The private student loan market is opening up with the first real chance of offering refinances, or consolidation as it’s commonly called.
3 ways to refinance private student loans:
Earlier this year, The Cleveland Plain Dealer reported a company called Charter One has been advertising an Education Refinance Loan with fixed rates as low as 4.74% and a variable rate of 2.31% above the one-month LIBOR rate. Those low rates are contigent on two things: A good credit score and a co-signer, so this offer is of no help if you’re falling behind on debts and your credit is shot. You can refinance anywhere from $10,000 to $170,000 in private student loans with 15 or 20-year repayment options. Federal student loans are not eligible for this refi offer. Private student loans should still be avoided at all costs, but this option may help you if you’re already stuck in one.
Now there’s also a new option for refinancing your private student loans from a consortium of credit unions. Visit CUStudentLoans.com and see what’s available. You may save a substantial amount of interest. A third option would be SoFi.com. They claim to be the largest provider of student loan refinancing, allowing you to refinance both private and federal student loans.
Rules for student loan borrowing:
When borrowing for college, be sure to max out whatever federal loans you’re offered. Should your college expenses exceed your level of federal loans, consider going to a cheaper school, picking up extra work, or whatever else you have to do to avoid private student loans at all cost! Additionally, your total borrowing for a 4-year degree should never exceed your expected first year’s earnings after you start working in your field. If possible, start your degree out at a community college and then transfer to a “name school” where you plan to get your degree. You can effectively cut the cost of a college education in half by doing it that way.
Tip of the Day
An 8-ounce steak is meant to be shared! Many restaurant menus feature 8-oz steaks (or bigger!). For women, 2 servings of meat or alternatives a day is recommended. Men should aim for 3 servings a day. One restaurant steak could be your meat for the day or two! When dining out, look for the smallest servings of lean cuts of meat, fish or poultry. Choose those that have been cooked by methods that require less fat such as baking, broiling, grilling, roasting and barbecuing, and avoid high fat toppings such as creamy sauces, gravy and butter.
“A sign that will be spoken against so that the thoughts of many hearts will be revealed.”
~ Luke 2:35