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If you graduated from college this year, you may realize just how much student loan debt you have. With the average student loan debt at around $29,000 per student, it can be overwhelming to see that number and you may wonder how you are going to pay it back. Well, take a deep breath: you have several options when it comes to repayment. Don’t hesitate to give your student loan servicer a call because they will help you work through your options. Or, you can also follow these 4 steps to get ready for student loan repayment. It’s important to investigate your options and be prepared. It’s equally important to know a few things you should avoid.

Deferment & Forbearance

Deferment and forbearance allow you to temporarily postpone making payments or can reduce your payment for a period of time. Sounds great, right? So, what’s the problem? Your student loans continue to accrue interest. That interest could cost you thousands of dollars a year, depending on your student loan debt. Don’t delay the inevitable. You will have to pay back your student loans whether you pay them now or pay them later. Deferment and forbearance are great options if you have no financial means when you enter repayment. However, you shouldn’t use them as a way to delay paying your student loans. If you do need to go this route, try to at least make interest payments on your loans. If you don’t, the interest will capitalize leading to higher student loan debt and higher monthly payments once your deferment or forbearance expires.

Don’t Miss Payments

Make your payments every month and on time. If a loan payment is not made by the due date, the loan becomes delinquent until payment is received. Depending on your servicer or lender, this delinquency can affect your credit report as a negative mark, therefore negatively affecting your credit score. In addition, when you miss monthly payments, your payment will double, then triple, and continue to snowball which may put you in a situation that’s difficult to catch up on.

Avoid Scams

We’ve all heard the saying, “if it sounds too good to be true, it probably is.” It may seem enticing to pay a company to handle the stress of your student loans and promise you low payments or loan forgiveness, which are why these companies exist, but you’ll be wasting your money. Student loan servicers and lenders will not charge fees for finding a repayment plan that fits your needs. The U.S. Department of Education offers several student loan repayment plans and loan forgiveness, cancellation, or discharge for certain circumstances, but all of their services are free of charge.

Being prepared for repayment and understanding what you should avoid are two big steps to successfully paying off your student loans. Just remember, your student loan servicer is there to help you. If you need to adjust your repayment plan or just have questions about your student loans, give them a call (844.307.3451).

Taking out private student loans or refinancing current student loans is a popular option for students. When considering loans or loan refinance, many borrowers initially focus on either the interest rate of the loan or how much their monthly payments will be. This makes sense because they determine how much a borrower pays back over the life of a loan. However, the interest rate and expected monthly payments are determined by several factors. These factors include credit history, current financial situation, future earnings potential, lender costs and desired profit margin, and selected loan repayment options.

Let’s take a look at the repayment options available. Knowing your options can help you when deciding to take out a student loan or to refinance your existing loans.

Repayment Plans

When it comes to private student loans and student loan refinancing, lenders may offer more than one repayment plan. Below are the most common plans you will encounter:

Standard

Standard repayment is far and away the most common repayment plan for private student loans. In Standard repayment, your monthly payments are a set amount. That means you pay off your loan in equal installments over the remaining term of the loan.

Interest Only

With an Interest Only repayment plan, you begin making interest-only payments over a short period of time. Later, you revert to Standard repayment. With interest-only plans, you pay more in interest than with a Standard repayment plan.  Also, your monthly payments are higher than a Standard repayment plan when your loan reverts to full principal and interest payments.

Partial

With a Partial repayment plan, your initial payment amount is set for a period of time. It then reverts to Standard repayment for the remainder of the loan term. The total cost of a Partial repayment plan will also be higher than with a Standard repayment plan.

Deferred

Deferred repayment is when you start making payments at a specified time in the future. Most lenders let you defer payments while you are in school and for six months after you leave school. Deferred repayment is the most costly, since interest accrues while you are deferring your payments. That interest is then added to the principal balance of your loan before you enter your repayment period.

Graduated

While not very common for private student loans, Graduated repayment starts with lower monthly payments that increase over time. With Graduated repayment, you pay more for the loan than with Standard repayment. This is because interest accrues on a higher principal balance over a longer term.

Tip: When lenders offer a choice of repayment plans, they generally charge lower interest rates for Standard and Interest Only repayment. They charge a higher interest rate for Deferred repayment to compensate for the added risk. Choosing to make full principal and interest payments under a Standard repayment plan is the least costly repayment plan available. If you cannot afford to make full principal and interest payments, consider paying at least some amount each month. Whether you make interest-only payments or partial payments, it reduces your overall cost of borrowing.

