Most look at refinancing student loans because it lowers the cost of the loan by lowering the interest rate and shortening the term. These are the two things you should look for when assessing your student loan refinancing options:
- The interest rate
- Length of the loan term
Here is another reason refinancing might be right for you:
You graduated from college recently.
Interest rates are at an all-time low and refinancing can help lower payments and total cost of the loan.
Since leaving college, your credit score has improved and you now can qualify for better interest rates.
Additionally, if you need lower payments, you could get your student loans extended from a 10-year repayment to a 20-year. Just remember that extending your loan terms will cost you more for the life of the loan. Get lower payments but pay always pay more.