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What are the tradeoffs to refinancing my federal loan with a private lender like Earnest?

When looking to refinance a federal loan, it is important to consider the protections of your current loan and understand what protections you may be gaining (or giving up) by moving to a private lender like Earnest.

By moving from a government loan to an Earnest loan, you lose access to the government’s income-based repayment (IBR) programs, such as Pay As You Earn (PAYE), aimed at people who are experiencing financial difficulty or earning a low salary relative to their student loan balance.

It is important to note that federal loans that would qualify for forgiveness through the government's Teacher Loan Forgiveness program, Public Service Loan Forgiveness program, or Perkins Loan Cancellation and Discharge would no longer qualify for forgiveness once refinanced with Earnest.

However, private lenders like Earnest are often able to offer rates that are around half the lowest rates of federal loans. Earnest also offers unparalleled payment flexibility and personalized service for the life of your loan. 

Check out our blog post on the topic for more information.

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