Student Loan Refinancing
How to Pay off Student Loans Fast
Managing Your Student Loan Debt
Parent PLUS Loan Refinancing
Why Parents Should Refinance Student Loans
How to Refinance Parent Student Loans
Parent’s Guide to Student Loans
When to Apply for Private Loans
How to Pay for College Tuition
Applying for Student Loans Guide
Student Loan Process Checklist
Student Loan Refinance 101
Student Loan Glossary
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Let’s face it — you’re busy and who has time to do the research and legwork to find out how to save money on student loans? It sounds like a good idea, but is it actually worth the hassle?
If you are a college grad who has a professional career and not a lot of free time, you may be wondering if refinancing your student loan debt is worth the time. You want to do the research and pick the right lender, but can you save enough money to make it pay off in the long run?
Let’s take a look!
Similar to refinancing your home, student loan refinancing entails gathering up all of your student loans, both federal and private, and bundling them into a new consolidated single loan.
When you refinance, you are working with a private lender to bring all of your loans together in a new loan with a new interest rate and loan terms that you can negotiate to fit your lifestyle. Using a private lender means that you have to qualify for your new loan with a great credit report and solid income to get the cheapest interest rate.
Depending on the difference between your current average interest rate and the new interest rate that you qualify for — this is where you stand to save a ton of money over the life of your loan.
The good news is private lenders that specialize in student loan refinancing don’t charge an origination fee or application fee, so it’s a great way to impact your monthly budget without incurring any unnecessary charges.
When you decide that refinancing is the right solution for you and your financial future, then it’s time to gather up your loan information to get a clean, unblemished picture of where you are so that you can negotiate the best deal. You want to understand your average interest rate from all of your student loans, as well as your total interest paid and average terms.
Next, it’s important to assess your creditworthiness. Private lenders take a more critical look at you and your finances than the federal government do when they award financial aid. They want to know that their money is being used by a person that they can trust to repay it on time with no problems. They are going to look at four things:
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Compare interest rates and perks to find the best lender for you.
Next comes the research where you contact viable private lenders and collect information about the rates they are currently charging as well as the terms, offers, and specials that they advertise. Sounds like a hassle, doesn’t it?
Well, there’s a better way, Purefy’s Compare Rate tool is a one-stop, easy, and free way to do all of that research (with no impact on your credit score) in about 15 seconds – flat.
Depending on when you took out your student loans and whether they were federal or private, there is a good chance that you may have paid interest rates that are much higher than they are today.
It’s not unheard of to have loans with interest of 6% to 7% or even more. In fact, some Parent PLUS Loans are even higher.
The good news is that today’s interest rates are at historic lows and with the outstanding economic recovery underway, that fact is no longer set in stone. Just how long interest rates will remain this low is anybody’s guess.
That’s a good reason to take advantage of the refinancing rates for student loans before interest rates start to rise.
So let’s get down to brass tacks — can refinancing your student loans really save you enough money to make the hassle pay off?
When we calculate refinance savings, we have to start with how much you are currently paying.
Two components impact that number and make a difference in how you structure your new refinanced loan.
Let’s look at each side of the equation:
The Federal Reserve (The Fed) meets nine times per year to review the interest rate which then will impact the rates being charged for new loans and changes to variable rates on existing loans.
So, how does that look when you calculate refinance savings?
In the above example, assuming excellent credit to secure the best interest rates, the savings are over $12K for the life of the loan. It also saves over $100 per month in monthly payments or $1,200 per year.
First, gather up your loan statements for all of your federal and private student loans. Each one should tell you the interest rate, term, and outstanding balance.
When examining your own financial situation, you will need to summarize and average the interest rate on all of your existing loans. With different interest rates and loan terms, you will need to find a common set of criteria to compare.
Since the goal is to simplify the process, there is a way to calculate refinance savings by using an online calculator to calculate your present loans, as well as your potential new loan. With just a little effort, you can have a straightforward comparison for use when looking at actual quotes.
Student loan refinancing combines your current loans into a single loan with a new rate and term. See how much you can save by entering your loan information below, or by getting quotes from multiple lenders using Purefy’s rate comparison tool.
