Student loan refinancing rates drop again to record low: How to find your rate

There has never been a better time to refinance your student loans at a low interest rate. (iStock)

College debt is a burden on young adults working toward financial milestones such as: B. to save for a home purchase or to invest in retirement. Fortunately, it is possible for college graduates to pay off student loans faster and save money on the interest so they can meet those personal financial goals.

With student loan rates hitting record lows, it’s a good time to start refinancing your personal student loan. For example, a borrower with $ 40,000 in student loan debt who refinances into a new 10-year fixed-term loan and lowers their interest rate from 5.57% to 3.57% could have more than $ 4,600 over the life of their loan save up.

Use Credible’s student loan payment calculator to see how much you could save on your private student loan with a lower interest rate. And when you decide a refinance is right for you, compare the rates of multiple student loan companies at the same time on Credible’s Student Loan Marketplace.

WITH REFI RATES FOR STUDENT LOANS NEAR RECORD LOWS, CALCULATE YOUR SAVINGS

How to Refinance Student Loans at Record Low Interest Rates

If you’ve been thinking about refinancing your personal student loans, there is no better time to do it. Student loan refinancing rates fell to a record low in the week of June 7, 2021. Borrowers with a credit score of 720 or more who refinanced student loans with Credible saw the following interest rates:

• 3.57% for 10-year fixed-rate loans, Which corresponds to the record low in the week of May 17, 2021.
• 2.92% for 5 year floating rate loans. This is a decrease from 2.96% last week and the lowest interest rate on these loans in all of 2021.

With that in mind, it’s important to be aware of the risks currently associated with federal student loan refinancing as it will result in the loss of federal safeguards such as income-based repayment plans, COVID-19 forbearance, and potential student loan forgiveness. But since private student loans don’t offer this protection, refinancing private college debt is a breeze. How to refinance your private student loan:

1. Check rates with multiple lenders for student loans
2. Choose the best deal based on interest rates and other factors
3. Officially apply for your new student loan

10 OF THE BEST STUDENT LOAN REFINING COMPANIES

1. Check the refinancing rates for student loans with multiple lenders

Just as you would shop for the best deal on a new car or new kitchen appliance, you should compare several private student loan rates to ensure you are getting the lowest interest rate for your situation.

You can visit an online loan marketplace like Credible to pre-qualify for student loan from multiple lenders by completing a single form. This does not affect your balance.

2. Choose the offer that will help you achieve your financial goals

Good credit borrowers can get several student loan refinancing offers from different lenders. While some offers will help you lower your monthly payments, others may save you more money over the life of your loan. When comparing offers, consider the following factors:

• Interest rate. Since there are no fees for refinancing your student loan, your interest rate is the most important factor in calculating the refinancing costs. They want your interest rate to be lower than what you are currently paying.
• Term of the loan. A shorter loan term means higher monthly payments, but costs you less interest over time.
• Monthly payments. Make sure you can afford your new monthly student loan payments before you decide on a new loan.

You can use Credible’s refinance calculator to see how much you can save over the life of your new loan.

DO I NEED TO REFINANCE MY FEDERAL STUDENT LOANS?

3. Make a formal application and receive your grant

After you have decided on a loan offer, submit a formal loan application. During this step, you may need to undergo a tough credit check and provide the following:

• Proof of identity
• Proof of income
• Current student loan statements

Still not sure whether to refinance a student loan? Contact an experienced loan officer at Credible who can help you figure out the best course of action to pay off your college debt.

BIDEN’S NEW REPORT ON THE GRANTING OF STUDENT LOANS EXPIRES

Do you have a finance-related question but don’t know who to contact? Send an email to the credible money expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert section.

source https://collegeeducationnewsllc.com/student-loan-refinancing-rates-drop-again-to-record-low-how-to-find-your-rate/