It doesnt take watching the news long before you hear reports about the student loan crisis. In fact, nearly every direction you turn there is someone talking about the fast cash loans & debts that have to repay, despite not making much money on a first job or not even having a job. The good news in this is that not only are many students unaware of a very creative option available to them that will allow them to cut their debt significantly but if there is a silver lining to the current economic crisis, its an option banks are enthusiastically endorsing: student loan refinancing.
Dont Consolidate, Refinance
You have probably seen them on numerous occasions: companies offering consolidation loans that reduce what are often many different loan amounts into one single amount that you pay every month until your student loan is paid off. Unfortunately, consolidation of student loan debt involves much of the same trickery as other bill consolidation programs.
In essence, fast cash companies that offer consolidation loans offer to take all of a persons bills, combine them into one, for a single bill that is supposedly easier to pay every month. the trouble with these types of loans is that not only are these consolidated loans simply the sum total of what you already pay each month but for their services the companies that offer these loans charge a hefty fee that is added to the total amount that is paid.
Refinance and Cut the Amount Owed
Remember that old saying about how if it seems too good to be true, it probably is? In the case of consolidation loans, its true. This is because, with a consolidation loan, a loan is simply consolidated into one amount. Unfortunately, that consolidated amount is still the same amount of money you owed before the loan, only with the companys fee. If you are looking for a way that allows you to really reduce the total amount of money you owe on a student loan, dont consolidate, renegotiate.
If you are really looking for a way to reduce the total amount of what you owe on your student loan debt, ask your local bank, credit union or other banking institution to refinance the student loan debt, which means that they will not only combine your total debt, but the interest amount that you will end up paying will be less than that charged on your existing debt. Even better is the fact that the bank who gives you a loan wont charge you a fee to arrange this. The only amount that your bank will charge is the interest they get in return for the loan.
Are you concerned about your chances of getting a refinance on your student loan debt? Dont be. The current economic situation makes many banks and other financial institutions anxious to give out loans, no matter the reason. Dont wait for the economy to get better. Reduce your debt by refinancing today.