Introduction
Student loans can be a hassle to
work with. In most cases, your student loans will have built up over 5 to 7
years and you will discover that it is time to start thinking about refinancing
your student loans. There are many ways to hold on to your money while
refinancing, but most of them do not involve save $200 or $300 per month. There
are some easy ways that you can save money when refinancing student loans.
Student loans are a huge part of
most graduates' debt. Whether you have federal or private student loans,
refinancing can be your best option for getting rid of them and paying less
interest down the road.
There are many different repayment
options available to refinance student loans depending on how long you've been
out of school and your monthly income.
Do
you really need to refinance?
If you have student loan debt,
refinancing is an option that can help you save money. But before you
refinance, you need to know whether it's right for you.
How much should I save?
The amount of money that you can
save by refinancing depends on your current interest rate and how long you have
until your next payment. If your current interest rate is lower than the rates
available through the government program, refinancing may not save as much as
it seems at first glance.
If you're looking to refinance your
student loans, you'll probably want to ask yourself a few questions first.
- Do I want to consolidate my student loans?
- Do I need to refinance?
- How much am I saving by refinancing?
What
kind of loans do you have now?
If you have federal student loans,
you can consolidate them into one loan. If you have private student loans, you
should contact your lender to see if they offer a consolidation service.
If you have both federal and private
loans, consider consolidating both types of loans into one new consolidated
loan. You might be able to get a lower interest rate on your new consolidated
loan than you could on separate loans.
You may also be able to save money
by refinancing your current student loans with another lender instead of paying
off the original lender at 100% of the amount borrowed.
Check
your rate without a hard credit pull.
If you already have a student loan,
there are many ways to save money. You can refinance your student loans or
consolidate them, or you can even get a personal loan to pay off your student
loans. But the easiest way is to check your rate without a hard credit pull.
Here's how:
Check your rate without a hard
credit pull.
If you have multiple types of debt
and are looking to refinance, make sure that all the loans are listed in one
place. It's possible that some of the loans may be listed under another
company's name, rather than yours. If so, it means they were taken out by
someone else and not consolidated into your name. To find out which lenders
held on to these loans for you, review your credit report and look for any that
have been paid off or discharged in the past five years (or sooner if they're
still reporting).
Do
some research into companies that offer refinancing.
There are several ways to refinance
student loans:
1.
Pick a lender. There are many lenders out there and they all have different
lending criteria. Before you apply for refinancing, do some research into which
lenders offer the best deals, what their interest rates are and how much
they'll charge in fees.
2.
Find a better rate. If you can't find a lender that offers the lowest rates
possible, consider refinancing through a bank or credit union. Banks and credit
unions tend to offer better terms than other lenders because they don't have as
much competition for your business — however, this also means that if you do
decide to refinance through one of these institutions, you may be paying higher
interest rates or getting fewer perks than someone who refinanced through an
independent lender like SoFi or Earnest Loans .
3.
Shop around for savings. If you're looking at refinancing multiple loans, it's
worth shopping around for the best deal on each one individually instead of
consolidating them into one loan with one lender for all your loans.
Find
out how much you could save by refinancing.
When you refinance your student
loans, you can save money. Here's how.
1. Get a lower rate
The first step is to get a lower
rate on your student loans. Your loan servicer will have a range of options for
you to choose from, but the best one for your specific needs depends on what
type of borrower you are and whether or not you have other debt in addition to
student loans.
2.
Consolidate your current loans into one new loan
If you have multiple types of debt,
all of it should be consolidated into one new loan with a single lender. This
will reduce the total amount of interest paid over time and make it easier to
manage your student loan payments. The best way to do this is through an online
application with a direct mail lender like SoFi or CommonBond, who can simplify
the process of consolidating loans and determine which types of existing loans
are eligible for consolidation through their servicers (loan servicers).
Apply
for refinancing.
The best way to get a student loan
refinancing is to apply for it. You can do this online, by mail or by calling
the lender directly.
If you are interested in refinancing
your student loans, you will need to:
1.
Calculate how much you can afford to pay each month on your student loans.
2.
Compare interest rates and fees associated with different lenders to find the
best deal.
3.
Look at other factors such as credit history, income and current debt loads
before making a decision on which lender to use.
Consider
extending your loan term.
There are a number of things you can
do to save money on student loans that you may not have thought about. When it
comes to student loan refinancing, the most effective way to lower your monthly
payments is to extend the term of your loan.
The reason why this works is because
when you extend the term of your loan, it lowers the interest rate that will be
charged on your balance. This means that as long as you make all of your
payments on time, you will be able to pay off your principal faster than if you
had just started paying off your principal when the term ended.
0 Comments