Refinancing your student loans to get a lower rate may sound like an easy choice, but consider the drawbacks before you do so.
When you refinance a student loan, you may get a lower rate or pay less overall.
However, if it’s a federal loan, you’ll lose key protections that help during economic hardship.
Eligibilty requirements to refinance a loan can often be lofty and difficult to hit.
There’s a lot to consider when deciding if you should refinance your student loan. You can only do so through a private lender, which would turn any federal loans you refinance will turn into private loans.
See Insider’s picks for the best student loan refinance lenders
You may be angling for better terms on your loan. But refinancing can also come with consequences. Here’s what you need to know.
Pros of refinancing your student loan
Potentially lower interest rate. Whether you’re going for a variable or fixed-rate loan, you can sometimes get a better interest rate than your current one….
This article was written by Ryan Wangman, CEPF and originally published on www.businessinsider.com