How to get the lowest student loan refinance rate
Student loan borrowers currently have an unprecedented opportunity to get a student loan refinance at an extremely competitive price. If you qualify for loan refinancing at the historically low rates currently available, you may be able to significantly reduce your payment and make your loan repayment less expensive over time.
See if you can get a lower rate by refinancing your student loans today. Only plug in some of your information (like your current student loan balance and credit score, etc.) to find your rate in minutes.
Before deciding if you should refinance your student loansit is helpful to research the current rates available as well as learn some of the steps you can take to maximize savings that come from the refinancing of student loans.
4 ways to get the lowest interest rate on student loans
These four steps are the key to saving as much as possible while rates are near their all-time low.
- Take a look at the prices
- Use a student loan calculator
- Improve Your Credit Score
- Consider applying with a co-signer
1. Take a look at the prices
Lenders set their own policies to determine who the most competitive interest rates are offered to. Get quotes from multiple lenders so you can see their terms and get the loan at the lowest cost.
One of the easiest ways to shop is to visit Credible to display a rate table that compares the rates of several lenders at the same time.
2. Use a student loan calculator
It is important to understand exactly how the different student loan refinance offers would affect both your monthly payment and your total costs. This is because some loans with longer repayment terms have lower monthly costs but charge higher total interest over time. Others pay off faster and come with higher monthly payments, but are generally cheaper.
Credible is online student loan refinance calculator can help you compare different offers from various lenders to see which one is really the best.
3. Improve your credit score
Lenders offer more competitive rates to borrowers with good credit.
For example, Credible’s data on current loan refinance rates shows that borrowers with a credit score of 780 or higher could qualify for a 10-year fixed rate refinance loan at an average interest rate of only 3.77% compared to borrowers with a score between 640 and 679, who would pay an average rate of 5.09%.
4. Consider applying with a co-signer
If you present yourself as a high risk borrower to lenders because your credit is not perfect or you don’t have a lot of income, you may not be able to get a loan refinance or you may not be. eligible only at a higher rate. A co-signer with strong financial credentials could help you secure better loan terms so that you can maximize the savings that refinancing at today’s low rates can provide.
You can find a list of lenders who offer student loans with co-signers here.
Today’s refinance rate
In the current economic climate, refinancing has given borrowers the best chance in years of securing a loan. cheap refinance loan. In fact, according to Credible Monthly monitoring of student loan refinancing rates, the rates for 10-year fixed-rate loans and 5-year variable-rate loans are very competitive by historical standards.
In November 2020:
- The average prequalified rate on a 5-year adjustable rate loan for a buyer with a minimum credit score of 720 was 3.25%, which is down from October and last year.
- The average prequalified rate on a 10-year fixed rate loan for a buyer with a minimum credit score of 720 was 3.95%, which is also down from October and last year.
Although these are average rates, a more or less competitive rate may be offered to you depending on your financial references. To find out what rate you would pay if you refinanced in today’s low-interest market, visit Credible to compare student loan refinancing rates from several lenders immediately without affecting your credit score.