Consolidating or refinancing student loans is good financial move if it improves your financial health. A well-informed decision is critical to this process or else the risk could become trouble down the road. Before entering into consolidation or refinancing, ask the important questions listed below.

1. Why am I refinancing?

2. What are the strengths and weaknesses of the lender?

3. What are the rates?

4. What is the life term of the refinanced loan?

5. What are the repayment terms?

6. Is a cosigner needed, and does the lender offer a cosigner release?

7. What type of customer service and support does the lender provide?

8. Is there an origination fee?

9. Are both federal and private student loans eligible for refinancing?

10. What are the requirements for obtaining the loan?