Student Loan Interest Rates: How To Save Money By Changing Your Rate
NOTNow is the perfect time for graduates of the United States to refinance their student loan at a fixed rate and thus obtain better terms.
There was a new record for student loan refinance fixed rate for the week of December 13, because it reaches 3.33% for well-qualified borrowers who chose to choose the 10-year term, say Credible Data, breaking the previous record during the week of November 22 which was 3.35%.
By refinancing at a lower student loan rate, you could help lower your monthly payments, pay off debt faster, and save money on interest over the life of the loan.
How to save money with your student loan
With Fixed student loan rates at an all-time high of 3.33%, it should be borne in mind that this is a decrease from 3.86% at the same time last year for a 10-year student loan refinance term.
If it boils down to a five-year refinance loan, however, the the variable rate has indeed increased to 2.82% during the week of December 13, after being 2.75% the previous week. In addition, the average variable rate is down compared to the same period last year, when it was on average 3.2%.
One thing to keep in mind is that when refinancing your federal student loan in a private loan, you will no longer be eligible for certain government benefits, such as administrative forbearance, income-tested repayment plans, and student loan waiver programs.
Get a low interest student loan
Refinancing rate for private student loans may be at near an all time high, but the rate you receive will depend on your personal circumstances. In terms of what will be considered in terms of criteria, there are three key areas:
- The borrower’s credit history
- The loan conditions
- The type of rate (fixed or variable)
These three areas will determine whether you get as good a rate as possible, so that those with a good credit history and shorter repayment plans are likely to benefit the most. Whether you opt for a fixed or variable rate depends on your situation, but with rates this low you might prefer a fixed rate.