Save thousands of dollars when you refinance student loans
Studen loan refinancing can save borrowers thousands of dollars in interest over the life of the loan. It simplifies the process by having just one bill to right each month instead of multiple.
Both federal student loans and private student loans are eligible for refinancing. Typically, a lender like the ones you see below will combine the loans you have into one new loan at a lower interest rate. This lets you pay the loan off quicker and save money in process.
Is Student Loan Refinacing right for Me?
Student loan refinancing can be used with both federal student loans as well as private loans. If there are multiple loans involved, it generally also means “consolidating” the loans, which just means grouping them all into one easy payment.
The common types of student loan refinancing are:
- Private student loans – This makes sense for the highest percentage of borrowers because private student loans are often at higher interest rates. Refinancing these loans offers an immediate savings. Also, private student loans are more likely to have variable interest rates, and refinancing can lock in your low rate so that it does not change.
- Federal grad and Parent PLUS loans – these loans are usually in the 7-8% range. So still quite high, and refinancing will often save money. Also, parents with stable income and graduate students who have a job usually qualify for refinancing.
- Other federals loans – For unsubsidized federal loans issued between 2006-2013, the interest rate was 6.8% APR. Borrowers with good credit can qualify for rates as low as 2-3%. For borrowers with less-than-perfect credit, the refinanced rate may not be substantially low enough to be worthwhile.
Below are representative savings from refinancing student loans:
Finding a personal loan can be difficult because in addition to some lenders only approving consumers with certain types of credit, many also only lend in specific states and for specific purposes. For instance, one lender may be a great option for a consumer in Alabama, but if that same person moves to California, he will be denied a loan from the same lender.
We’ve made it easy for borrowers to understand exactly which lenders are most likely to approve them. Just scroll up and select the options that apply to you, and you’ll see the lenders changed based off of your selections.
Student loans that make the most sense to refinance
- Pay less interest over the life of the loan
- Reduce monthly interest payments right now
- Simplify billing when consolidating multiple loans
- Opportunity to remove a cosignor from loans
- Transfer Parent PLUS loans into your name
Types of student loans you may NOT want to refinance
- Federal loans that might be forgiven
- once you refinance, this is not possible. So hold off on federal loans that you think might be forgiven.
- This may apply to individuals entering the non-profit sector to work.
- Loans that already have very low interest rates
- Loans that you have already paid down to $10,000 or less
- If you expect to pay the loan in the next year or two, it may not be worth it to refinance
- Refinancing may still save you money; however, its best to concentrate on the larger value loans
To speak to one of our free Advisors, call us at:
THE OPERATOR OF THIS WEBSITE IS NOT A LENDER, does not make credit decisions, and does not charge any application fees. This Website does not constitute an offer or solicitation to lend. This Website provides a service wherein we submit the information you provide to one or more lenders and attempt to match you with a lender. This service is not available in all states, and the states serviced by this Website may change from time to time and without notice. Providing your information on this Website does not guarantee that you will be matched with a lender or approved for a loan. The lender may perform a credit check or otherwise verify the information you provide. Not all lending partners offer loans up to the advertised amount and not all lenders can provide you with the loan amount you requested. Loan amounts are determined by the lender based on individual creditworthiness. All financial terms of the loan will be provided to you by the lender. Loan terms, conditions, and policies vary by lender, state, and applicant qualifications. For details, questions, or concerns regarding your loan please contact your lender directly. In some situations, faxing or emailing of documents may be required. Cash transfer times may vary between lenders and may depend on your individual financial institution. Loan repayment periods could vary by lender and location. Not all applicants will meet the lending criteria to qualify for a loan.
Borrow Responsibly – A short-term loan is ideally used for short-term financial needs only, not as a long-term financial solution. Late or missed loan payments may be subject to increased fees and interest rates. Lenders may use collection services for nonpayment of loans. We recommend seeking credit counseling if you have financial difficulties.