What is not a good reason to refinance student loans?
You're almost done paying off your student loans. If you've been paying off student loans for a while, you may be close to the end of your repayment term. If you're less than five years away from having your loans paid off, the refinancing process probably isn't going to be worth the trouble.
What is the point of refinancing a student loan?
Student loan refinancing allows you to gather all or some of your loans into one new loan, often at a lower interest rate that may help you pay less over time or provide you with a longer repayment term that will lower your monthly payment.
What are the risks of refinancing student loans?
You'll lose federal repayment options and certain government protections. When you refinance with a private lender, you'll lose access to a number of federal programs that can help if you're struggling to make loan payments, including income-driven repayment, deferment, and forbearance.
Does refinancing hurt your credit?
Whenever you refinance a loan, your credit score will decline temporarily, not only because of the hard inquiry on your credit report, but also because you are taking on a new loan and haven't yet proven your ability to repay it.