More students than ever — 69%, at last count — are leaving college with student debt.
Some graduates don’t think twice about the aspect of that debt that is really costing them money — the interest rate.
On federal loans, your rate is set by the government, and you get no savings — regardless of how good your credit is, or whether you have a good job. Private loan interest rates are generally even higher.
Did you know that there is an easy — and proven — way to save money on student debt?
What’s more, if you have good credit and steady income, the savings could be startling.
In this article, we’ll talk about student loan refinancing, and how Purefy is helping borrowers navigate this increasingly popular financial strategy.
Getting a great student loan refinance rate used to be hard
Most top lenders offering student loan refinancing have useful websites where you can fill out an application and see what rate they will offer you.
But how do you know you are getting the best deal?
How does filling out five loan applications sound? (Marginally better than going to the dentist?) That used to be the only way to compare lenders and save the most money.
Purefy has changed things. The power of choice is back in the hands of student loan borrowers, where it belongs.
With one simple form, Purefy can check your rates with the best lenders — and do all the hard work for you.
Your available rates, terms, and monthly payments will be presented to you in one easy, sortable chart — with total transparency. From there, if you like what you see, you can choose a lender and complete their online application in 10-15 minutes.
This is key: you must compare rates if you want the best deal.
You shouldn’t even consider shopping for a loan based on advertisements or —top 5 lender” reviews. That’s the #1 way to lose money, and that’s why Purefy is here to help.
Why refinance student loans?
When you refinance student loans, you take out a new student loan with a private lender who pays off your existing student debt. Your current loans, in effect, get merged (—consolidated”) into one new loan, with a great new rate and the repayment term of your choice.
Refinancing can help you:
- Save money: a lower interest rate means big savings
- Pay off your loans faster: use your savings to pay off your loan faster
- Lower your payment: pick a longer term and watch your monthly payment drop
There are a few things to consider first. For instance, if you have federal student loans, you will give up access to your federal benefits like income-driven repayment plans and loan forgiveness when you switch to a private lender. But if you don’t plan on using those programs — or aren’t eligible — the decision to refinance may be easy.
Is a refi right for you?
When you refinance, your rate is generally based on your credit score, your income, and other factors like the type of degree you have. To get the lowest rates that lenders advertise, you will need to have excellent credit and meet other criteria (which vary from lender to lender).
That said, you don’t necessarily need a perfect credit score to get a great student loan refinance rate in 2020. Rates have come down significantly as the Federal Reserve continues to lower rates.
The best part? It only takes a few seconds using Purefy’s rate comparison tool to see what rates you may qualify for from the best lenders — with no effect on your credit score.
You can even check back as often as you like to see if rates have changed — which they regularly do.
Putting student loan borrowers first
At Purefy, we understand the tough set of financial goals that most graduates are facing.
Whether it’s saving for a house, balancing your checking account as you work your way up in your career, or planning to have children, student loans have a big impact on your ability to pursue your dreams.
Our tools help you understand your options, so you can make an educated decision on whether refinancing is the right financial strategy for you.
We feel so strongly about making sure you have the tools to succeed, that we are currently offering free student loan refinance consultations with our award-winning team of experts. Schedule your consultation today, and get your questions answered.