Student Loan Status

Your options for handling student loans depends on the status of those loans. It matters whether they are federally guaranteed or private. Additionally, your credit score and the current status of the loan payments can dictate your options.

Student loans may be consolidated through Sallie Mae. This can be especially appealing if you currently are paying on multiple student loans that have variable interest rates. A single fixed-rate loan can replace your current student loans. There are considerations as to whether you qualify.

• Your credit score may impact your ability to refinance your student loans. If you have a poor credit score, then you might need a cosigner to help you qualify.
• If your student loans are in default, then you may find that lenders are unwilling to refinance those loans. You may be limited to private lenders that may charge a higher interest rate.

If your payment status is current and you have a reasonable credit score, then refinancing your student loans may be a practical option. Falling behind on your student loans does not mean that you cannot get help. Sallie Mae frequently provides forbearance options which can help recent graduates postpone payments until they are settled into a new job.

Whatever your financial situation, make sure that you keep your student loans in good status and out of default. Federally-backed student loans may have more flexible repayment terms as well as more forgiveness for late payments.