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I have two large student loans right now (one private one federal) that are through two separate services. As of now, these loans have recurring payments at different times of the month and have floating interest rates that usually stay around 6-7%. In total, my payments each month going towards loans are about $900 and needless to say I don't have much left over after these are paid. Recent circumstances have made me need to buy a car and this would likely not be possible with the $900/month payments.

If I were to refinance my loans what would be the potential downsides to this? Will I be paying roughly the same interest rates? Does refinancing essentially just push back the date at which my loans are paid in full?

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The devil is in the details. It might be possible to refi the loans, have your interest rate reduced, and fixed. You might also refi under worse terms then you have now. Until you find an offer, it is impossible to answer.

Your question seems to imply that you have to have car payments in order to buy a car. That is simply not true. You can buy a decent used car for cash. How do you get that cash? How about working two or three jobs, or selling some stuff?

Welcome to adulthood.

  • Or, rather than working two to three jobs you can find a way to impact a huge number of people and increase income that way. I recommend the writings of MJ Demarco for reference. You are, however, correct in pointing out that OP doesn't necessarily need a loan. – Jonast92 Mar 19 at 12:43

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