With student loan refinancing rates hovering around record lows, many graduates are taking the opportunity to save money on their college debt.
Highly qualified borrowers who refinanced a short-term loan were able to save nearly $ 17,000 in general interest over the life of the loan according to recent reliable analysis… They also cut the debt repayment schedule for years because they lowered the interest rate.
If you’re wondering if refinancing is right for you, it’s easy to get an idea of the estimated interest rate. You can compare rates from 12 lenders to refinance student loans without affecting your credit score in the Credible online marketplace.
How Refinancing for a Shorter Term Could Save You Nearly $ 17,000
Student loan borrowers who were refinanced for a shorter maturity on the Credible marketplace between November 1, 2019 and December 1, 2020, saved an average of $ 16,943 in repaying college debt.
The average loan amount was USD 67,142. Monthly payments increased minimally (by $ 100), but borrowers were able to shorten the maturity by 41 months. This is partly due to lower interest rates: in this sample of borrowers, the interest rate fell by 2.29%, which led to significant savings in interest in the future.
Use Credible’s student loan calculator to find out how much money refinancing to a lower interest rate can save – all without a tough loan request.
Current student loan refinancing rates remain close to historic lows
Student loan refinancing rates are close to historic lows, according to Credible. The 10-year fixed rate loan rates averaged 3.65% for borrowers with a credit rating of 720 or higher during the week of July 5th. This is below 4.32% last year alone. For a 5-year variable rate loan, rates averaged 3.05%, one of the lowest in 2021.
Since lenders do not charge any upfront fees like refinancing fees for student loans, the amount of money you can save by refinancing depends a lot on the interest rate you receive. If you do decide to refinance, be sure to compare the interest rates on student loans from multiple lenders to ensure you are getting a competitive offer.
Use the rate table below to see the real interest rates offered by private lenders and fill out a simple form on the Credible to website find out your rate in minutes… Shopping by shopping will ensure that you get the lowest rate for your situation.
How to know if student loan refinancing is right for you
Refinancing student loans can save you thousands of dollars over time, but this is not for everyone. For example, not recommended refinance your federal student loansas it will strip you of certain federal benefits, such as withholding and deferred payments, income-based payments, and even student loan forgiveness.
But if you have private student loan debt – and you can qualify for a lower rate – then refinancing might be a good idea. You can even qualify for an additional discount on automatic billing. This will help you pay off your loan faster, lower your loan payments and save money on interest over the life of the loan.
Learn more about refinancing a student loan at Credible. You can contact a knowledgeable loan expert which will answer any questions you may have about repayment plans and help you decide if refinancing your student loan is right for you.
Have a financial question but don’t know who to contact? Write to the Safe Money Specialist at email@example.com and your question can be answered by Credible in our Money Expert column.