(WTNH) — Former students currently in the workforce know that having a paycheck doesn’t always mean it’s enough to cover the bills and the cost of the degree they now hold.
Refinancing student loans may sound like a good option to save, so let’s explore when it’s a good idea and when you may want to hit the pause button.
US News says if your credit score is strong enough to get you a better interest rate. It may be a good idea to refinance. Consider 650 or higher could get you better rates and cash flow.
It may also be a good idea if your private loan has a variable interest rate and you want it fixed. Or if you want to reduce the number of payments you make. Consolidating and refinancing is a good option.
But US News says the refinance may not be a good idea if the benefits of doing so are unclear. Or if you are struggling to make payments.
Remember, federal loans have many payment and emergency options that can help you and may even be better than refinancing.
Another scenario that may make it a good time to refinance is if you have a co-signer you want to release. For that, you’ll likely have to have met certain credit criteria.