Tuesday, October 20, 2009

Student Loan Refinancing - A Guide

By N Holding

Refinancing your student loan can be a tricky business; there seems to be plenty of information on the internet but a lot of it can be quite misleading. This article looks at addressing particular issues so that when it comes to refinancing your student loan you are armed with all the correct knowledge.

It is usual that student loans have a period after the student has left education that the loan does not have to be repaid. This can be anything from a year to six months and is a perfect opportunity to shave years off the loan repayment period as any payment made during this period goes toward the principle repayment and is not wasted on interest. If you are hoping to refinance then this period is also very important as it can save you money and the lender will give better repayment options.

Financial institutions also offer lender incentive deals to reduce interest rates and further save money for the person taking out the refinanced loan. It is important when considering loan refinancing to take these into account when targeting the right deal for you as they can change your rate of interest from a quarter percent to anything up to two percent. This can lead to massive savings so remember to calculate these discounts and incentives to your final figures.

Rules in the recent past have changed and long gone are the days of refinancing your student loan on multiple occasions to continually get the best deal at the current interest rates. Borrower can now only add additional loans to the refinance package so it is important to get the right product first time around. Research is imperative to make sure you select the right product for your personal economic situation as this loan can be anywhere up to and above 10 years..

It is always a good idea to keep your credit score in a healthy position. When looking to refinance and consolidate any type of loan, the better your credit score, the better rate of interest you will be offered. Once again, this can lead to massive differences in the repayment of the debt so it is an important point to consider.

If you wish to learn more about refinancing student loans visit N Holdings page http://hubpages.com/hub/Refinancing-Student-Loans-The-Ultimate-Guide

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