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| Refinancing Student Loans |
 Nevertheless, not all student loans are written with changeable interest rates. Some types of loans among them the Federal Perkins Loan and the HPSL loan are fixed interest rates. It means that the rates always remain the same. If the interest rate proposed when you refinance student loans is larger than that of your fixed rate loans, then you could actually pay more by adding your fixed rate loans to the mix when you refinance student loans. ScholarPoint lending specialists can help you find the most cost efficient solution in terms of which school loans to incorporate.
No reconsolidation after July 1st, 2006
For years, borrowers have enjoyed the flexibility of refinancing student loans a lot of times in order to benefit from better interest rates or to prolong their repayment period. As of July 1st 2006, student loan borrowers no longer have this option except for in a few particular circumstances. These new limitations are part of the "Deficit Reduction Act," a set of changes in place to start repair of the nation's rising deficit.
Since July 1st, 2006 borrowers can refinance college loan only in cases where some of the loans were left out of the original consolidation or the borrower has new college loans to add in or if the current lender does not provide an income sensitive repayment plan. It's important to find a lender with a solid reputation and high incentive savings options, because borrowers are more or less locked in with the first lender they select.
 Loans cannot be in default in order to refinance
The payments must first be current and not in default, when refinancing a student loan. Loans that are current include those that are in their grace period, in deferment or in forbearance - as long as there are no payments due.
If you are a month or so behind on your student loans because of extenuating financial strain, try to contact your current lender about securing a hardship deferment before you refinance student loans. Oftentimes, if the payment is just a little tardy and your financial situation qualifies, the lender will backdate the forbearance thus bringing your loan current so that you can move forward in your effort to refinance student loans.
A consolidated education loan cannot include private and federal loans
If you've got loans from a private lender as well as loans that were granted through a government student loan program, you'll need to secure two different loan consolidations.
Most lenders advise consolidating federal student loans first, and then consolidate private loan. Separate consolidations are only necessary for private and federal loans. Any type of federal loan can be combined such as subsidized and unsubsidized Stafford loans.
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