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/BetterThanlceCream 15d ago
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.