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Both graduate and undergraduate student loans can be refinanced. Private and federal student loans can be refinanced as well. There is also no limit on the number of times you can refinance.
Simply put, refinancing student loans is one of the easiest ways you can save money by doing nothing. Chances are, when you got your student loan, whether it was last year or 20 years ago, rates have fallen since then.
Recently, the Federal Reserve slashed interest rates to 0.00%. This is great news for those with student loans, but only if you take advantage of the lower rates with a refinance.
This is why refinancing is so important. It won’t cost you anything, and you’ll instantly lower your APR, which equates to lower monthly payments and more money in your pocket. For example, if your current student loan APR is 4% on a loan balance of $100,000, and you refinance to 2%, you’ll save $2,000 per year just by refinancing!
At the end of the day, refinancing your student loans is a no-brainer. Essentially, you’re replacing a higher interest rate with a lower interest rate, and this means you’ll save more money!
Here are the key reasons why refinancing student loans is paramount:
According to Brookings University, there’s currently $1.5 trillion in student loan debt in America. This is a shockingly large number, but what’s often neglected is the interest rate that Americans are paying on their student loan debt.
It’s simply a fact that the majority of the $1.5 trillion in student loans is not currently financed at the best available APR. That’s why it’s so important to always stay on top of your finances and check to see if you’ll save money by refinancing your student loans.
One of the most common misconceptions about refinancing student loans is that applying or refinancing will somehow negatively effect your credit score.
This is completely false. For the student loan refinance companies listed on this page, there is no harm to your credit score for checking your refinance rate or applying. In fact, your credit score can actually improve when you successfully refinance because you’ll pay less every month and ensure that you’ll always be able to make your payments on time.
You can also refinance as many times as you want. Remember, since that the Federal Funds interest rate, the benchmark interest rate set by the United States Federal Reserve, is currently 0.00%, interest rates can really only go up from here.