By exploring your repayment plan options or considering loan refinance, you can find the best option for your financial situation. In Part II of Choosing Your Private Student Loan Repayment Options, we’ll discuss interest rates and repayment terms. These also affect your total amount paid.

You may have heard about private student loans. Some information about private loans is like a Bigfoot sighting. There are a lot of stories, but they often aren’t based on facts. In this article, we’ll look at each private loan myth and give you the facts.

Private Loan Myth #1: Private Student Loans Only Offer Variable Interest Rates

One of the most common myths about private student loans is that they’re only available with riskier variable interest rates. In reality, most private loan providers offer borrowers a choice between a fixed interest rate and a variable interest rate. Depending on your individual circumstances, one may be more appealing than the other. Read more about choosing a variable or fixed interest rate to see what important factors should be considered when choosing your type of interest rate. Additionally, highly qualified borrowers can likely find private student loans with low interest rate options.

Private Loan Myth #2: Private Student Loans Have High Origination or Application Fees

The reality is that most private loan providers currently charge NO upfront fees, also known as origination or application fees. There is no fee to make extra payments or to pay off loans early. Although most loan providers offer loans with no upfront fees, research your options. Be sure to verify any fees or charges associated with loan products.

Private Loan Myth #3: Private Student Loans Require Immediate Repayment While You are Still in School

As a borrower, you have various repayment options offered by different private loan providers. Most lenders have an option to delay or postpone payments while enrolled at least half-time. They also offer a six-month grace period following your graduation or last date of at least half-time enrollment. This gives you the option to not make payments while enrolled in school as long as you are enrolled on at least a half-time basis. This can give you some added flexibility while you are focused on your studies. However, if you can make payments in school, even if only the accruing interest, you can save money and keep your loan costs lower. You can find additional ways to save money on your student loans here.

Private Loan Myth #4: Private Student Loans Have No Deferment or Forbearance Options if You Have Difficulty Making Payments

Most lenders offer options to postpone payments if you encounter some type of financial hardship. (You may want to check to be sure.) Most private loan lenders provide a hardship forbearance to temporarily postpone payments if you find it difficult to make payments.

Many private loan lenders also offer deferments. Deferments can postpone payments for certain circumstances. These circumstances include returning to school, having an internship or residency, or during other approved events. Again, check with your private loan lenders to see what options are specifically available.

Private Loan Myth #5: Federal Student Loans are Always Cheaper than Private Student Loans

As a general rule, explore your federal student loan options first before taking out any private loans. Federal student loans will typically provide you a greater degree of flexibility with repayment options and various forgiveness provisions. You can read a good overview of federal and private student loans here.

However, many private student loans can have interest rates as low as or even lower than federal student loans. Federal student loans also have a nominal origination fee charged to borrowers. As discussed earlier, most private loans do not have any origination or application fees. Several lenders now offer private loans designed specifically for parents for their students’ educational expenses. Parents find these loan options often have lower interest rates compared to federal Parent PLUS loans.

We hope you have a better understanding of private student loans and are better equipped to make informed decisions regarding your education financing options. Research your options to find what works best for your individual circumstances and don’t believe every myth you hear. But, if you happen to see Bigfoot in the cafeteria on campus, snap a pic. You just might be able to sell it and pay off your student loans!

When it comes to student loans, you’ve likely heard the terms consolidation or refinance. You may have thought they mean the same thing. While they’re similar, they are actually two different options for combining your student loans.

Student Loan Consolidation

Direct Loan consolidation is a program offered by the Federal government. This program allows you to combine all of your federal student loans into a single loan. The interest rate for your consolidation loan is a weighted average of all the loans you are consolidating. It is not based on credit, like student loan refinancing. You can also switch your variable interest rate loans to fixed interest rates to avoid paying more interest if variable rates rise. Typically, student loan consolidation doesn’t save you money, but it simplifies your payments into a single monthly payment. You also get to keep your federal student loan benefits, such as income-driven repayment plans and loan forgiveness.

Student Loan Refinancing

Student loan refinancing is a program offered by private lenders. This program combines your federal and private student loans into a new loan with a new term and interest rate. The interest rate of the loan is based on creditworthiness, unlike student loan consolidation. With student loan refinancing, you can pick a term that fits your financial needs and may save you money. However, extending the term of any loan to lower monthly payments means paying more interest in the end. Many lenders offer borrower benefits with student loan refinancing, such as interest rate reductions for auto-debit payments and cosigner release. Keep in mind, if you refinance federal student loans, you no longer have the federal benefits associated with those loans. Find out if student loan refinancing is for you by asking yourself these 6 questions.

