3 reasons why you should consider refinancing your education loan

Is the repayment on your education loan becoming too much to handle? Don’t worry, you’re not alone! In fact, there are thousands of students stuck with tedious student loan repayments, wondering if there’s any way out. And the good news is that there is a way to get some relief from high EMI amounts and it’s called educational loan refinance or balance transfer.

Haven’t heard of this term? Well, it’s a simple process wherein you transfer your outstanding study loan balance from your current lender to a new lender in order to get out of debt faster and eliminate the headache of strenuous repayments.

Want to know more about student loan refinance? Read on, this article will highlight 4 of the main reasons why you should consider refinancing your student loan.

1. Lowered education loan interest rates.

This one of the most common reasons most students opt for educational loan balance transfers. Most lenders provide lowered interest rates to students who are willing to transfer their existing loan from their existing lender to them. A lowered rate can reduce your monthly payments by a considerable amount and thereby provide you some relief from high EMI amounts.

2. Extended Tenures:

This is another reason why many students consider student loan refinance. Aside from bringing down your EMI through reduced interest rates, refinancing your study loan can further bring down your EMI amount by providing you extended tenures.

Yes, that’s right! Some lenders will provide you with extended education loan tenures that in-turn afford you the luxury of lowered EMIs. You can then cut short the tenures to save on the total interest paid by making prepayments as and when you are financially capable of doing so.

3. To avail better customer service.

Often, students are not satisfied with the customer service they receive from the current lender. If this is the case with you, then it makes sense to ditch your old lender and jump onboard with a new lender that’s known for providing better customer support and services. You can visit one of the many student loan aggregator sites to check out which lenders have the best reviews and ratings and make a choice accordingly.

4. Better repayment options.

You could also consider student loan refinance if you are looking for a better repayment option. Some lenders offer varied repayment options to suit students with varying financial needs and capabilities.

For example, some lenders allow you to partially service the interest during the course. With other lenders, you may even start making EMI payments during the course; you could even choose to not pay anything till the course ends or you get a job or even step up your repayments gradually while paying back the loan.

If you can relate with any of the above reasons, then education loan refinance is probably for you. If you haven’t given it a thought before or not heard about this concept previously, it’s worth your time to read up and find out the potential benefits you could stand to receive if you were to opt for it.

An personal loan would be the first financial help for your family in your absence.