Refinancing can help you save Save Money
When you refinance student loans, you may be able to save money on the overall cost of the loan. This process allows an individual with several student loans to roll all of the individual student loans into one, larger loan.
You can also refinance your student loans with higher interest rates into a new loan with a lower interest rate, if available. Refinancing is generally an option after you are out of school and repaying your loans, but you can refinance during your grace period as well. 
Will You Save Money?
The process of refinancing can help you save money, in some circumstances. If your loan interest rate is higher than what is available now, refinancing can help you to save substantially. Your savings could be in the form of lower monthly payments or paying less for the loan overall. You can consolidate both federal student loans and private student loans.
How Refinancing Works
When you consolidate several student loans, you still have to repay them. However, the new refinanced loan will pay off the original lender and establish a new loan term for you with a new lender. In other words, the new lender repays the original loans you could not pay back and you now will pay the new loan instead.
This process also resets the repayment period. In some cases, this can extend the amount of money you will pay back to for the loan in the long term. For example, if you have a loan due to be repaid in full within five years, but you extend the term to ten years through a new loan, you could be paying more back in interest in the long term. However, consolidating and extending the term of the loan can help you to have a lower monthly payment.
For example, if you have an outstanding loan balance of $10,000 at 6.8 percent interest for five years, you will make a monthly payment of about $197. In total, you will pay $11,824 for the loan, including interest and principle. However, if you refinance to a longer term, say ten years, your monthly payment will be about $115. In total, you will pay $13,810, which includes the principle and the interest. If you need a lower monthly payment, this is the route to take.
Through the process of refinancing, you will only have to make one monthly payment to the new lender, rather than several payments to several lenders. This is one of the key benefits of refinancing.
Is This Process Right for You?
The best time to refinance your student loans is when the interest rate on the loan you have is significantly higher than what is available. Another instance is when you need a lower monthly payment and you hope to extend the terms of the loan to accomplish this.
If you are thinking about refinancing your student loans, it is best to consult several lenders and determine which offers the most affordable plan, including the best terms and interest rates.
Jason Li
To find more information about student loans consolidation, please visit http://www.refinance-student-loans.org/