The U.S. Department of Education’s suspension of student loan interest doesn’t necessarily translate into an opportunity to refinance your federal student loans, but it may be an opportunity to secure a lower interest rate for your private loans.
Keep in mind that there is no federal refinancing option.
The only way to refinance federal student loans is to go through a private lender. You’ll lose federal protections, such as postponement options like the current interest waiver. Federal Student Aid also offers several very popular income-driven (IDR) plans. If your income has been affected by COVID-19, you can enroll in an IDR plan to lower payments to as little as $0 per month.
However, if you currently have private student loans, now may be a good time to refinance to remove a co-signer or to secure a lower rate. Not all private lenders are offering postponement options during the pandemic, so check the terms carefully before applying. IonTuition includes vetted offers from community refinancing lenders for qualified borrowers.
Visit IonRefinance on your IonTuition portal to learn more if refinancing is right for you.