skip to content »

Federal student loans consolidating again

If you feel your rate is high, check out So Fi to see if they can offer a better option.In addition to securing a lower interest rate, here are some other reasons it might make sense to refinance: However, it’s important to remember that refinancing federal loans with a private lender will result in the loss of certain protections from the federal government, including deferment and forbearance.

federal student loans consolidating again-89federal student loans consolidating again-30

With average debt levels surging over $35,0 graduates, many must spend the next decade of their lives (or longer) paying off student loans.If you plan to work in one of these fields regardless, these programs are definitely worth checking out.While loan forgiveness programs are a smart idea for many young people saddled with debt, some of us have no desire to make student loan payments for decades on end, work in the public sector, or stick with a job we don’t truly enjoy.While most lenders offer a grace period of 6 months or more before you must begin repayment, the monthly payments that will follow are inevitable.No matter how much you owe, and no matter your financial situation, student loan debt cannot normally be discharged in bankruptcy.Public Service Loan Forgiveness (PSLF) forgives the remaining balance on your loans after you make 120 timely payments while working for a “qualifying employer” for a full ten years. Department of Education, a qualifying employer for PSLF can include: Since careers in public service tend to pay lower salaries, you’ll generally earn less during this ten-year period than if you had found work in the private sector.

That last part – the “qualifying employer” part – is the tradeoff you’ll make if you sign up for this program. So, while your student loans may ultimately be forgiven, you may need to sacrifice higher earnings to get there.

Whether you choose to refinance your loans and get approved for a loan with a rate that is better all around, or not, this last section is something you’ll want to pay attention to.

Once you are happy with the terms of your loan and your interest rate, you have the option to pay your loans down much faster than the normal 10 or 15-year timeline.

Which path is best depends on the individual, their debt levels, and their long-term career goals as well as their salary.

“Never accept your loan at face value”, says Taylor Schulte, CFP® a San Diego Financial Planner and the founder of Define Financial.

All it took was a quick phone call and we had our first win.” Before you let your student loans get you down, you should take a hard look at all of your options.