Student loan consolidation or refinance can simplify your student loans into one monthly payment. Just remember there are additional unique benefits to both options. Weigh the benefits of each program to decide the right option for your situation. As with any loan, make sure you fully understand all the terms and conditions.

You’ve made your decision. You are going to refinance your student loans. You have done the research. You’ve compared a number of student loan refinance programs. You have completed side-by-side calculations. You know which ones have the lowest interest rates, best repayment options, and the most generous borrower benefit programs. You’ve read the fine print and narrowed your choices down to your top three. But do you know your loan servicer?

Making the Choice

So which one is it going to be? Is it the lender who lists the lowest interest rate? Or perhaps the lender with the repayment plan that allows you to lower your monthly payment the most? How about the lender that offers those tantalizing borrower benefits? The ones that allow you to save hundreds of dollars more when you refinance with them?

Choosing which student loan lender to refinance with can be a difficult decision. While you should definitely consider the overall cost, monthly payment, and borrower benefits offered, there is another very important factor. You need to know who the lender and loan servicer will be after making your new refinance loan; the one you will start making your new monthly payments to.

Who are Loan Servicers?

You may be wondering why this is important. Once you refinance your student loans, many lenders have agreements to sell, or package their loans into financial securities. Thes often go to the highest bidder. The proceeds from the sale then make more refinance loans, which the lender subsequently sells. This happens over and over again. Rinse and repeat.

Lenders Decide

Ok, so the lender sells their loans, but the loan servicer the lender contracts with to manage your account and accept payments has a good reputation, which means you’re good to go, right? Maybe. That’s because the holder of your student loans (either the original lender or the buyer if the loans are sold) gets to decide where the loans are serviced. And once your refinance loan is made, the loan servicer is most important to you, since this is who you will be interacting with. It’s similar to when you buy a TV from a large retailer. The retailer sets the price and sells you the TV, but once you own it, you must contact the manufacturer with any questions or if you need customer support.

Tip: The lender and loan servicer information can usually be found on the lender’s website, in the Application and Solicitation Disclosure every lender is required to present you before you apply for a loan, or on the actual promissory note you must sign. If you don’t recognize the lender or loan servicer, you should call the financial aid office at your school to ask them if they are a reputable organization.

What if the lender doesn’t sell their loans, or package them into financial securities. Everything is fine then, right? If the lender doesn’t sell their loans, or sells them to a buyer that uses the same loan servicer, then you can feel pretty good about things. While there are no guarantees, if the lender uses a reputable loan servicer, then you can feel fairly confident your customer satisfaction is very important to them. The chances that they would jeopardize this by cutting corners with a low-cost, low-quality servicer just to save a few dollars is less likely.

Know Your Lender and Servicer

Knowing who the holder and loan servicer of refinanced student loans are after the loan is made is extremely important. If the lender sells their loans, be sure you know who the buyer is and which loan servicer they use. If you’ve ever had to deal with a company that provides poor customer service, chances are you wouldn’t buy from them again if you didn’t have to. With student loan refinancing it’s even more important, because if you’re unhappy with your loan servicer, the only way to switch is to refinance your loans again.

Don’t let your student loan statement be a surprise in the mail. Be prepared for student loan repayment by asking yourself these three questions:

1. Who are your loan servicers?

When you take out student loans from the federal government, you will be assigned a student loan servicer by the U.S. Department of Education. If you have private student loans, the servicer will be assigned directly by the lender. Your student loan servicer is who you will work with to make payments on your student loans. They can also help you understand your student loan repayment options, and answer any other questions you may have. If you have multiple student loans, you may have multiple loan servicers. Visit nslds.ed.gov to look up your federal student loan servicers if you don’t know them. For private loans, contact your lender.

2. How much are your monthly payments and when are they due?

Now that you know who your loan servicers are and where to send payments, you need to know how much to send and when. For federal student loans, there’s generally a six-month grace period after graduation before your first student loan payment is due. By this point, your servicer already put together a student loan repayment schedule. This schedule shows you how much your monthly payments are.

