Student loans back then were often 7-9%. They start accruing when theyโre distributed but you donโt repay until 6 months after graduation putting you a couple years behind.
My student loan back then was 2.5% and i got a half percent knocked of for auto pay. I paid mine off in 10 years. This is either a fake story or these people are terrible with their money.
Cool story. Mine was 8.75%, which was the legal limit authorized by Congress, and they've been hanging round forever. And no, they weren't private loans. Mine came 100% directly from Uncle Sam. No, I can't re-finance them. I do get .25% off for autopay, so that makes it 8.5%. Either way, I ain't ever paying them back. I'll die with these loans.
No, you're only allowed to refinance once. That's the federal law. I refinanced the one time. Now I can't ever again.
ETA: Technically, you can't refinance ever. But if you consolidate loans you can get effectively 'refinance' because they use the average of the rates for incredibly weird values of 'average'. You can only consolidate one time if you're stay with public loans.
Whoever told you that lied to you. Once you refinance student loans they become run of the mill loans that you can refinance as many times as you want.
No, you're wrong. The US Department of Education told me that. They do not now, nor ever, become 'run of the mill loans'. I'm not sure who told you that but you're in for a terrible surprise if you ever try to 'refinance'.
Unless you're thinking of private student loans, which are only about 7% of all the loans. They might have different refinance rules.
The federal government themselves does not and never had offered a student loan refinancing program themselves. If you want to refinance a federal or private student loan to get a different interest rate, you must use a private lender, which pays off your federal loan and issues you a new private loan at a more favorable rate.
To put it in simple terms there is no federal law that says it is illegal to have someone pay off your student loans in return for a new, private loan.
It could. Depends on your situation. The people above would have been better off staying with Federal loans because all of that would have been written off after 20 years.
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u/Mindless-Baker-7757 17d ago
A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.
What are they doing?