Refinancing rates are low right now, but you should probably hold off on taking advantage of them until the interest-free payment pause ends after August 31, 2022. If you refinance now, you’ll have to start making payments immediately, and your loans will start accruing interest.
I recommend that you use this time to raise your credit score and pay down credit card debt and personal loans. That way, when payments restart, you’ll be able to get the best student loan refinancing rates.
If you decide to refinance, remember that doing so will eliminate certain federal benefits and repayment options. If you lose your job or your health fails, you won’t be able to qualify for an income-based repayment plan. And depending on the lender, you may not be able to temporarily suspend payments with a deferment or forbearance.
Learn More: What Credit Score Do You Need to Refinance Student Loans?