You should receive a statement from your servicer three to four weeks before your payment is due. Make sure your servicer receives your payment by the due date. If you don’t make a loan payment by the due date, the loan is delinquent until you make a payment. Depending on your servicer or lender, this delinquency may be put on your credit report and negatively affect your credit score. Most servicers and lenders offer auto debit, meaning your monthly payment is taken directly from the account you specify on the due date. By doing this you can ensure your payments are never late. Some lenders even offer incentives, like interest rate reduction, for this type of payment.

3. What are my repayment options?

Your federal loans are automatically in a standard, 10-year repayment plan if you have not specified otherwise. If you find that the payments are more than you can afford, there are other options to explore. Federal student loans have several repayment options to help you repay your student loans. Call your student loan servicer and they will help you work through your options.

You can also consider refinancing or consolidating your student loans into one payment. If you have more than one servicer or lender, you will be making multiple payments every month. By consolidating or refinancing, you can make one monthly payment to one servicer. Consolidation will combine your federal student loans into a new loan so you have a single monthly payment. Refinancing can combine both your federal and private student loans into a new loan, with a new interest rate and term. Student loan consolidation and refinancing is not for everyone, so make sure you understand the pros and cons of each.

Following the basic steps outlined above will set you up for successful student loan repayment. Remember that your student loan servicer is there to help, so never hesitate to reach out if you have questions.

If you have received your financial aid award and still need money for college, private loans may be worth considering. Banks, credit unions, and other lending organizations offer private loans.

First Steps for Private Loans

You take out private loans in your own name. They often require you to apply with a qualified cosigner who has an established credit history. Even if you don’t need a cosigner, using one may still help you obtain a better interest rate. Lenders provide the best rates to borrowers and cosigners with the strongest credit qualifications.

As a general rule, private loans should be the last financial aid option. Always file the Free Application for Federal Student Aid (FAFSA) first, and accept any grants, scholarships, work-study and federal loans offered by your school before taking out a private loan. Federal loans offer more repayment options, income-based programs, and in some cases, loan forgiveness alternatives.

If you decide a private loan is right for you, consider these things when selecting a program.

1. Check to see if your college has a recommended lender list.

Some schools investigate private loan programs and providers on behalf of their students. They provide lists of those they think would best meet their students’ needs. If your school has a list, you can begin there. Your school generally posts school lender lists on their financial aid website. In many cases, the website links you to a third party where your school provided a list of programs. In either case, loan programs are usually listed by feature, so you can compare to see which might best meet your needs. If your school does not have a lender list, you can investigate Credible or other websites which will provide loan program options and help you compare features.

2. Decide which features are the most important to you.

  • Rates – In comparing interest rates, you will see some lenders use an index called London Interbank Offered Rates (LIBOR), and others use the Prime Rate index. Since they aren’t the same, look at the loan programs’ Annual Percentage Rates (APRs). The lowest and highest APR ranges are be displayed. If APRs aren’t listed, be aware that the Prime Rate is typically two to three points higher than LIBOR. The most current rates can be located in the Federal Reserve’s Statistical Release.
  • Fees – Most private loan lenders offer zero application and origination fees. Check all loan programs you are considering to make sure this is true and to determine if there are other fees associated with the loan.
  • Repayment plans and terms – Would you prefer in-school interest payments to keep your costs down? Perhaps multiple repayment period choices like a 5, 10, or a 15 year period are best for you. With private loans, you choose your repayment period at the time you take out your loan. You may also want to check to see if there are deferment or forbearance options if you run into difficulty in repayment.
  • Cosigner release – Your cosigner is responsible for making payments if you do not. The cosigner’s credit report reflects any late or missed payments as well. When investigating options, determine if the program offers a cosigner release, how many payments you will need to make before that is possible, and how involved the release process is.
  • Borrower benefits – Lenders offer a variety of benefits like interest discounts for auto-debit payments, cash back for achieving certain grades, or interest reductions after a specific number of on-time payments. Be sure you determine which are the most important to you and take the required action to meet the requirements.

3. Understand the difference between fixed and variable rates.

As you compare differences between programs, interest rates may be a primary factor. You will need to decide between fixed rates, which may be higher at first but remain the same throughout the life of your loan, or variable rates which may be lower at first but change periodically based on fluctuations in the economy. For more information about the factors to consider before making this decision, go to U-fi From Nelnet’s frequently asked questions.

4. Your rate is the one that matters most.

Lenders may advertise low rates when they share their program’s interest ranges, and many students assume they will receive the lowest rates. See if lenders allow you to use a calculator. If you can enter general information about you and your cosigner, you may be able to obtain a preview of what your interest rate will be before completing the application process and providing authorization for your credit to be pulled.

