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Refinance Federal Student Loan

Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.

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For those with student loan debt obligations, the decision to refinance a federal student loan can prove confusing and complex. Federal loan money is available to almost all current college students. In order to afford higher education, federal loan funds are a common avenue used by parents and students. For those finished with school wishing to refinance federal student loan debt, the government offers even further assistance and fiscal aid through consolidation loans.

Need to refinance a federal student loan?
Refinance a federal student loan today.

Student loans eligible for federal refinancing loans include:

  • PLUS Loans
  • Graduate/Professional PLUS Loans
  • Stafford Loans

There are many programs out there for loan repayment. With the right research and assistance, shopping for the right educational loan refinancing instrument can be a relatively simple decision. Heavy financial burden from paying for college student loans directly following graduation is becoming commonplace amongst American college graduates. The National Center for Education Statistics notes 63% of collegiate undergraduates received financial aid in the 2003 to 2004 academic year. Consolidating various loans into one easy monthly bill may save students, as well as their parents, cash and massive amounts of consternation. In refinancing or consolidating federal student loans, private lenders or the Department of Education lends borrowers the money to close all existing student debt accounts in exchange for new interest rates. The Department of Education, which offers the refinancing loan, derives the newly minted interest rates from a weighted average all consolidated loans, which is the rounded to the nearest eighth of a percent. Although interest rates generally reduce for borrowers, the repayment term is exacerbates to a period of typically ten to thirty years. This extension of repayment time, thus, raises the total amount of interest plus principle investment due to the Department of Education at the cessation of loan repayments.

According to the National Center for Education Statistics in 2004, the typical college student using loans to fund some or all of their college education owed an average of $5,800 for that academic year. Since then, the value of the dollar has rapidly declined, college costs consistently raised, and the competition for loans increases every time a new high school senior chooses to pursue college dreams. With less robust economic times presently and ahead, many students adapt to the fluctuating economy through deciding to refinance a federal student loan. In contrast to the variable interest rates offered on individual loans, which vary on based on the ninety-one day Treasury bill, the interest rate on consolidated loans are fixed interest rates. Consolidated or refinanced federal student loans combine a weighted average of all outstanding loan rates and set a consistent and calculated monthly payment. This monthly payment is due for the life of the consolidated loan.

When lenders lock-in rates to debtors, the refinancing agreement schedules a secure monthly payment amount. For students fresh out of college into an uncertain economy, taking out a loan with a fixed monthly payment plan is preferable. Consolidating loans can help struggling debtors save their credit rating, and in the future, prevent untold thousands of dollars going to higher mandatory lending rates. Consistent repayment, on the contrary, can improve and enhance the financial health of students wishing to acquire a loan based on their credit status.

Need to refinance a federal student loan?
Refinance a federal student loan today.