Refinancing school loans

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Tismewoodly
Posts: 4
Joined: Sun Mar 25, 2018 7:45 am

Refinancing school loans

Post by Tismewoodly » Sun Mar 25, 2018 8:02 am

Hi y’all, I’m new to this site and this is my first post and I have a question.

Recently I have been thinking about refinancing my school loans. Currently my school loans are with nelnet and they are divided in 7 group loans, ranging from 3.4% to 6.8% for a total of $33858. Below I have broken down my loans.

Group A amount= $3569 with 4.5% interest
Group B amount= $5891 with 6.8% interest
Group c amount= $9211 with 3.4% interest
Group D amount= $3325 with 6.8% interest
Group E amount= $5615 with 3.86% interest
Group F amount= $2175 with 3.86% interest
Group G amount= $4045 with 4.66% interest

My question is, should I refinance my loan so it can be consolidated under one provider and if yes do you guys have any recommendations of companies that would be good to refinance with? I just hate the fact that my loans are broken down in groups and each group has varied amounts owed and interest rates. I rather it all be consolidated. Any suggestions and advice would be appreciated. Thank you!

PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Refinancing school loans

Post by PFInterest » Sun Mar 25, 2018 10:41 am

are you part of any PSLF?
if not, absolutely yes you should refinance.
good place to look, and help support a good site
https://www.whitecoatinvestor.com/stude ... financing/

Tismewoodly
Posts: 4
Joined: Sun Mar 25, 2018 7:45 am

Re: Refinancing school loans

Post by Tismewoodly » Sun Mar 25, 2018 11:24 am

PFInterest wrote:
Sun Mar 25, 2018 10:41 am
are you part of any PSLF?
if not, absolutely yes you should refinance.
good place to look, and help support a good site
https://www.whitecoatinvestor.com/stude ... financing/
What is a PSLF?

Nate79
Posts: 3716
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Refinancing school loans

Post by Nate79 » Sun Mar 25, 2018 11:49 am

Refinance only if the total interest rate is lower in the end.

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CAsage
Posts: 954
Joined: Sun Mar 27, 2016 6:25 pm

Re: Refinancing school loans

Post by CAsage » Sun Mar 25, 2018 11:57 am

A quick google found several websites that allow you to comparison shop student loan refi - but they all vary depending on the degree, type of original loan etc. Honestly, I would hit loans B & D with every penny you can spare, and then look around. The rest of your loan rates are pretty good - I certainly would never refinance for a higher rate or a longer term unless you had serious other issues....

Can you automate the minimum payments to make the bookkeeping less onerous? Set yourself up something simple in excel or some finance app to track them?
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

Tismewoodly
Posts: 4
Joined: Sun Mar 25, 2018 7:45 am

Re: Refinancing school loans

Post by Tismewoodly » Mon Mar 26, 2018 8:02 am

CAsage wrote:
Sun Mar 25, 2018 11:57 am
A quick google found several websites that allow you to comparison shop student loan refi - but they all vary depending on the degree, type of original loan etc. Honestly, I would hit loans B & D with every penny you can spare, and then look around. The rest of your loan rates are pretty good - I certainly would never refinance for a higher rate or a longer term unless you had serious other issues....

Can you automate the minimum payments to make the bookkeeping less onerous? Set yourself up something simple in excel or some finance app to track them?
Thank you. This is some good advice. I’m gonna make an excel file and try to track them that way.

SDLinguist
Posts: 80
Joined: Wed Jan 31, 2018 2:39 pm

Re: Refinancing school loans

Post by SDLinguist » Mon Mar 26, 2018 11:57 am

Also, do you have any money saved up for other expenses?

My wife and I were in a similar situation about 2 years ago. She had around 12k left on her loans, with an interest rate of about 4.5% between the all.

We also had about 15k saved up for a new car for her. Her car was on the way out, 15 years old, multiple accidents over it's lifetime (her first car, student driver, all that).

Originally we were just going to buy another car with the money but realized that with low rates from a credit union we would be able to "refinance" by paying off the student loans and then getting a car loan @ 1.49% from the local credit union for the same principal. So we picked up a nice off lease Civic for about $12k.

This way the over all debt didn't change but the interest was lowered considerably. Of course a very special situation, but if you have anything similar in the near term, it might be worth thinking about. Even if it is only partially covering your total loans.

Tismewoodly
Posts: 4
Joined: Sun Mar 25, 2018 7:45 am

Re: Refinancing school loans

Post by Tismewoodly » Mon Mar 26, 2018 12:10 pm

Yeah that’s something that I need to look into. I’ll only refinance if I can get a lower interest rate on my loans. Since my loans are govt loans if I do refinance than I will not have the opportunity to have my loans forgiven in 20 years. That’s an option that I like having but I hope it doesn’t come down to that. The future is so uncertain, you just never know what may happen. I know it won’t take me 20 years to pay off my loans as long as I pay them more than what they ask on a monthly basis.

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