If you want to refinance your student loans, then now is a great time to do it. You can now refinance your student loans for a low rate of 2.06 percent, reports Forbes.com. Refinancing your student loans allow you to exchange your student loan for new one. If you refinance your student loans, then you will be able to save money by paying a lower interest rate.
The process of refinancing your student loans is simple. You will need to take the following steps.
Find The Best Interest Rate
There are many online lenders that will allow you to refinance your student loans. It is best for you to compare the different interest rates. Most lenders will allow you to compare interest rates without it impacting your credit score.
Use A Refinancing Calculator
You will need to compare your new interest rate with the one that you currently have. A refinancing calculator will allow you to see how much money you will be able to save. Here is an example of how much money you can save by refinancing your student loans.
You have a student loan balance of $100,000. The current interest rate is 7 percent. The repayment term is 10 years. You refinance your student loans, and the new interest rate is 3 percent. You will be able to reduce your monthly payments by $195. You will be able to save $23,457.
Apply Online
You can apply for student loan refinancing online. It should only take you 10 to 15 minutes to apply. You can upload the supporting documents that you need online.
How to Get Approved
You will need to meet the following requirements in order to get approved.
- A credit score above 650
- Be employed
- A stable income
- No defaults on student loans
- Low debt-to-income ratio
