As a student graduate or one looking forward to graduate soon, you will be confronted with the reality for the need for student loan refinancing. The high interest rate trap that most student graduates find them in should be avoided at all costs. Since this is relatively new product in the market, many student graduates are yet to appreciate fully the concept behind the student loan refinancing.
After making your application, you will be pre-qualified and from there onwards, you will be on your way to reaping any of the following benefits which come with student loan refinancing.
In most cases, the loan applications for student loans are too standard for individual needs. For instance, if you are financially pressed, you will not be in a position to take up a loan with high interest rate. There are special lenders who offer competitive loan packages. These packages to products are structured in such a way that they suit your individual status as student.
What does this offer portend?
It means allot to have a personalized offer. This is because apart from having a low interest loan, you will be able to repay within a shorter duration. The payments will also be low per month and this could mean that student loan refinancing myth will be busted. Do not be afraid or believe the thousands of lies which people tell about these loans.
The whole idea of refinancing is simple: to save. You may be wondering how one is able to save money but this illustration will suffice:
You are student set to graduate. You had taken a federal loan at an interest rate of 2% APR.You the realize that by refinancing, you could easily get less than 1.5% APR on the same loan. Don’t you think that you save massively? Don’t forget that you will pay within a much shorter period. Things get better when you consolidate your loan.
The process is free
Apart from being simple, the entire application is free. In other words, it cost you nothing to apply and get pre-qualified for the loan. Do you now have any excuse not to apply for the student loan refinancing? Absolutely not!
There is more than one option available for you. For instance, if you have a private loan, you will be treated fairly and equally just like the one who has taken up the federal loan. This is indeed healthy and competitive for the various student s that enter School or college under various forms of funding.
Gives room for comparison
It is not like the financiers are closing your mind off other similar lenders. In fact you will be encouraged to look far and wide in a bid to compare the various packages; you will find that in the long run, you will greatly benefit from this package.
To say that the loan is safe and secure is an understatement. There has not been any incident reported where a student lost money or was cheated after the pre-qualification.