A monthly student loan payment can prevent you from achieving financial results such as paying off your credit card debt or even buying a home. Fortunately, you can lower your monthly payment through refinancing thanks to low interest rates.
Refinancing rates for student loans hover around historic lows. The week of July 5, rates on 10-year fixed-rate loans averaged 3.65% among borrowers with a credit rating of 720 or higher who refinanced their student loans on Credible. That’s down from 4.32% just a year ago.
Interest rates on five-year, variable-rate loans averaged 3.05%, one of the lowest in 2021.
Please be aware that it is not advisable to refinance federal student loans at this time, as this will strip you of federal loan protection, for example student loan forgiveness and income-oriented repayment. But if you have private student loans, now is the time to take advantage of the lower interest rates to save on your monthly payments.
See how much you can save on student loans in the analysis below. When you’re ready to start shopping at interest rates on student loans, visit Credible to compare offers from several lenders without affecting your credit rating.
Here’s How Real Student Loan Borrowers Cut Their Monthly Payments By $ 250+
Real borrowers have been able to significantly reduce their monthly student loan payments by refinancing through a reliable market. according to analysis which ran from November 1, 2019 to December 1, 2020.
The study showed that by extending the loan term by an average of 53 months, borrowers were able to reduce loan payments by $ 253 per month. The average loan amount in the sample was US $ 70,163 and the annual interest rate decreased by 2.05%.
If you are looking to refinance your private loans in order to reduce your monthly payment, it is important to choose the lowest interest rate possible for your situation. You can compare rates with multiple student loan refinancing lenders by filling out a single form on Credible.
Use the student loan calculator to see how much you can save
Easily see how much you can save on your monthly payment using the student loan calculator. like this one from Credible… When in doubt whether it is worth refinancing student loans, it is helpful to evaluate the new loan terms. Here’s how:
- Collect your loan documents. You need to know the remaining loan amount and the amount of time you have left to repay it, as well as the amount of the monthly payment and the interest rate.
- Estimate the new interest rate. You can see what student loan rate you can qualify for without affecting your credit score on Credible.
- Enter your details into the calculator. The Credible Student Loan Refinancing Calculator will show you the new repayment terms including your monthly savings and the total interest paid.
Still not sure if refinancing is right for you? Contact a loan officer at Credible to discuss your options and decide how best to pay off your student loans.
Have a financial question but don’t know who to contact? Contact the Safe Money Specialist at email@example.com and your question can be answered by Credible in our Money Expert column.