Refinance School Loans

Written by Mark Sanfilippo
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In the world of loans and loan repayment in general, refinancing is one of the great tools for winning the ultimate "interest rate war." Whether you have a small amount of loan debt, or you're carrying tens of thousands of dollars of debt, refinancing can be a great way to make your loan payments more manageable. In case you're wondering, refinancing isn't just for mortgage payments anymore.

One major source of consumer debt in America is student loan debt. The cost of a college education is increasing at an enormous rate, and paying for college requires more than 50 percent of the student body to take out a student loan of some type. These loans, by their very nature, are generally not small or insignificant.

If, like many students, you had to take a few different student loans, then the chances are that these various loans all have a different interest rate attached to them. You could be paying 10 percent or more on one, while only paying 7 percent on the other. Consolidating your loans into one larger loan can level the interest rates so that you're just paying one rate.

There Are Other Benefits of Consolidating

In addition to the interest rate reduction associated with consolidation, there are a few other perks as well. For one, there are some really flexible repayment plans available under the Federal Consolidation Loan Program. Some of these plans allow you to adjust your monthly payment according to your monthly income. As you earn more money, you can begin to pay off more of your loan, but when times get tough you can reduce back down to a minimal payment.

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