Private loans can provide a solid financial option for students who need help bridging the gap between financial aid and college costs. Be sure to first research programs fully and understand your responsibilities before taking out any type of education loan. If you have questions, your college financial aid office is the best source of information and guidance about your individual situation.

Most students need to borrow money to cover the cost of their college education. It’s important to understand the borrowing options available. If you completed the Free Application for Federal Student Aid (FAFSA) and received an award letter from your college financial aid office, you’ll likely have the option to borrow through the federal loan program called the Direct Loan Program, or simply known as Direct Loans. In the Direct Loan Program, you can borrow through the Direct Subsidized Loan or the Direct Unsubsidized Loan programs. Graduate students and parents of dependent students can also borrow in the Direct PLUS Loan program. These are all federal loan programs as opposed to private, and are generally your first option.

Direct Loans

If you’re an undergraduate student, you’ll want to explore Direct Subsidized and Unsubsidized Loans first. A subsidized loan simply means that you do not incur any interest charges while you’re in school. You can receive a Direct Subsidized Loan if you have financial need as determined by the results of your FAFSA. A Direct Unsubsidized Loan may also be available to you. As you might guess, the unsubsidized loan means that you are responsible for interest that accrues on the loan while you are in school.

Private Loans

After you’ve exhausted your federal loan options, you may still have outstanding expenses at your college. That’s when you might seek additional funding options in the form of a private loan. While your college financial aid office will instruct you on how to apply for federal loans, you’ll need to determine which private loan lender you want to use. Some schools may provide you with a list of private loan providers for you to evaluate and select. Other schools may simply direct you to find a private loan provider on your own.

Federal vs. Private

A few years ago, there were significant differences in federal loans and private loans. Now, the programs have many similarities and offer unique benefits. The chart below outlines some key factors in the federal and private loan programs.

Ufi-Loan-Type-Comparison

As you can see from the chart, there are a lot of similarities in both programs. Trying to decide between the two? Here are some important factors to consider:

  • If you’re an undergraduate student, in most cases you will have a more favorable interest rate and loan terms with a federal loan. If you think you’ll be entering any type of career that might qualify for Public Service Loan Forgiveness, you will want to stay with federal loans when possible. Private loans do not typically offer any type of forgiveness for public service.
  • Federal loans typically provide a greater array of repayment options, including income-driven repayment plans. Most private loan providers do not offer repayment plans tied to your income.
  • If you can afford to make a higher monthly payment over a shorter repayment period, you may find a lower interest rate with a private loan.
  • Many borrowers, especially undergraduate students, find it necessary to use a cosigner for their private student loans. Learn more about the benefits of having a cosigners here.

Complete the FAFSA

Regardless of what type of funding you’re considering, you will generally still want to complete the FAFSA to take advantage of all the financial aid opportunities available to you before borrowing any type of loan. Check out your federal loan options first and then turn to private loans only when necessary to cover additional school costs. Do your research to get a full understanding to know your options and be an informed consumer. If you do consider private loan options, not all private loans or lenders are the same. You may find significant differences between private loan providers, so find one that best fits your needs and circumstances.

Undergraduate students graduate with an average of $30,000 in student loan debt. This amount can feel overwhelming. However, there are several tips for saving money on student loans. You can do it while you are in school and after you graduate.

Saving Money on Student Loans Step 1: Only Borrow What You Need

The first step is to only borrow what you need to cover your college costs. Many students over-borrow and end up with more student loan debt than they are able to pay back after graduation. Grants and scholarships usually don’t have to be paid back as long as you continue to meet their requirements. However, these forms of financial aid generally won’t cover all of your college costs. Looking at your federal loan options is your next step. Federal loans will have to be paid back with interest. However, they usually offer borrowers lower interest rates and more flexible terms. Make sure you take advantage of these options before considering a private student loan. Private student loans are a great option when you’ve exhausted all federal aid options and still have college expenses. As with any loan, make sure you understand the terms and conditions.

Saving Money on Student Loans Step 2: Make In-School Payments

The second way to save money on your student loans is to make payments while in school. Most loans will give you a deferred payment option. This means you don’t have to make any payments on your student loans while you’re in school or during your grace period. While it sounds like a good option, interest accrues on your loans during this time. That could mean a larger bill at repayment. If you budget to make full principal and interest payments while still in school, you’ll save the most money over the life of the loan, but that isn’t always feasible for everyone. Another great way to save money is to make interest-only payments while in school. This monthly payment will be much less than a full principal and interest payment, but will set you up for success when you get to repayment.

