Independent Student Loan Consulting


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Paul S. Garrard
Founder and President
PGPresents, LLC


Refinancing Student Loans

More than a few borrowers we work with have questions about refinancing their student loans. Quite simply, refinancing is paying off multiple loans (federal and/or private) with a new private loan. While refinancing can be an important part of the repayment strategy for some borrowers, it is clearly not for everyone, nor will all borrowers interested in refinancing be eligible.

  • The main advantage to refinancing is the opportunity to secure a lower rate and thus subsequent savings on total repayment costs.
  • The main disadvantage, at least for borrowers refinancing federal loans, is giving up the repayment and postponement flexibility inherent with federal loans that you simply will not find on a private loan, even with some of the recent added benefits some lenders have added to their product offerings. This is one reason refinancing during dental and medical residency training can be risky.

Refinancing is most definitely not a scam, and there are a number of reputable private lenders that offer refinance loans to eligible borrowers. While eligibility requirements vary by lender, in general, you can expect each to want to see the following:

  • Evidence of good credit
  • Solid employment history with steady income
  • Favorable debt to income ratio

Clearly the enticement for refinancing is to lower the rate on your student loans in an attempt to save money in repayment. However, a recent industry report indicates that the average interest rate provided this past year on refinance loans is nowhere near the rates often promoted by lenders in their marketing materials. In addition, based on this same industry report, more than half the applications for refinance loans this past year were denied.

PGPresents can help you determine if refinancing should be part of your overall repayment strategy through our extremely popular “On-Call” marquee service. In addition, we can help you select the lender that is right for you with our comprehensive private loan refinance document. Unlike some other organizations, we have no ties with private lenders and thus do not promote one lender over another, rather our process is completely objective and not biased in any way.

For more information, contact PGPresents at or 877.201.6162.