than consolidation because you also get a new interest rate—and your new interest rate can help you save money over the life of the loan.
At Earnest, our clients save an average of more than ,000 by refinancing their student loans.
Some of which even include terms that allow unrepaid student loans to be forgiven after 25, 20, or even 10 years in some circumstances.
But flexible Federal student loan repayment programs are only available to student loans.
When it comes to student loans, however, the refinancing picture is more complex.
The reason is that today’s student loans are actually a combination of Federal and private loan programs, and to help alleviate explosive levels of student loan debt (the total of which now exceeds all outstanding revolving credit card debt in the U. ), Federal student loans are getting access to multiple forms of “flexible” repayment plans.
Private education loans are not eligible for consolidation.Congratulations, you’re here because you’re ready to take charge of your student loans.We can help you understand the difference between consolidating and refinancing student loans—and figure out what option is best for your future.Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.The extended period makes the monthly payment amount more manageable; however, the longer your loans are in repayment, the more interest you will pay over the life of the loan.