It’s a Great Time to Refinance Your Student Loans

Refinancing now could provide a lower interest rate on your loans and/or the ability to move from a variable rate loan to a fixed-rate loan. Refinancing to a lower rate means less interest paid over the life of the loan, leaving you with more money to put towards other financial goals.

Those who may benefit from refinancing student loans include borrowers who have:

• Good credit scores and credit history. Lenders typically look for a score of 650 or higher. Even if you don’t have perfect credit, if you have someone with a strong credit history willing to cosign, it can help increase your chances of being approved, and could also help you qualify for a lower interest rate.
• Stable monthly income. Consistent, recurring monthly cash flow gives lenders the security of knowing you can make your student loan payments each month, in addition to meeting your living expenses and other financial obligations. If you’re not yet employed, you can provide a written job offer as proof of expected recurring income.
• Private student loans. While you can refinance both federal and private student loans, it’s important to consider that when you refinance federal student loans, you’ll permanently lose access to certain federal loan benefits such as public service loan forgiveness and income-driven payment plans.

The decision to refinance student loans is an important one. If you’re a good candidate, refinancing while interest rates are low could save you thousands.  Click here to see how much you could save!