If you are having trouble making your monthly payments, consider refinancing your student loans. Refinancing is a process where you take out a new loan to pay off other loans. Generally, the new loan has a lower and/or fixed interest rate, which can save you thousands of dollars in interest and help you pay off your loans more quickly.
Refinancing is only offered through private lenders, although both private and federal student loans can be refinanced together. If you refinance your federal loans, however, you will lose the benefits of these loans, such as the ability to participate in income-driven repayment plans.
Refinancing is generally only available to borrowers with good credit scores, a decent income, and a history of making on-time payments. It’s typically seen as an option for students who have already made a large amount of payments on previous loans, thus proving their credit worthiness.