At $1.4 trillion and counting, national student loan debt has been steadily increasing. Fortunately, refinancing companies are helping some borrowers get out of debt faster.
By refinancing your student loans, you could snag a low interest rate and pay off your debt well ahead of schedule. Are you having trouble making your payments? Refinancing could help with that, too, by extending your repayment period to lower your monthly student loan bill.
Though student loan refinancing is a lifesaver for some borrowers, the process isn’t always the best idea for everyone. To see if you could benefit from refinancing your loans, make your way through the flowchart below.
Should I refinance my student loans?
Before making any changes to your student loan plan, make sure you understand the pros and cons of refinancing.
One of the biggest benefits of refinancing is lowering your interest rate. Use this refinancing calculator to see how much you could save by nabbing a lower interest rate.
You could even choose a shorter repayment plan to get out of debt faster, or you could extend your repayment period to 15 or 20 years to lower your monthly payments.
But federal student loan borrowers, beware: Refinancing federal loans means you turn them into private debt. Doing so means you lose access to federal programs like income-driven repayment plans and Public Service Loan Forgiveness, so make sure you won’t need these options before you refinance.
In the end, deciding to refinance comes down to whether or not you’d benefit from the process. Whatever move you make is a means to conquering student loan debt once and for all.
If you’re considering student loan refinancing, see if you’re eligible to refinance with these top lenders.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Rates (APR)||Eligible Degrees|
|Get real rates from up to 4 Lenders at once
Check out the testimonials and our in-depth reviews!
|2.56% - 7.40%||Undergrad & Graduate||Visit SoFi|
|2.57% - 6.32%||Undergrad & Graduate||Visit Earnest|
|2.58% - 8.12%||Undergrad & Graduate||Visit Lendkey|
|2.80% - 7.02%||Undergrad & Graduate||Visit Laurel Road|
|2.54% - 6.65%||Undergrad & Graduate||Visit CommonBond|
|2.90% - 8.34%||Undergrad & Graduate||Visit Citizens|