How much money can you save by refinancing your student loans? Use our Student Loan Refinance Calculator below to find out.
How To Use Our Student Loan Refinance Calculator
Our student loan refinance calculator will help you determine when, and if, you should refinance your student loans. If you can lower your interest rate, lower your monthly payment and/or shorten your loan term (the length of time it will take to pay back your loans), then refinancing could help you save thousands of dollars over the life of your loan. Our calculator will also show you the new monthly payment for your student loan.
Once you see how much money you can save, plus what your new monthly payment will be, you can make an educated decision on whether or not to refinance your student loans. Below is an explanation of the various terms that you will encounter when using the calculator:
Total Student Loan Balance:
A student loan balance is the amount that a borrower has left to pay back on their loans. Enter the total amount that you have remaining on your student loan, including accrued interest. Due to the accrued interest tacked onto the balance, this amount could very well exceed the dollar amount on your original loan.
Number of Monthly Payments Left:
This number is based off your current loan term. Your loan term is the number of years you will be paying off your student debt. The number of monthly payments you have left can be calculated by taking the number of years you have remaining in the loan term and multiplying that number by 12 months. For example, if you had a 15-year loan term that you have been paying back for 5 years, then you would have 120 monthly payments, or 10 years, left until you have fully paid off your student loan.
Current Monthly Payment Amount:
Your current total monthly payment is the amount that you, the borrower, are required to pay each month until your student loan debt is completely paid off.
It is smart to refinance if your new interest rate is lower than the current interest rate. With a lower rate, you will either lower your monthly payment, shorten your repayment term, or potentially both! Check out the current private student loan refinance rates and see if you may be eligible for a lower interest rate. Enter your potential refinance interest rates under the “New Interest Rate” tab.
Refinance Rate Term:
Your new loan term options may vary depending on the refinance lender that you choose. It is important to note that your loan term length will affect your new monthly payment amount. For example, if you pick a refinance option with a 5-year term, then your new monthly payment amount will be higher than your current monthly payments with your 10-year term loan, since you will be paying back the loan over a shorter period of time. You can choose a refinance rate term under the “New Loan Term” tab.
Should I Refinance My Student Loans?
Everyone’s financial situation is different. Here are a few things to keep in mind when deciding whether to refinance your student loans. If you plan on utilizing the perks of a federal loan program, it’s important to know that with refinancing you will no longer be eligible for federal forgiveness programs. In this case, you may decide that you would prefer to stick with your current federal repayment plan. If your current rate is lower than the market rate or maybe you’re on track to pay off your student loans within the next year, then you may also want to avoid a refinance.
On the contrary, if, after using the student loan refinance calculator, you have discovered that you can potentially save big or pay off your student loans a lot faster than anticipated, then a student loan refinance may be the best move for you.