Federal student loans generally come with a grace period of six months after you graduate or exit college when you aren’t required to make payments (although it’s worth confirming your lender’s specific repayment terms).
But not, for those who have private student education loans, you’ll likely begin repaying your fund as soon as you graduate. It’s well worth examining with your individual lender to determine if or not this has a sophistication period to your student loan fees.
Because government student loan consumers aren’t normally expected to make money up to it get-off college, it always cannot seem sensible so you’re able to re-finance before next, since the this will stop-start the latest payment procedure
Now that you understand if it are a good idea in order to refinance student education loans, let us check oftentimes whether it is almost certainly not beneficial, or even you’ll be able to, so you’re able to re-finance student loans:
- You have recently filed for bankruptcy proceeding. Filing for bankruptcy can negatively impact your credit report for up to 10 years. Having a damaged credit score will hurt your ability to secure a new loan, so it may be better to hold off on refinancing if you recently filed for bankruptcy.
- You have got funds in default. If you default on your student loans, your credit score is going to take a hit, and it’s unlikely you’ll be able to get a better interest rate by refinancing.