Should I Refinance my Student Loans?

1. Amount of debt. If you're looking at a $60,000 tab, that's going to add up to a lot of interest over time. Anything you can do to lower the interest rate will be a good idea. One thing to be careful of is making sure you check the rate on each loan in case you have multiple loans all bundled by the same lender. Some borrowers have a $7,000 loan with a rate of 4% and another $8,000 loan with a rate of 3%, so consolidating both of those at 3.5% isn't going to do you much good. Lenders can be a little tricky with their presentation, so you want to be very clear on your loan amount and how everything is structured.

2. Refinancer. Don't just go with the first loan consolidation offer that hits your inbox, because not all financiers are made equal. Even a reputable company might not be the best choice for you, depending on your loan amount and what your degree is in. For example, Splash Financial is a solid refinancing company that's especially good for people out of medical school. Whatever you're looking to do professionally, there might be an industry-specific consolidator you should look at. This is a really important decision and you owe it to yourself to do the research before pulling the trigger on some bank you've never heard of.

3. Don't stop at refinancing. Refinancing can definitely save you money. You know what saves you more money? Paying off the debt once and for all. Like I said, I'm a big advocate of lowering your interest payments, but you still have to make those monthly payments and do whatever you can to get the debt paid off as quickly as possible. I understand this is easier said than done—it's all but impossible to land a high-paying job right out of college. Whether it's working more or spending less, I encourage you to focus on paying that debt down and becoming financially free as soon as possible.