No one wants to think about their credit score. It's boring at best, and for many people, the topic of credit scores can be confusing and even anxiety provoking. But being aware of your credit score -- and in particular, your FICO score -- is an important component to your long-term financial health.
One solution for grads buried in debt: student loan refinancing. The process of refinancing student loans can lower interest rates and monthly payments, allowing borrowers to potentially save thousands of dollars over the lifetime of their loans. While this seems like a good deal, is student loan refinancing a smart decision?
It's a lot more fun to celebrate college graduation than it is to develop a student loan repayment strategy. So if you're a new grad with federal loans, you'll likely end up on the default standard repayment plan, which requires you to pay a fixed amount every month for 10 years until your loans are paid off.
The continued growth of student loan debt in the United States has reached staggering numbers of more than $1.2 trillion and 40 million borrowers. Those pursuing a medical, dental, MBA or law degree have to deal with a serious price tag that is significantly higher than the national average undergraduate balance of $29,000.
Those currently in repayment often opt into automatic payments to make life easier and to take advantage of a rate reduction. Although this passive option provides some student loan relief, there are options that could potentially save you a lot of money and shave a few years off of your repayment terms.