Refinancing debt to consolidate multiple loans into a single one is a standard of debt management. There are many possible reasons to take such a step, including to get access to a more favorable interest rate, to reduce the monthly payments by stretching them out over a longer repayment period or to be able to make all the payments to one loan servicer.

When it comes to college loans, however, the refinancing picture is especially complex because today’s student loans are actually a combination of federal and private loan programs. To help alleviate explosive levels of college debt, federal student loans are getting access to multiple forms of flexible repayment plans. Some of these even include terms that allow unrepaid student loans to be forgiven after 25, 20 or even 10 years in some circumstances.

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