Do you want to apply for a student loan? If that is the case, you need to have a promissory note signed. Ideally, this is a contract. You will need to pay your loan plus the interest accrued on the due date. Usually, students do not think much before accepting the terms and conditions of the promissory note. If you have a loan, but it is becoming difficult to repay, you can refinance it. The following things ought to be considered when refinancing a student loan.
No Financing from Federal Government
The Congress decides on the interest rate of federal student loans. Also, the rates of interest are based on law no matter how good your credit rating is. For instance, if you have a low credit score, the interest rate charged will be higher and vice versa. You can use a private loan to refinance your student loan. However, you cannot refinance a federal loan with a federal loan.
Understand the Difference between Consolidation and Refinancing
Most borrowers believe that consolidating loans is an excellent way of reducing the interest rate as it is with refinancing. The confusion is understandable because the options are quite similar. You are …