Entering Repayment

Once you graduate your loans will go into repayment following your grace period. That means you will start making payments toward your full principal and interest payments until the loans are paid off. Federal loans have several repayment options to fit your budget, but keep in mind the lower your payment and the longer your loan term the more interest you will pay over the life of the loan. Make sure you are aware of and take advantage of any borrower benefits your loan servicer offers, such as a lowered interest rate for auto-debit payments.

Refinancing or consolidating your student loans may also be a good option for you.

These are a few of the main ways to save yourself money on your student loans while you’re in school and after you graduate. Knowing your options and paying what you can along the way will set you up for a successful future, free from student loans.

Have you decided to go to graduate school? You may be researching how to pay for tuition and other expenses. You have another decision to make as well – what to do about any undergraduate student loan debt you may have.

If you attend graduate school at least half-time, your loans can be deferred. That means you don’t have to make payments. Although that will provide immediate relief, there are other long-term financial implications to consider. It’s important to look at the kind of undergraduate loans you have before determining how to proceed.

What are the different types of education loans and their in-school interest rate charges?

Federal Subsidized Loans – With these loans, the federal government pays the interest while you are in school at least half-time. An in-school deferment on subsidized loans means you won’t move into repayment until you leave school.

Federal Unsubsidized Loans – Some or all of your federal undergraduate student loan may be unsubsidized, which basically means that you are responsible for the interest, even while in school. You can still defer your payments if you attend at least half-time. But, the interest continues to build, and is capitalized at repayment. Capitalization is unpaid interest that your lender adds to the principal balance of a loan. Future interest then accrues on the larger balance. That can add up.

Private Loans – These loans are taken out from banks, credit bureaus, and other lending organizations. You can generally defer private loan payments while in school at least half-time. However, interest accrues and capitalizes at repayment as well. More information about private loans is located in U-fi From Nelnet’s Frequently Asked Questions.

Tip: Paying any of the interest on private loans or unsubsidized loans each month while in graduate school can help. It can amount to significant savings in the long run.

How do I find out about my undergraduate student loan and my in-school options?

You can go to the National Student Loan Database (NSLDS) to obtain information about your federal undergraduate student loan. There, you will see the types of loans you have and the terms of each. You can also see the federal loan servicer(s) to whom your loans have been assigned. To find out about your private loans and servicers, check with your lender. Federal and private loan servicers work with you during school. They are also responsible for billing, collection, and information services provided throughout your undergraduate student loan repayment period.

You may wonder how servicers will know that you are in school and eligible for deferment. Your federal servicer(s) receive notification of your in-school status. This happens when your school reports enrollment information as part of their regular administrative procedures. Federal servicers automatically place you in deferment status and notify you. Make sure your private loan servicers know you are in school. Contact them and submit any required information, if needed.

Tip: Your servicers can advise you about the best in-school payment options. For example, working at a non-profit organization or at certain income levels may put you on a different repayment track for federal loans. It’s wise to take advantage of your servicers’ individualized counseling before making any decisions about how to handle your loans before, during, or after graduate school.

Do I have other loan management options for my private loans?

If you took out private loans as an undergraduate, you may want to explore whether refinancing your loans into one new private loan is a viable option before entering graduate school. If your undergraduate private loans have higher interest rates than those currently available, or if you would like to combine multiple loans into one loan, refinancing may be a good choice for you. Private refinance loans are based on credit and you may need a cosigner to get the best rate. Refinance loans usually offer in-school deferment options if you attend school at least half-time. Interest accrues and will be capitalized at repayment.

Be cautious about including federal loans in a refinance loan. Even if the rate is lower, you will lose loan forgiveness, income-driven repayment options, and some other features available only in federal programs.

What about the loans I’ll take out while in grad school?

Since subsidized federal loans are not available to graduate students, interest accrues on both federal and private loans while you’re in school. If you are unable to make interest payments on all of your loans while in graduate school, consider paying interest on the highest rate loan(s) first. Any progress you can make on paying interest will put you in a better position when you move into loan repayment.

Talking with your federal and private loans servicers can help you determine the best options in your specific situation. Education loan management can seem complicated. Your servicers can look at your accounts and provide information about the best choices for you.