What happens when you graduate with a multitude of federal and private college loans and you need to begin making payments? Most graduating seniors think that they must begin making payments on each individual loan that they have taken out during college, and that there is no other way to repay their college loans so that they don't go into default. The truth is that there is a much better option than making each of your college loan payments separately and this option involves refinancing college loans. To refinance college loans means to pay off the assortment of college loans that you may have accumulated during college with another loan that you take out once you graduate. This other loan is called a refinance loan or consolidation loan, and it can give you the convenience of only having to make a single monthly payment each month instead of having to make various payments on all of your college loan accounts.

A college refinance loan can also save you money if you can secure a better rate and terms than any of your previous college loans. Once you refinance your college loans you will have a completely new loan with a different interest rate and term then any of your other college loans. If you can extend the term of this refinance loan then you can reduce your monthly payment even more if you are looking to save as much money as possible on a monthly basis. To refinance college loans means that as a graduating senior you will be able to save money and gain an added layer of convenience at the same time. Because college refinance loans can provide their borrowers with so many advantages, they have become increasingly more and more popular over the past five to seven years for college students across the nation.

The college refinancing industry is thriving right now even with the lagging economy and so-called credit-crisis, and this is just proof of how good these no cosigner college loans can be for graduating students. Once you are ready to apply for a college refinance loan then you must be aware that this kind of loan product is a credit-based loan and that essentially means that you must have good credit to be approved and to receive the best interest rate. You must also have a substantial income on some level, and this will typically mean that you must be able to show the lender a solid employment history. If you can have these two things in line then you are almost ready to start applying for your refinance loan, and what lender you apply to will depend heavily on whether you have only federal college loans or private college loans.

When you are looking for lenders that can provide you with your refinance loan you must determine beforehand whether you have just federal college loans or both federal and private college loans because some refinance lenders will only be able to make loans to students with federal loans. Another portion of lenders will be able to make refinance loans to students with both federal and private loans so if you find yourself in this category then you need to make sure that you apply to such a lender. You can find a wide array of refinance lenders online, and you should always make sure that you screen for the kind of loans the lender can refinance so that you don't waste your time applying to a lender that cannot work with you. The college refinance loan is a great loan product that can make your life much easier so don't hesitate to go out and shop around so that you can find the best possible deal for your refinance loan.

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