What is Tennessee Student Loan Refinancing and How Does This Work?

What is Tennessee Student Loan Refinancing and How Does This Work?

Many students who have just graduated in 2020 or in recent years look at their student loans and wonder how they will ever manage to pay them back. You may have heard stories of people who laid low financially and paid off their loans in a short period of time but may not feel like this is within your reach. One option you have to simplify the process for paying back your student loans is refinancing your loans. However, if you find yourself struggling financially and have questions about bankruptcy, be sure to talk to a Tennessee bankruptcy lawyer who can help.


The steps for Tennessee student loan refinancing are fairly straightforward. First, you just need to check whether you meet the basic requirements. To qualify for student loan refinancing, otherwise called student loan consolidation, you need to make sure you have loans that are:

  • Federal, not private student loans
  • In the process of repayment or a grace period
  • Are not already a consolidated student loan

These requirements can change when you want to consolidate a defaulted student loan. For these types of loans, you will need to agree to a certain type of repayment plan for what will become a Direct Consolidation Loan. This plan may involve taking portions of your income, choosing how much to pay, or a repayment plan that depends on your income. Do not worry if you have a delinquent student loan. You may still be able to have this type of loan consolidated with an income-driven repayment plan.

After this is all sorted out, you can apply for student loan refinancing to change your multiple federal student loans into a single Direct Consolidation Loan. Tennessee private student loans vary on their rules and you will not be able to consolidate them with federal loans.


One thing that many people see as helpful with Direct Consolidation Loan is the fact that this loan comes with a fixed interest rate. Other benefits of Tennessee student loan refinancing include having a simplified repayment plan. Instead of worrying about different types of repayment plans for different loans with various interest rates, you can focus on one monthly payment at a time.

There are also no fees for consolidating your student loans, so at the very least the option to refinance your loans is of no cost to you. You also gain access to new types of repayment plans that you may not have had before consolidating your student loans. Some of these repayment plans include graduated repayment, extended repayment, and income-contingent repayment.


Trying to manage your student loans in the middle of the stressors of life can be daunting. Consider seeking answers from our lawyer in Chattanooga, Tennessee, and North Georgia if you have concerns related to bankruptcy. Call Tom Bible Law at (423) 690-7712 to speak with a Bankruptcy attorney in Tennessee for a free consultation today. Our legal team of Tennessee bankruptcy attorneys is located in Chattanooga and Tullahoma.

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