Although it’s hard to go wrong with any of the top-rated student loan refi companies on this page, these are the top two choices for 2020:
Both graduate and undergraduate student loans can be refinanced. Private and federal student loans can be refinanced as well.
Simply put, refinancing student loans is one of the easiest ways you can save money without a catch. Chances are, when you got your student loan, whether it was last year or 20 years ago, rates have changed 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 it 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.
Moreover, a lot of modern day student loan refi companies understand that sometimes life is complicated. As such, some companies will let you skip up to 1 payment per year without penalties or interest!