Refinancing student loans into one low payment, with the payment remaining the same over the entire life of the loan, is now an option available on the Internet through many lenders. Some advertise no credit checks or co-signer for college contracts. No application fees or prepayment penalties apply, as advertised by many lenders online. Refinancing a student loan offers current low interest rates including a fixed rate with consolidation.
If currently out of school and in a grace or repayment status, the borrower is eligible for refinancing a student loan. Parent borrowers may seek refinancing at any time even if the student is still enrolled in school. Most lenders and federal regulations require that a certain amount be owed in order to qualify for a refinancing student loan. Completion time, from start to finish, for processing may take 2 to 8 weeks, depending on the lender. Continue making current payments until processing is completed.
Qualification for deferment benefits may require proof of extenuating circumstances when applying for refinancing student loans. Being in school at least part-time would qualify the person for deferment benefits or forbearance. If the coed is engaged in a rehabilitation program or unemployed, deferment benefits may be approved. Suffering from an economic hardship may be another reason to qualify when refinancing student loans for forbearance. A deferment will not affect interest rates on the current contract.
When refinancing a student loan, the balance may qualify for Federal Insured, Federal Stafford, Federal Plus, Federal SLS, Health Professional, Disadvantaged Students, Perkins, Nursing School, Federal Direct Subsidized or Unsubsidized Stafford, Federal Direct Plus, and any existing consolidated contracts. Federal regulations require a minimum amount on the monthly payment. Repayment plans range from 12 to 30 years. Refinancing student loan requires the first payment to be made within 60 days of disbursement.
Choices for repaying range from fixed equal payments made monthly to interest paid for the first 2 years and principle added after that. Extended repayment plans are available by extending the repayment period up to 25 years. Other plans include sensitive monthly payments based upon the borrower's annual income. Married couples refinancing a student loan can combine joint terms and consolidate them into one. Our first priority is to serve God. He is our example and our leader. As Paul writes, "Those things, which ye have both learned, and received, and heard, and seen in me, do: and the God of peace shall be with you" (Philippians 4:9).
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