GLOSSARY · DEBT & HOUSING

Student loan refinancing

Replacing one or more student loans with a new private loan, usually to get a lower rate or a different term. It can cut interest when the new rate is lower at the same term, but a longer term can cost more in total. Refinancing a federal loan permanently gives up income-driven plans, federal forgiveness, federal deferment and forbearance, and federal discharge rules.

Also called: refinancing student loans, private refinance

COMPUTE IT WITH YOUR NUMBERS

Debt payoff planner →If I put $X/month toward my debts, when am I debt-free and which order saves most?Federal student loan repayment plans →Which plan minimizes my payment or total cost now that SAVE is gone and RAP exists?

LEARN IT PROPERLY

CHAPTER · STUDENT LOAN STRATEGIES · DEEP DIVERefinancing: When a Private Loan Makes Sense CHAPTER · STUDENT LOAN STRATEGIES · DEEP DIVEYour Student Loan Game Plan

SOURCES

Federal Versus Private Loans. U.S. Department of Education, Federal Student Aid.

All terms →The Library →