Refinance Government Student Loan

Students under the obligation to repay their government loan debts often make the decision to refinance government student loans. This decision is difficult to make in the first place and finding the proper information necessary to follow through proves even more confusing and frustrating for some students and graduates. In the United States’ postsecondary school environment, loan monies from the federal government are available to virtually all prospective, as well as current, collegians.

Looking to refinance a government student loan?
Find out how to refinance a government student loan today.

Only certain forms of government loans are eligible for loan consolidation through the United States Federal Government and the Department of Education.

The United States government offers refinancing on many loans, including:

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

Students commonly turn to government student loans in an effort to fund their higher education today. In fact, according to the National Center for Education Statistics show that while only 49% of students borrowed money in the early 1990’s, 65% of graduates finish their college careers with debt today. Students finishing school are afforded numerous methods to refinance and consolidate their government student loans through a number of federally supported programs. Students indebted to the government for loans prove much more common than most care even to realize. Interestingly, sixty-three percent of undergraduates at higher learning institutions throughout the United States received some form of financial aid from the government according to the National Center for Education Statistics. Though wading through all the necessary information for student loan refinancing is confusing when done alone, this does not need to be the case.

According to the American Council on Education, which represents the leadership of all accredited United States degree-granting programs as of 2008, states the average student at a public, four-year college leaves with $26,119 in student loans. For private schools, the average loans amount to rises slightly to a typical student debt amount of $29,000. Students prove unable to accurately predict on a year to year basis their financial needs for upcoming school years, thus, many students inevitably resort to taking out multiple loans at various times. Consolidating and refinancing all these various loans into a single, simple monthly payment can undoubtedly save students a high degree of stress and irritation, not to mention varied degrees of money as well. In an attempt to refinance government student loans, private lenders and the Department of Education allow borrowers to rectify all existing school loan debts with one comprehensive new loan.

The rates of the newly consolidated loan depend on several key factors; first of which is the remaining balance of all previous student loans and their respective interest rates. The loan amount and the interest rate combine to form a mathematical weighted average, which becomes the refinanced government student loan rate rounded to nearest 0.125%. The second factor is the credit worthiness of the borrower, including payment history on outstanding student loans. Blemishes on a potential borrower’s credit history will at the very best spike school loan refinancing rates into the double-digits, not to mention most likely result in denial of the loan application. A third factor is the length of the prospective loan term. Typically, terms on refinancing loans for educational debt last anywhere from ten to thirty years. A lengthier repayment period on a consolidated loan will undoubtedly lower monthly payment obligations; however, the total amount repaid over time is significantly larger than shorter-term loans with the same principle amount.

Looking to refinance a government student loan?
Find out how to refinance a government student loan today.