You are looking at a recent statement from your student loan provider and thinking only if there's a way to reduce paying such high interest. In that case, refinance your student loans might be your best option!
Student loan refinancing is a process by which borrowers like you take their current loans and replace them with loans with lower rates and costs.
The concept behind student loan refinancing is quite simple.
If you have an existing loan and there's another loan being offered. If the existing loan has higher interest rates than the loan being offered, you can choose to take the new loan and use it to pay the balance from your existing loan.
Given that you paid off the more expensive loan using the less expensive loan, you can now pay a lower interests on a monthly basis!
Up to you! There's not really any minimum or maximum set. Some factors that may influence your decision to refinance is the current interest rate environment.
If the interest rates are lowering and lenders make these changes accordingly, it might be a good time for you to reconsider financing!
Let's say you are a student with international student loans. Yes, it is more challenging for you to refinance these loans in the US. It is still possible though! In order to be eligible for refinancing through some of the more reliable private lenders in the US, you will have to focus on the following:
One of the most notable private lenders in the US is SoFi.
SoFi's student loan refinance options are definitely an option worth looking into. The Fixed APR ranges between 2.99%-6.28% while the variable APR ranges from 2.25%-6.28%.
This refinancing option is also definitely one you should consider if you have a credit score of more than 720. With one of the lowest APR options in the market, this option is suitable for graduated students with good credit and a stable income. Variable APR ranges from 1.92% to 4.84%.
Student Loan Refinancing is a good way to reduce some of the burdens you might be facing from your loan. Like with any other financial decision, look around and study your options thoroughly before making your decision.