No matter what the ads say, lenders lend money to make money. Lenders offering opportunities for students to leave their federal loan and enter into a new private loan arrangement should read contracts carefully.
In fact, this is such a huge decision, grads should consult an expert. Among the people student loan borrowers can consult are financial planners, student loan attorneys and financial aid officers at their alma mater.
Some lenders are offering enticing interest rates now. Refinancing may be a good idea for those with loans disbursed when interest rates were higher. But grads who are considering refi should keep in mind that once they leave the federal student loan program, they can't get back in and regain benefits they lose when they leave.
In this presidential election season when new programs are being discussed that may offer even more borrower benefits for both new borrowers and those in repayment, it may be prudent to wait on the decision.