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When you look at how to save money on student loans, most people are interested in their savings in dollars and cents. But there are a ton of other benefits that you can take advantage of when refinancing.
If you currently have a cosigner on your student loans and are at a place where you are ready to assume responsibility for your debt, refinancing can be a great way to reestablish the loan without the cosigner.
When you consider refinancing your student loan debt, you have to weigh the positives against the negatives and decide if it’s a good decision for you. It isn’t always the right answer for everyone and not everyone can qualify.
You may be a good candidate for refinancing your student loans if:
You may want to forego refinancing if these situations apply:
Those would include:
It seems people are always looking for the best time to refinance their student loans. The truth is, any time that works for your personal situation is a good time.
The lower the interest rates, the more money you stand to save. Now is a great time because interest rates are at all-time lows and the savings potential can be enormous based on your current loans.
And remember, there is no limit to how many times you refinance. If you refinanced a few years ago but are in a position to gain an even better interest rate because of improved credit or a lower Prime Rate, go for it.
Different than a mortgage refinance, student loan refinancing doesn’t have associated origination fees, application fees, or closing costs. There’s no need to allow for that when looking at a student loan refinance.
It starts with finding the best rates!
Refinancing student loans is very popular right now with lots of people jumping at the chance to save money. There has been an increase in private lenders advertising all over the internet. Without a doubt, today there are tons of lenders specializing in student loan refinances that are eager to compete for your business.
So how do you weed through the noise and find the best options to choose from?
You can look at the generally advertised rates that are available, but to really understand where you would fall, you need to get personalized estimates from the various lenders based on your actual circumstances.
To do that, you have one of two choices — you can do all the research yourself, visit each website, fill out your pre-qualifying information each time, and receive an individual quote that you then can add to your growing pile of information.
Or you can use Purefy’s Compare Rates tool and have all of the information at your fingertips in about two minutes. It’s fast, it’s easy, and it doesn’t cost a thing.
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As a busy professional, you don’t have time for wasted effort or inconclusive results!
Once you decide that refinancing is an effective way to restructure your student loan debt, you want a fast, easy, and uncomplicated way to get to the answer you’re looking for so that you can move forward.
Luckily, Purefy has developed a comparison tool using advanced technology that takes your financial information and presents it to a group of industry-leading private lenders for real-time quotes. Having already helped over 200K people compare rates and secure close to $1.8 billion in financing, our rate comparison tool is second to none at finding the best options based on your specific details.
Here’s how it works:
The entire process can be completed in about 15 minutes and there are never any application or origination fees. In addition, there are no prepayment penalties with any of Purefy’s lenders.
It sure can be! Depending on the difference in the interest rate you qualify for, student loan refinancing can save you large sums of money over the life of your loan.
Successfully refinancing your federal and/or private student loans can be straightforward with final approval and fund dispensation complete in record time.
Start with your basic information and see if refinancing would help you achieve some of your personal financial goals. Ask yourself these questions:
When it comes to how to lower student loan interest, it’s often helpful to talk to an expert. That’s why Purefy offers free consultations with our student loan advisors. Experts in the field, Purefy’s advisors are available when you schedule a call to discuss how refinancing works, ask questions, learn how to compare rates, and get a sense of whether this process is right for you.
Our student loan advisors are top-tier and are a big part of why Purefy earned NerdWallet’s 2021 Best-of Award for Best Student Loan Refinancing Overall. Let them help answer your questions.
Sometimes achieving life-long goals requires restructuring to make things happen. When you initially took out your student loans, there’s a good chance they fit your lifestyle at that particular moment.
But things change. You may now be focused on completely different goals like home and family. Student loan refinancing is, fortunately, one aspect of your overall financial outlook that can be easily restructured to save you money through lower interest rates, as well as customized terms that can allow for a speedy payoff or lower monthly payments.
Today, you’re a busy professional and you know what you want. And, equally important, you want it in a straightforward, easy-to-navigate process that intuitively adapts to your next move. That means finding the answers and support you want in one location.
Designed for just such convenience, Purefy’s Compare Rates tool shows you just how to lower student loan interest. Now you have access to actual prequalified rates that provide you with the quotes you need to make the best decision, as well as a team of student loan specialists that can provide the guidance you want.
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