What are the benefits of refinancing student loans?
A lower interest rate.
Opportunity for faster repayment.
One loan payment for all your federal and private loans.
All of the above.
All of the above.
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QUESTION 2
What are the benefits of consolidating federal student loans?
One loan payment for all your federal loans.
Preservation of federal loan protections and benefits.
Fixed monthly payments.
All of the above.
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All of the above.
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QUESTION 3
True or false? You can consolidate private loans with the federal government.
True
False.
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False. You can only consolidate federal loans with the federal government.
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QUESTION 4
True or false? Refinancing a federal loan with a private lender will result in forfeiting federal student loan benefits.
True
False.
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True. Once you refinance a federal loan with a private loan, it becomes a private loan, which does not offer federal loan benefits such as income-driven repayment and loan forgiveness programs.
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QUESTION 5
True or false? Refinancing only makes sense if you can obtain a lower interest rate.
True
False.
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False. Though refinancing is a great way to lower your interest rate, you can also refinance to extend the term of your loan, which would help you lower your monthly payments. Keep in mind though that extending the term will result in your paying more interest over the life of your loan.