If you have several student loans with different interest rates, you can consolidate everything into a single new loan with one interest rate. Juggling multiple loan payments can be difficult to keep up with, especially when you have multiple lenders. Not to mention, some student loan servicers buy and sell loans, so you could wind up paying different lenders than the original servicer that you used.
This will allow you to have all your student loans in one place so you can be more organized and track your progress better.
One of the best solutions refinancing can provide is a lower rate on your student loans. If you have good credit and a stable monthly income, you can apply to refinance in an attempt to get a much lower interest rate than the one you currently have. This is a wise option, especially if you have high-interest private student loans. With a lower interest rate, you can pay less on your loans overall since more of your payment will go toward the principal balance.
When you consider refinancing your student loans, it’s important to run the numbers beforehand and compare your options to make sure this solution will actually help you pay off your loans faster and/or save more money over the life of your term.
If your minimum student loan payment is too high, it could have a negative effect on your current lifestyle, making it difficult to pay your rent, pay for food, or cover other living expenses. Refinancing provides you with the opportunity to lower your interest rate, which in turn will lower your monthly payment.
You may also have the opportunity to extend your loan term and lower your monthly payments. However, with this option, you may be paying more interest over the life of the loan if you don’t pay it off early since you’ll have a longer term.
The sooner you are able to relieve yourself of student loan debt, the better, right? If you’re able to secure a lower interest rate by refinancing, you may be able to shorten your term and pay off your loans sooner. However, keep in mind that shortening your student loan term often means your monthly payments will increase.
Paying off your student loans faster saves you more money now and in the future because you can cut out thousands of dollars in interest payments that you would have paid for with a longer loan term.
If you feel trapped to your student loan payments and your high monthly payments are preventing you from living your life, refinancing can be a great way to lower your interest rate and reduce your monthly payment.
Let us help! Our lenders offer a variety of options aimed at saving you most money they can.
If you have a Bachelors, Masters, or PhD, you are eligible to refinance your student loans. Lenders generally work with individuals with good credit and who are currently employed.