Total student loan debt in the US has reached $1.5 trillion with 44 million borrowers paying back loans. Even more shocking is that about 8 million Americans could qualify for lower student loan interest rates, but many don’t take advantage of this.
If you’re wondering if you should refinance your current student loan, there’s one number that might convince you. Statistics show that borrowers can save an average of $18,600 when they refinance.
What Is Refinancing?
In case you’re wondering, refinancing a student loan means exchanging a current loan for a new one with lower interest rates. This reveals the power of interest. A one or two percent interest rate reduction can have a serious impact on how much you have to pay.
When you refinance, you basically have two options to leverage the savings:
- Lower your monthly payments
- Shorten the overall term of the loan (pay it back faster)
Plus, refinancing doesn’t hurt your credit score. It may even help your credit rating if you make all your payments on time.
Got More Questions?
Even though the potential savings are undeniably attractive, you might be wondering about other factors. Good for you, since they count. For instance, you might ask:
- Can I refinance my federal student loan?
- How does my credit score affect refinancing decisions?
- Does it help if I have an income when it comes to refinancing?
- What if I’m still enrolled in school?
Get the answers to these questions and more with this infographic. If you have a specific concern, schedule a consultation!
