If you are one of those students or former students who are now burdened with the job of paying back your student loans, take heart. The truth is that you are not alone in your situation. In fact, there are practically countless others who are dealing with the same problem to the point where it has become a national crisis. The trouble is finding out how best to deal with it.
The good news in this is that there is a solution which, for whatever reason, many people don’t think of. For years, those with student loans that they need to repay have been told that the best option is to consolidate their debts. After all, the reasoning goes, wouldn’t it be nice to have only one bill to pay instead of many? It’s true that this might seem like a good idea, especially since it is proposed by those offering consolidation loans, but the truth is that there is a better way.
The fact of the matter is that consolidation loans do nothing more than to simply consolidate what you owe into a single bill, plus the fees associated with the loan. Unfortunately, this is most often just a matter of reshuffling money. If, on the other hand, you are looking for a way to really reduce your debt, don’t look into a consolidation loan. Instead, refinance your student debt.
Not only is refinancing your student debt an easier way to deal with what you do, but you will actually be saving money in the process. To accomplish this, simply go to a local banker or other financial institution such as a credit union and ask to refinance your student debt. This, in effect, renegotiates the amounts you have agreed to pay for your student loan funds.
This does not lessen the amount you owe on your loans, but it does lessen the interest you end up paying for those loans, which as anyone knows, can be considerable. The net result will be not only one convenient payment for your student loan, but a significantly less amount of money you will end up paying.