Financial Counseling Certification Program (FiCEP) Practice Exam

Which of the following is NOT typically included in student loan refinancing considerations?

1. Interest rate

2. Option for deferment

3. Loan repayment terms

4. Cosigner release

The correct answer is: Option for deferment

In the context of student loan refinancing, the considerations typically include factors such as the interest rate, loan repayment terms, and cosigner release options. While refinancing can lead to different repayment terms that may be more favorable to the borrower, the option for deferment is not usually a standard feature associated with refinancing. This is because refinancing often consolidates existing loans into a new loan, and the terms of that new loan may not include deferment options that were available on the original loans. Therefore, understanding that refinancing usually aims to streamline repayment and potentially lower monthly payments or total interest costs, the consideration of deferment is less relevant in this context. Borrowers often seek refinancing to secure better rates or terms rather than looking for ways to postpone payments, which deferment would entail.