 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: What Are the Downsides of Refinancing a Student Loan?\n-----------------------------------------------------\nThe biggest downside to student loan refinancing is the loss of federal loan benefits. Federal student loans come with unique protections for borrowers, which can provide a safety net if you lose your job or face unexpected medical bills. Benefits you'd lose from refinancing a federal loan include:\n*   **Generous deferment and forbearance options**: Federal student loans allow you to pause payments for up to three years in some circumstances, which is longer than what private loans typically allow. If you have subsidized federal loans, you won't be charged interest during a period of deferment, which prevents your balance from growing in that time.\n*   **Income-driven repayment**: If your income dips, or you're unable to afford federal loan payments on a long-term basis, you can sign up for one of four repayment plans that calculate your monthly bill based on a percentage of your income. Private lenders generally do not offer this option. When you apply to refinance, lenders want to see that you have sufficient income to repay the loan in full.  \n    If there's a possibility you'll earn less, change careers or experience other life events that affect your ability to make full payments during your repayment term, it may be best to avoid refinancing federal loans. That way, you maintain access to income-driven repayment if you need it.\n*   **Forgiveness programs**: Federal loans also offer unique forgiveness options to some borrowers. If you work full time for a government agency or qualifying nonprofit, you could have your federal loan balance forgiven after 120 payments through the Public Service Loan Forgiveness program. Some teachers can receive forgiveness over a five-year period through the Teacher Loan Forgiveness program. END