Unless you come from a wealthy family or received a full academic scholarship, if you recently graduated from college, chances are you have a pile of student loans that have to be repaid. I know that I did, and I know how confusing it can be if you ended up with several loans through different banks. This is definitely an issue for many people that took the plunge and went to graduate school as well and coming out the other end with a shiny Masters degree or Doctorate and a pile of different loans a mile high. And while, in most cases, you will have to pay back every dollar you borrowed, there are a few ways to make it less confusing by rolling all of these student loans into a single student loan refinance.

There are several student loan refinance options to choose from and several places you can go to take care of consolidating your loans. And there are a few things that will help you to get the best deal when you decide to roll all of your loan payments into one.

The first thing that you will want to do is find out if you are looking for federal student loan refinance or if you need to refinance private student loan. When most people are attending school they do not pay much attention to the kind of loans that they are taking out because they never see the money switch hands. They show up at the student loan office and sign the papers, pick up the checks and off they go to the bookstore.

There are a lot of different sources that provide the cash needed to pay for your education. Many of these are banks and other financial institutions they lend the money with a guarantee from state government or the federal government. There are also loans that are made by the government and there are private student loans, and it will help you to know the difference in each one so that you can decide if the student loan refinance rates will make a big impact on the amount that you have to pay back. With refinancing a student loan, you will be looking to lower your monthly payments as well as the overall amount you will have to pay back over the life of the loan compared to the total amount paid handling them all individually.

Generally, the interest rates on student loans are fairly low providing that you did not ruin your credit before you went to college. Most students have not had the chance to do that by the time they enter college. Student loans that are made by the government usually have lower interest rates than private loans. When you are checking into different options for government student loan refinance you will want to compare the two different rates on each type of loan, government and private, and compare the overall student loan refinance rate that you are getting compared to the rate of your existing loans individually. It may not be worth rolling your government loans in with the private ones. You will need to total up all of your loans and figure out how much the payment will be when you do a refinance of a student loan to consolidate all of your payments.

When you have the total of all of your loans you will want to then separate them. Divide them by government student loans and private student loans. Now figure out how much the payment would be for the loans separately. After you have figured out the payments compare them to the payment that you would have to make when you refinance them and see which one you like best. Each option will have a different amount that you will have to pay each month, and the options will also have different lengths of time that the loan will be paid off in. Make your decision based on which option works the best with your financial goals. If you can lower your monthly payment and total amount paid back with a student loan refinance, then that would be a great deal.

Refinance student loans are not like any other type of loans that you will get. You will need to get your credit report straightened out and have a good payment history. The lenders that you will be going to see about your student loan refinance options will use your credit score and payment history to determine what interest rate you will receive which will determine what your payment will be each month.

Another thing that will help you is to keep an eye on student loan refinance rates. The rates for federal loans change each year on July 1st, so if you do not think the rates will stay low you will want to lock your rate in before the rate change takes effect. You can easily find rates on many websites or government web pages.

One thing that will save you time when you are exploring your student loan refinance options is checking with the lenders that you are interested in consolidating your student loans with to find out what their requirements are. Each lender that you go to will have its own requirements that must be met such as: a minimum dollar amount of loans or a certain length of time that you will need to be out of school. Be sure to ask about these requirements before you waste your time and put in a lot of hard work with a lender that cannot help you.

In order to have the lowest payment possible you may want to check into different discounts and incentives that may be offered by the financial institution that you choose to refinance your student loans. You may find that you can receive an incentive if you pay your payment early, set up an automatic draft payment plan, and for paying your payments on time. To be sure what is offered check with the lender that you are discussing your options with.

Going over your student loan refinance options is a lot of work, but if you can get a lower rate, lower payments, or any other benefit from doing it then it will be very valuable to you in the end. Some things to know are: by getting a lower interest rate you will be able to pay off your student loans early and by extending the life of the loan you will have lower payments due each month. Be sure to review all of your options before making a decision before making any decisions.