As Rates Fall, Should You Refinance Your Student Loans? [Video]

As interest rates start to soften, you may hear more buzz about student loan refinancing as a way to lower your bills.

“Essentially, what it means is you are taking the debt that you owe and you are giving it to another company. They’re going to pay off the debt that you have with the company you currently work with, and then you’re going to pay this new company,” explains Kristen Ahlenius, director of education and advice at Your Money Line, a workplace financial wellness company.

For private loan borrowers who can qualify for a better interest rate, refinancing can shrink your student loan payments with little or no downside. But student loan refinancing comes with a steep opportunity cost if you have federal student loans — even if you can get a lower rate. You’ll transfer your debt from the Education Department to a private lender, and you’ll permanently …