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Top 10 Things To Know About Student Loan Refinancing
Updated On November 2, 2021
Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.
You’re ready to refinance your student loans. You’ve done your homework. You’re well informed. You’ve got this. Here is one more list to make sure you have everything on your list before you choose your student loan company and your student loan.
1. Interest Rates Savings
Compare the interest rates and loan terms of your current student loan with your new interest rate from student loan refinancing.
Calculate your savings from student loan refinancing with the Mentor Student Loan Refinancing Calculator.
2. Fixed vs Variable Interest Rates
If you are switching from a fixed interest rate to a variable interest rate, your variable interest rate could rise in the future and change your monthly student loan payments for the better (lower interest rates) or the worse (higher interest rates).
3. Borrower Reward Benefits
Look for borrower reward benefit programs, as these can help reduce the total cost of your loan.
4. Repayment Terms
While extending the repayment term may lower your monthly student loan payment, you may end up paying more interest over the life of your refinance loan.
5. Hidden Fees
Understand if there are any upfront, origination, prepayment or other fees, as they could add to the total cost of your loan.
6. Co-Signer
Determine if your student loan company permits co-signers.
7. Co-Signer Release
Determine if your student loan company permits a co-signer release option.
8. Reputation
Ensure the lender and servicer are reputable and financially strong. The servicer is the organization you will be making payments to and interacting with over the life of your student loan.
9. Refinancing vs Consolidating
Understand and evaluate the various features and benefits of your current student loans, and any potential benefits that may be lost by refinancing federal and private education loans, such as the loss of any remaining grace periods.
10. Student Loan Review
Read our Reviews to choose the best student loan company for you.
Refinance With SoFi
