In some cases, if you were lucky enough to get a federal student loan, you’re better off than someone who found one privately. This means that if anything ever happens to you and you have to refinance your student loans, it is much easier, and more beneficial to have a federal loan than a private one. Federal loans entitle you to a few things that private loans don’t. Any interest paid on a federal loan is completely tax deductible. This is a huge perk if the interest rates were high at the time of signing. Also, federal loans are a lot more lenient when it comes to lending. If the banks are feeling the pain because of a bad economy, the federal government will still be around to loan money.

When you’re looking to refinance your federal student loans, there may be a few conditions you have to meet. First of all, you can’t still be in school. This means that if your university qualifies you as a full time student, refinancing your federal loan will more than likely be a no-go. Also, you must still be in the grace period of your loan. All loans have a period of time that they can be reevaluated after you’ve started making payments. Also, in some cases, you have to have a minimum outstanding balance on the loan. You obviously can’t refinance a loan for $50. Talk to your academic advisors about loan refinancing, as they can help you talk to the right people and fill out the right forms to help you continue making payments on time.