Student loans represent a financial burden for thousands of graduates across the country. For those who are struggling with their rates, terms, or payments, refinancing can make a helpful impact. Even though there are financial benefits, navigating the process can be difficult, which is why this blog breaks down everything you need to know and answers the crucial question, “How can I refinance my student loans?”
Why Consider Refinancing Student Loans?
As we said before, student debts can be a massive burden. This burden can demand large payments each month and make it harder to pay bills or even make you less likely to take out other lines of credit.
Through refinancing, the terms of your student loan can be changed. Want to pay off your loans earlier than expected? You can shorten your repayment period by altering the payment amounts or overall interest rate. Perhaps you want to extend the life of the loan and lower your monthly payments. All of these may be possible when refinancing student loans.
For those who have experienced an increase in income and don’t want to pay as much interest over the life of the loan, refinancing can use your increased credit health to secure you a better interest rate and save you in interest costs.
Who Benefits from Refinancing?
Whether it be more cash flow for other high priority financial obligations, or lower interest and shorter payback times for a total savings focus, many people stand to benefit from student loan refinancing. While having strong credit scores and stable finances may increase your chance of qualifying for a better rate, anyone that receives a financial benefit is going to benefit. The new lender, even though they are charging you less than the previous lender, is still making interest income on the new less expensive loan, so they benefit too. Additionally, ensuring you have the ability to handle loan terms is another benefit to refinancing. If you have a more tolerable payment, you can avoid deferrals and make progress while avoiding penalties and fees in a loan that was harder to manage.
For those who want to explore refinancing a student loan, you can explore refinancing rates easily with our loan refinancing rate comparison tool. This tool will allow you to self-identify your credit score and compare rates by selecting your ideal term, interest rate, and monthly payment.
How to Refinance a Student Loan
The best way to refinance a student loan is to work with an expert. You no longer need to spend hours researching and shopping, just to end up back where you started. At Gravity Lending, we can match you with the perfect loan for your needs, quickly and securely. We work with the top lenders in the U.S. to Bring Your Payments Back Down to Earth. Find out more by contacting us.