That way, they can divert more money to a business that, if successful, could pay off their loans in the long run.Consider this: A recent grad has five federal loans.
Private lenders can consolidate and refinance both federal and private student loans.
Consolidation also happens to allow her to qualify for Pay As You Earn (PAYE).
Further, the PAYE plan limits her student loan bill to 10 percent of her discretionary income.
You may know what it means to consolidate student loans. But student loan consolidation and refinancing are important tools for managing your debt.
Let’s look at three types of borrowers for whom refinancing or consolidating makes sense.
Tired of going to work with student loans on his mind, he turns to refinancing.