If you’ve got private student loans, you might be able to refinance your debt with a different lender, which could help you pay off your loan faster and save you money on interest. Read on to learn how it works and whether refinancing your private student loans is the right decision for your circumstances.

What Are Private Student Loans?

Private student loans are a type of loan that is offered by private lenders, such as banks or credit unions. Students must apply for these loans themselves or with a cosigner and then work with the lender to make payments. In order to apply for a private loan, students will have to fill out an application form, provide proof of income, and have their credit score reviewed.

How To Refinance Your Private Student Loans

Refinancing allows borrowers to take out a new loan that pays off their current one. For example, if you have a high-interest rate student loan through Sallie Mae but want to use another company that offers lower rates or better benefits, then refinancing could be for you. 

How To Decide If Refinancing Is The Right Decision

If you’re struggling with high amounts of interest on your private student loan payments and are looking for relief, refinancing may be an option for you. When deciding whether or not to refinance your private student loans, there are a few things that you should think about. One is whether or not this will lower the interest rate on your current loan. If you have a better credit score now than when you took out your loan, refinancing may save you a significant amount in interest. Refinancing may also be a good idea for those who have multiple private student loans. By refinancing, you can combine them and pay just one monthly payment.  Additionally, you may be able to refinance to a new loan with a longer term, meaning lower monthly payments.

How Much Can I Save With Refinancing?

Student loan refinancing could save you hundreds or even thousands of dollars in the long run by reducing the interest rate on your existing loans. The savings from refinancing will vary depending on a variety of factors including the interest rate, fees, and length of the loan. 

How Can A Student Loan Relief Lawyer Help Me?

A student loan debt lawyer can help refinance your private student loans by negotiating for a lower interest rate and/or extending the repayment term. They can also help set up a payment plan that will work for you if necessary. A student loan debt relief lawyer can also work with your lender to settle your private student loan debt. If you have defaulted on your student loan payments, a debt relief lawyer can negotiate with debt collectors on your behalf and help you find some relief from the stress of student loan debt. 

Talk To A Private Student Loan Debt Lawyer Today

If you’re interested in refinancing your private student loans or are facing default on your payments, the attorneys of Debt Legal Defense can help. To set up a consultation, contact us at 210-468-1008 or request an appointment online.