| There are many myths about student loan | | | | that rate may not be fixed. In the end, you could |
| refinancing. Some of these myths may appear to be | | | | wind up with a higher interest rate. However, you will |
| in your favor, while others aren't. But in most cases, | | | | still save money by not having multiple finance |
| consolidation can greatly benefit you, and make your | | | | charges. |
| academic debt much more manageable. | | | | Myth: Bad credit will stop you from refinancing |
| The truth is that each situation is unique, but there | | | | student loans. |
| are some facts that hold true in just about any | | | | Fact: Just as most student loans are made regardless |
| situation, and with most consolidation companies. Be | | | | of credit, so it is with refinancing. Your credit will only |
| aware that not every situation, loan, or lender is the | | | | come into play when the company determines your |
| same. Whatever you believe about refinancing, make | | | | interest rate. Even this may not be an issue, |
| sure you know the facts before dismissing or | | | | depending on the company. |
| applying for the option. | | | | Myth: You can only refinance student loans when you |
| Myth: You cannot refinance one student loan. | | | | have finished school. |
| Fact: Any loan can be refinanced, but not every loan | | | | Fact: Student loan refinancing can be done at any |
| should be. You want to check into refinancing your | | | | time. Most companies that offer refinancing options |
| student loan if you can get a lower interest rate. | | | | will offer the same academic deferment that the |
| Myth: You cannot refinance student loans that are in | | | | original loans carried. You still won't be making any |
| default. | | | | payments until you graduate, but you will be saving |
| Fact: This is simply not true. Refinancing student loans | | | | money on finance charges and possibly interest in the |
| that are in default is not only possible, but it is a | | | | meantime. |
| great help in improving credit. The old loans are paid | | | | Myth: Once you have refinanced, you cannot do so |
| in full, and as long as you keep up on the new loan, | | | | again. |
| you will quickly see a difference in your credit score. | | | | Fact: In most cases, the agreement you sign for |
| Myth: Student loan refinancing will always save on | | | | your consolidation will not have any provisions |
| interest. | | | | excluding future consolidations. Student loan |
| Fact: Some student loan companies will give you a | | | | refinancing can be done while you are in school, and |
| lower interest rate when you first consolidate, but | | | | again when you graduate. |