citibank student loans

Can I refinance my consolidated federal student loans?

I already consolidated my federal student loans with Citibank. I have a subsidized loan and an unsubsidized loan. My interest rate is 6.6% and I understand that rates have since dropped (I consolidated around 2006). Can I resell my loan to another bank or lock in a lower rate some other way?

Refinancing is different than consolidating. You are only allowed to consolidate your loans once. If you attempt to refinance with a private lending institution then they are no longer considered “federal loans” and your rates will most likely be higher. You also won’t be able to deduct the interest paid on your taxes anymore and they won’t be able to be deferred due to continuing education or unemployment

StudentLoans.PersonalFinanceAndInvestment.com

Tagged with: • • • •

Filed under: Student Loans