With a refinance, the goal is to secure a better rate and payment terms. This means you would pay less each month and for a shorter amount of time to one lender instead of more money for a longer period of time to one or more lenders.
If financially you can afford to keep paying the same amount you were paying before you refinanced, even better. That’s because you’re throwing more at the principal each month than you were before and avoiding more interest.
Remember, you’re refinancing to get a better rate and payment terms. If that’s not what you’re being offered, do not refinance. Only by doing your homework, will you be able to find the best deal for you. Slacking off on your research could put you deeper in the hole than you were before. Take your time, look at all of the options that are offered out there and compare them against each other and your current situation.
9. Stay Motivated
Student loan debt can seem overwhelming. For many people it’s a debt that takes years, sometimes decades to pay off in full. Do not give up. Each payment made gets you that much closer to the end goal of being debt-free. Just keep thinking about how great it will be to not have that monthly payment to make and what you will be able to do with that money once it no longer has Sallie Mae’s name on it.
