How to Refinance My Student Loans?

How to Refinance My Student Loans?

Already during the study many students find it a burden to accumulate more debts each month. This can also affect the coursework – because the financial pressure can be enormous, especially for long courses. You have to start after the grace period of the student loan with the repayment. Not everyone manages to find a well-paid job by then or is even in an internship. So that the student loan can still be repaid, it is advisable to take a low-interest debt rescheduling loan and replace the old loan with it – in one fell swoop.

Refinance student loans and save money

With such a rescheduling you can kill two birds with one stone. On the one hand, one is free from the burden of the past and must fear no legal action or a negative Schufa entry, on the other hand, you can possibly even save money. Even student loans can be awarded with high interest rates. According to the current market situation – the ECB currently has a very low interest rate – many loans are cheaper. So you can save money from the first day of the new loan.

It should be noted, however, that with a normal loan, you also have little time to pay the first installment. Therefore, it is important to either keep the monthly installments as low as possible or to agree on a waiting period in order to gain time. However, both options usually increase the cost of the loan.

Compare the conditions of refinancing student loan

A debt rescheduling loan should not just be taken in at the bank without having previously informed yourself extensively. The best way to do this is by using the credit comparison on the Internet. Here you can find the best offers within a few minutes and even complete and print out the application. This free and non-binding comparison is absolutely necessary, because the offers of the credit institutions sometimes differ considerably from each other. In addition, the online credit comparison includes direct banks, whose offers might not have been noticed without this possibility of comparison.

Lending rates are usually determined according to the creditworthiness of the customer. So whoever earns little or nothing and already has a negative Schufa entry will in most cases have no good chances or have to pay high interest rates. It makes sense to call in this case a second borrower with a good credit rating. This guarantor may e.g. be a parent or partner.

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