Refinancing Student Loans Can Make A Big Difference

If you already have student loans, you may be paying much more than you need to.  If you currently have federal loans or other private loans, you can refinance all of your loans into just one loan (known as loan consolidation), and get a better rate.  A better rate means big savings when it comes to your monthly payment.  When your overall cost of borrowing is reduced, you can pay off those loans faster.  It's smart to get quotes from multiple lenders, to ensure that you are getting the best possible rate.  Check out our refinancing calculator to see how much you could save.

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We've done the hard work to narrow down the choices.

 

 
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Lets see how much you could save by refinancing

STEPS TO USE CALCULATOR

  1. Put in your current loan balance and current interest rate. 
  2. Next input your "new interest rate" - Your new interest rate can be determined by getting quotes from different lenders - Get Quotes.  Your new rate is determined by your income, credit score, and other factors.  If you want estimate for now, rates range from 2.6% - 7.3%. 
  3. Lastly, decide what term (in years) you want to pay off your loan. This is up to you, and is dependent on your current situation. Typical repayment terms are 5, 7, 10, 15, and 20 years. If you want to pay off your loan sooner you should choose a shorter term. Keep in mind that a shorter term will have higher monthly payments.
  4. Now that you have determined all your variables, click calculate to see your potential savings.
loansmack Refinance Calculator
Amount of Your Current Loans ($):
Current Interest Rate (%):
New Interest Rate (%):
Student Loan Term (Years):
APPROXIMATE SAVINGS:
Monthly Savings: $
Total Savings: $

 

FAQs about refinancing

+ What is student loan refinancing?

Student loan refinancing is the process under which you can obtain a new student loan at a new interest rate. The process involves paying off your old loan by obtaining a new one. Through the process you can potentially get better loan terms (repayment terms, interest rate, etc.), that could save you thousands of dollars over the life of your student loan.

To see how much you could save by refinancing view our refinancing calculator.

+ Should I refinance my student loan?

Refinancing your student loan could be a good idea if you already have private student loans or have federal loans, but aren’t taking advantage of federal programs (forgiveness or income-driven repayment plans). In most cases you will also need good credit and stable income in order to qualify for refinancing.

Refinancing could save you thousands of dollars over the course of your loan, if you are able to get a lower interest rate.

To see how much you could save by refinancing view our refinancing calculator.

+ How do I qualify for refinancing?

In order to qualify for refinancing, most student lenders look for a credit score in the mid-600s and above, and steady income (having a current job or have a signed offer to start a job).

+ Who are the best lenders to refinance with?

The best lender for you will depend on your situation and what your priorities are. For many people, their highest priority is the interest rate they can get. If this is your main priority, then we recommend that you apply for quotes with multiple lenders to see which lender quotes you the best rate.

If you are a borrower who is more concerned about repayment flexibility, (in the event of a change in job status or you are considering going back to school) you should choose a lender that provides payment postponement options or income-based repayment.

Getting your quote: When you apply for a refinancing quote, most lenders will do a soft credit check (this will not affect your credit score). Getting quotes from multiple sources will help you decide which lender is right for you. When you are ready to choose a lender and actually apply for refinancing, some lenders may perform a hard inquiry. Typically when you apply for multiple loans in a short window of time, credit bureaus will consider it “rate shopping”, which has less effect on your credit score than multiple hard inquiries.

+ Will refinancing cost me anything?

No. When you refinance your student loan, it will not cost you. Always read the fine print with your lender, to make sure you understand all the terms of your loan agreement.


A little more on each lender


 

Access to multiple lenders at once

  • 5, 7, 10, 15, 20 year repayment terms.
  • No origination fees or prepayment penalties.
  • Can apply with & without a cosigner; cosigner release offered.
  • Read our full review.

 

Highly regarded for customer service

  • 5, 7, 10, 15, 20 year repayment terms.
  • No prepayment penalties.
  • Interest-rate reduction of 0.25% if you enroll in Auto Pay.
  • Read our full review.

 
 

Quick application process

  • 5, 8, 10, 12, 15 year repayment terms.
  • No origination fees or prepayment penalties.
  • Can apply with & without a cosigner; cosigner release offered.
  • Read our full review.

 
 

Known for low rates

  • 5, 7, 10, 15, 20 year repayment terms.
  • No origination fees or prepayment penalties.
  • Loan Amounts:  Minimum of 15,000 – No Maximum.
  • Read our full review.

 
 

Provides help through career services

  • 5, 7, 10, 15, 20 year repayment terms.
  • No origination fees or prepayment penalties.
  • Can apply with & without a cosigner.
  • Read our full review.

 
 

Allows spouse loan refinancing

  • 5, 8, 10, 12, 15 year repayment terms.
  • No origination fees or prepayment penalties.
  • Can apply with & without a cosigner; cosigner release offered.
  • Read our full review.

 
 

Quick & easy Refi process

  • 5, 8, 12, 15 year repayment terms.
  • No origination fees or prepayment penalties.
  • Can apply with & without a cosigner; cosigner release offered.
  • Read our full review.

 
 

Known for repayment options

  • 180 different repayment options, from 5-20 years.
  • No origination fees or prepayment penalties.
  • Loans are serviced in house.
  • Read our full review.

 

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