When students and parents borrow wisely, a Student Loan can be an effective way to bridge a college savings gap. Students are able to borrow money to cover costs of tuition, room and board, and other related expenses and pay it back with interest at an agreed upon later date.

But what if your original loan agreement no longer suits you, and you’re having trouble paying down your debt? One option is to refinance your Student Loans. Refinancing can help you better manage your loans by lowering monthly costs, combining multiple loans into one or adjusting your repayment term. Paying off your debt in a timely manner can potentially save you thousands of dollars in interest.

Here are eight instances in which you should consider refinancing your student loans.

You Have Private Student Loans

Student loans are offered through the federal government and through private lenders. Private lenders may include banks, state credit agencies, credit unions and other financial institutions. There is often little or no incentive to refinance a federal student loan.

Federal student loans, which include subsidized and unsubsidized Federal Stafford Loans, cannot be refinanced into another federal student loan. That means if a borrow refinances a federal … Continue reading..