Student Loan Refinance Rates Today | Save by Refinancing Your Student Loans
With total numbers of student loan debtors at 40 million and counting, student loan refinancing is becoming an increasingly popular way to tackle student loans.
Finding the best student loan refinance rates could mean that you’ll pay your loan debt off sooner, and with much fewer headaches.
Refinancing provides opportunities for lower monthly payments, better interest rates, and the ability to pay multiple loans in one monthly payment.
Of course, the challenge is finding the best student loan refinance rates to ensure that you get the most savings from the refinancing process.
Fixed vs. Variable Student Loan Rates
Aside from choosing the right lender to refinance with, you’ll also want to decide whether you want fixed or variable student loan refinance rates.
If you choose a fixed rate, it means that the interest rate will stay the same throughout the life of the refinance loan.
You’ll know exactly how much interest you will be paying, making it easy to plan ahead for your financial future and see the effects of making additional payments.
Conversely, a variable rate can change over time depending on the interest rate index. The benefit is that variable rates are often offered at an introductory rate, although this is subject to change.
Even though consolidating with a variable rate sounds risky, there are regulations in place to ensure that lenders aren’t overcharging, called a variable loan cap. This provides assurance that, no matter what, the variable rate will never exceed a certain percentage,
Choosing between fixed or variable rates will largely depend on personal preference. If you want stability and consistency, a fixed rate will likely be the best choice.
On the other hand, if you have the financial flexibility to adapt to changing rates, a variable rate loan could provide the best overall savings on the life of the loan.
Refinancing Federal & Private Student Loans
Before researching for the best student loan refinance rates, you’ll want to know exactly where you stand with federal and private student loans.
If you have a mix of both, it’s important to include the ability to refinance both loan types in your decision-making process.
Not all lenders will allow federal and private loans to be bundled together under the same refinance plan. Make sure you know exactly what type of loans you have and ensure that your lender of choice will refinance both before you begin the application process.
It’s also important to consider that refinancing federal student loans may get you a better rate, but you’ll lose a few advantages in the process.
Using a private lender to refinance these loans means forgoing federal loan options like public service forgiveness and income-based repayment plans, so you’ll want to make sure you don’t plan on using these options.
Student Loan Calculators
Using a student loan calculator can help you determine whether refinancing is right for you—including how much you could potentially save by getting a lower interest rate.
Many of the best student loan calculators will also provide visual aids like graphs and charts to show the long-term benefits of getting a lower loan rate through the refinancing process.
Along with student loan refinance calculators, many lenders offer additional resources, like unemployment payment protection if you lose your job, educational guides for the refinancing process, and even discounts on additional financial products.
If you’re new to the refinancing process, having access to these types of resources could make the refinancing process go much more smoothly.
Is Student Loan Refinancing Right for You?
Refinancing is a valuable tool for borrowers looking for lower interest rates, more manageable monthly payments, and an easier repayment process.
Is refinancing right for you? Depending on your financial situation, finding the best student loan refinance rates could certainly be a great way to minimize the stress of paying off thousands of dollars.
Make sure you do your research and compare multiple lenders to find not only the best student loan refinance rates, but also the best terms, benefits, and educational resource to find the best lender for you.
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