Student loan refinancing just got absurdly cheap

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Student loan refinancing rates have fallen even lower.

Here’s why and what you need to know.

Student loan refinancing: rates drop even more

Student loan refinancing rates have now fallen to 1.81%.

Why? The Federal Reserve has cut interest rates for the third time this year and lenders have lowered student loan refinancing rates to a near-term low. This is great news for student loan borrowers who want a lower interest rate, save money, and pay off debt faster.

Here’s how to refinance your student loans.

Student loan refinancing: should I refinance a student loan?

Many borrowers ask: Should I refinance student loans?

If you want to save money and pay off your student loans faster, student loan refinancing is an effective tool. When you refinance student loans, you are swapping your current student loans for a new, single student loan with a lower interest rate.

There are several advantages to refinancing a student loan, including:

  • lower interest rate
  • single monthly payment
  • fixed or variable interest rate
  • flexible loan repayment period of 5 to 20 years
  • a student loan officer
  • pay off your student loans faster
  • to save money

Student loan refinancing: how to apply

If you want to know how to refinance student loans, it’s important to understand how to apply. The process is straightforward and you can apply entirely online.

Step 1: Get the best interest rate

There are several trusted online lenders who can refinance student loans with low interest rates and easy online applications. Compare the best interest rates and loan terms. Most borrowers will refinance their student loans with the lender that gives them the lowest interest rate. Most lenders allow you to check your preliminary interest rate online for free within two to three minutes without impacting your credit score.

Step 2: Use a Student Loan Refinance Calculator

This free student loan refinance calculator shows you how much money you can save when you refinance student loans.

For example, suppose you have $ 85,000 in student loans with an interest rate of 8.0% and a repayment term of 10 years. If you refinance this student loan with an interest rate of 3.0% and a 10 year repayment term, you will reduce your monthly payment by $ 211 and save $ 25,262 in total payments. If you’re a doctor, dentist, or pharmacist with a large student loan balance, your savings can be even greater.

Step 3: Apply online

You can apply online to refinance student loans in 10 to 15 minutes. You can also upload any supporting documents, which may include a copy of your driver’s license, transcripts, recent pay stubs, or a letter of offer of employment.

Student loan refinancing: key questions

1. Am I eligible for student loan refinancing?

The best applicants for student loan refinancing typically have the following:

  • A credit score of 65o or higher
  • Current job or written job offer
  • Stable and recurring monthly income
  • A low debt ratio
  • No history of student loan defaults

If you have bad credit or don’t meet these other requirements, you can apply with a co-signer who has strong credit and income. Your co-signer can help you get approval to refinance your student loan and earn a lower interest rate. Although your co-signer is also financially responsible for the student loan, some lenders allow the co-signer to be released from any financial obligations afterwards.

To maximize your chances of getting approved to refinance student loans, you can apply with several lenders. Since each lender makes a separate underwriting decision, rejecting one lender does not negatively affect your odds with another lender.

2. Can You Refinance Parent PLUS Loans?

Yes, you can refinance Parent PLUS loans. Parent PLUS loans have relatively high interest rates, so refinancing can lower your interest rate and save money.

3. Are there fees for refinancing student loans?

There is no charge for refinancing student loans. There are also no prepayment penalties, so you can pay off your student loans at any time and at no cost.

4. Should I refinance my federal student loans?

You should not refinance federal student loans if you plan to apply for a utility loan forgiveness, income-based repayment plan, or deferral or forbearance options. You can still refinance your private student loans and leave your federal student loans in arrears. Most lenders today offer job protection if you lose your job and want to suspend your monthly payments.

5. How often can I refinance student loans?

Borrowers Often Ask: When Should I Refinance Student Loans? The answer: you should refinance your student loans whenever you qualify for a lower interest rate. There is no limit to how often you can refinance student loans. If you can get a lower interest rate and save more money, refinancing a student loan can be a smart financial decision.

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