Student loan / refinancing general

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Has started programs to help***

So here's the deal...

The student loan rate is generally 7%. Which is fucking terrible. You can refinance at something like 3%. The problem is that the company you refinance with is private. And they can and will fuck your shit up the moment you miss a payment. Where as with the government they give you a lot of breaks, like IBR for example. Also the govt will let you drop all communication for a year before they even start the debt phone calls.

Really, neither is a good scenario, but I'd rather deal with the government than a private debt collector.

You can refinance through most banks, and get a sigifcantly lower interest rate. This can save you a significant amount of money in the long run, but you'll be expected to make your minimum payments under threat of significant credit repercussions if you were to mess up.

If you use Obama's income based repayment plan, you can significantly lower your overall monthly payments for the time being, but the interest rate will remain the same or might even go up depending on whether or not the loan was fixed. Ultimately you'll have more left over monthly disposable income, but can end up paying more money in the long run.

Best plan: Use income based repayment for the time being until you can secure a stable salary and comfortably afford what would normally be your standard payments. Refinance once you reach this point, and take advantage of lower interest.

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Bump for the kids and knawledge

>>1449969

Make a 1-month payment every 89 days and you will never hear a complaint

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>taking out student loans
i hope you at least got a marketable education.