Should I Refinance My Student Loans?

Refinancing your student loans can be a great way to improve your financial situation. Student loan refinancing means taking out a new loan to pay off one or more existing education loans. Whether or not you refinance your education loans should be based on your individual circumstances. If any of the following factors resonate with your current situation, then refinancing may be for you. Just be sure to thoroughly review any benefits tied to your federal and private loans before you refinance them with a private lender.

You Need to Free Up More Cash Every Month

Education loan repayment can use up a lot of your paycheck, and you may find it harder to pay your other bills and expenses while staying current with your education loan payments. Refinancing may allow you to decrease that payment amount by lowering your interest rate and/or adjusting your loan term. And a lower monthly payment means more money in your pocket.

You Pay Multiple Student Loans Per Month

Keeping track of multiple loan servicers and payments each month can become overwhelming. Refinancing your loans will bring all your education debt under one servicer, which means you'll only need to make one payment every month.

You Want to Lower Your Interest Rate

Whether you're paying back federal or private loans (or both), you might have an interest rate that seems higher than normal in today's market. Education refinancing loans, like MEFA REFI, are designed to give you a lower interest rateand thereby save you money. You can find your MEFA REFI rate here.

You Want to Remove Your Co-Borrower From Your Loans

You may have borrowed your education loans with a co-borrower and now want to remove that person from your loans. Whether you co-signed with a parent, child, or other family member or friend, as long as your credit profile supports it, you can refinance your loans solo and release your co-borrower completely from that debt. Conversely, you can also add a new credit-worthy co-borrower to your refinance loan to help you receive more favorable terms with the new loan.

What to Consider Before Refinancing a Federal Loan

A federal student loan offers unique benefits that will expire if the loan is refinanced through a MEFA Education Refinancing Loan. These benefits include:

• Repayment options based on income: You may qualify for a reduced monthly payment if you have a low level of income.

• Loan forgiveness for public employees: If you hold a public service job, then you may qualify to have portions of your federal student loans forgiven.

• Medical and economic forbearance: Federal loan payments may be excused for up to 24 months in the case of medical or economic hardship.

• Rehabilitation of defaulted loans: If your federal loan is in default, then you may be able to have the default removed from your credit report.

To preserve these federal loan benefits, you may want to consider a Federal Direct Consolidation Loan as an alternative way to simplify your federal student loan debt.

Our Loan Disclosure Form below provides all of the important details about our education refinance loans.

MEFA's Education Refinance Loan Application and Solicitation Disclosure

Student loan refinancing can help simplify your life and reach your financial goals. If refinancing sounds like the right option for you, then we invite you to learn more about the MEFA Education Refinancing Loan (MEFA REFI), its benefits, and how to apply. If you'd like to speak with someone, we're happy to answer your questions and walk you through the process. You can reach us at (855) 433-REFI (7334) or refi@mefa.org.

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