Top 5 Reasons To Refinance Student Loans Now

With near-historic low interest rates, there is no better time than now to refinance student loans.

Here are 5 great reasons to refinance student loans now:

1. Refinance Student Loans Reason #1: Get a lower interest rate

Paying 8% for your current student loans?

When you refinance student loans, you exchange your current federal student loans and private student loans for a new, single student loan with a lower interest rate.

Why do you receive a lower interest rate when you refinance student loans?

Now that you are working, have a steady income and have demonstrated financial responsibility, lenders will look at you differently than when you were a student and they charged you a higher rate for your student loans.

From the lender’s perspective, the “you of today” has lower credit risk to the lender than the “you of yesteryear.”

From your perspective, that’s great news because a lender can now likely offer you a lower interest rate when you refinance student loans.

A lower interest rate means lower monthly payments and a lower borrowing cost, which means you can save money and can get out of your student loan debt faster.

You can use the Make Lemonade Student Loan Refinancing Calculator to calculate your potential savings from student loan refinancing when you refinance student loans.

2. Refinance Student Loans Reason #2: Change your student loan terms

Stuck with a variable rate private student loan and concerned about rising interest rates?

When you refinance student loans, you can refinance your existing variable interest rate student loan into a fixed interest rate student loan.

With a fixed rate student loan, for example, you can lock in your monthly interest rate so that your student loan payments never change.

Plus, you may want to increase or decrease the student loan term from your existing student loan to better match your financial situation.

For example, if you currently have a 10-year student loan term, but you want to pay off your student loan faster, you can refinance student loans into a 5-year student loan term, which can enable you to save on the extra interest costs and pay off your student loan faster.

3. Refinance Student Loans Reason #3: Get better customer service

Who doesn’t want better customer service?

We have all experienced poor customer service, particularly from various financial institutions. The last thing you need when you are trying to pay off student loans is a bad customer service experience.

When you refinance student loans, you can refinance with a more consumer-centric student loan company that places high value on customer service.

You can find our top-rated lenders to refinance student loan at the bottom of this page.

4. Refinance Student Loans Reason #4: Combine all your student loans into one single student loan

If you have multiple student loans from different lenders with different interest rates, you can refinance student loans into a single student loan.

It’s cumbersome to have to keep track of the various interest rates, payment addresses and website logins just to manage your student loans.

One of the key ways to pay off your student loans faster is to consolidate your student loans into one single student loan with one single interest rate and loan term, which makes it much easier for you to manage.

When you refinance student loan, you get one student loan, one monthly payment and one interest rate.

5. Refinance Student Loans Reason #5: Join a student loan community and receive new benefits and perks

When you refinance student loans, many of the next generation private student loan companies are offering more than just a student loan.

Today, private student loan companies offer flexible student loan repayment options during periods of economic hardship such as student loan deferment.

When you refinance student loans, some lenders help you find a job to get back on your feet.

Other lenders host free special events like networking sessions, cocktail parties and financial educational events.

This is all part of a growing trend among private student loan companies to create a community of borrowers, rather than just an individual borrower experience.

Refinance Student Loans: Next Steps

And these are just 5 great reasons to refinance student loans….you can check out the top-rated lenders below to learn more about the other benefits when you refinance student loans.


Best Student Loan Refinancing For 2018

Lender
Rates (APR)
Minimum Credit Score

Overview

Variable Rates:2.57% - 5.87%
Fixed Rates:3.49% - 6.32%
Average Savings:$21,810
Minimum Credit Score:None
Minimum Income:None
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$45,000
Loan Terms:5-20 years
Borrower Residency:All States except AL, KY, MS, VT
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:2.51% - 7.55%
Fixed Rates:3.90% - 7.80%
Average Savings:-
Minimum Credit Score:650
Minimum Income:None
Fees:None

Details

Eligible Loans:Private or Federal
Minimum Loan Amount:$5,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:2.55% - 6.01%
Fixed Rates:3.09% - 6.69%
Average Savings:N/A
Minimum Credit Score:680
Minimum Income:$35,000
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$15,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:2.76% - 7.90%
Fixed Rates:3.15% - 8.54%
Average Savings:$15,270
Minimum Credit Score:680
Minimum Income:$24,000
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states, except ME, ND, NV, RI, WV
Unemployment Protection:Yes
Co-signer Option:Yes
1.95% - 4.45%
Excellent

Overview

Variable Rates:-
Fixed Rates:1.95% - 3.95%
Average Savings:-
Minimum Credit Score:Excellent
Minimum Income:-
Fees:-

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$40,000
Loan Terms:5, 7, 10, 15 years
Borrower Residency:Only for the residents of New York City, San Francisco, Palo Alto, Los Angeles, Newport Beach, San Diego, Portland (Oregon), Boston, Palm Beach (Florida) or Greenwich
Unemployment Protection:-
Co-signer Option:Yes

Overview

Variable Rates:2.80% - 6.38%
Fixed Rates:3.50% - 7.02%
Average Savings:$20,200
Minimum Credit Score:680
Minimum Income:None
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:2.72% - 7.46%
Fixed Rates:3.25% - 7.03%
Average Savings:$20,221
Minimum Credit Score:700 (670 with a co-signer)
Minimum Income:$42,000 solo or combined with spouse; $25,000 with a co-signer
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$7,500
Loan Terms:5, 8, 12, 15 years
Borrower Residency:All states
Unemployment Protection:Case by case
Co-signer Option:Yes

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Top 5 Reasons To Refinance Student Loans Now
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