Key factors of student loan refinance you should consider:

  1. Know that it is not just about the lowest interest rates. It's about "effective interest rates" which is how much you are going to pay back. With Federal programs, you could pay back less than what you borrowed.
  2. Think about the long-term implications. You never know what the future holds, there may be unfortunate circumstances such as losing your job or health issues. When you refinance to a private loan, you lose many potential benefits of federal loans such as loan forgiveness. In the event of any unfortunate circumstances, your co-signer or collateral will have to cover it.
  3. Understand what you are giving up with Federal programs before you sign up to refinance because you can always refinance later.

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