Check how long it will take you to pay off your student loans. Quickly see the effects of lower rates, extra payments, and different terms on your repayment plan.
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Want to pay off student loans faster while saving on interest? See your real-tike prequalified refinance rates with our 2 minute comparison tool.
Interest is the amount of money paid regularly at a particular rate for the use of money borrowed from a student loan lender, or for delaying the repayment of a student loan debt. In essence, it’s the “extra” money you have to pay back the lender for the opportunity to use their money to go to college (or pay off your existing student loans by refinancing).
Your repayment term is the amount of time (typically in years) that you are scheduled to repay your loan in full.
The loan principal, or principal balance, is the total amount still owed on a student loan or refinance loan.
Student loan refinancing is the process of taking one or multiple student loans and refinancing them into a new single loan that often include new terms — such as a lower interest rate, a new monthly payment, and a new repayment length.
If you have high interest federal student loans or private student loans, getting a lower rate through a student loan refinance will reduce the total interest you pay (all else being equal).
Obtaining a lower interest rate can decrease your monthly payments, but so could refinancing to a longer repayment term. By selecting a longer term, you can ensure that your monthly payment is as low as possible to provide some relief to your monthly budget. Plus, you’ll have more expendable cash for other necessary expenses.
When refinancing your student loans, you can also choose a quicker repayment term than the Standard Repayment Plan of 10 years. By choosing a shorter term, you can pay off your loans sooner and get rid of them for good — while maximizing your savings on costly interest.