This student loan refinances calculator will show you how much money you can save by refinancing your student loans.
Simply enter your current loan information, including interest rate, loan balance, and monthly payment amount. Then enter the new loan terms you’re considering. The calculator will show you the total savings you could realize over the life of the loan and the monthly savings.
It is up to you to decide whether or not to refinance your student loan debt. You should refinance if you meet the following criteria:
If you refinance federal loans, you may lose access to advantages such as loan forgiveness and student loan relief. If it’s probable that you won’t be able to make payments on time, think carefully.
There is no point to refinance your debts if you cannot reduce your overall payback expenses or monthly payment. To find out how much you may save, use the student loan refinancing calculator below.
You normally need a credit score in the mid-600s and enough money to pay your obligations and other costs continuously. You could refinance with a co-signer who does if you don’t fulfill those requirements.
- How Much Will Refinance Save?
- See How Much You’re Going To Save With Refinancing
- Frequently Asked Questions
- How to Get Approved for Student Loan Refinancing
- How to Get Student Loan Savings Estimates that Results of Refinancing
- Is It Worth Refinancing Your Student Loans?
- Is There Any Fee to Refinance Student Loans?
How Much Will Refinance Save?
By refinancing, you might save tens of thousands of dollars over the life of your loan.
There are 3 major benefits of refinancing student loans:
- You may be able to obtain a cheaper monthly payment, freeing up cash for other obligations.
- You may pay off your loan more quickly, saving money on interest.
- Lowering your monthly payment lowers your debt-to-income ratio, making it simpler to qualify for a mortgage or other significant purchase.
If you opt to refinance your student loans, shop around to find who has the greatest offer.
If you have similar offers, give the lenders who provide the most payment flexibility and the longest feasible forbearance alternatives more weight.
Consider which company provides the best student loan refinancing incentive.
See How Much You’re Going To Save With Refinancing
Student loan refinance calculator
Step 1: Know what you owe
How much can refinancing save? Enter details of your existing loan
Step 2: Estimate your new rate
The better your credit, the lower the rate you’ll likely get. If you have bad credit, the best thing you could do is using a co-signer
Step 3: Know how much you could save
Frequently Asked Questions
How to Get Approved for Student Loan Refinancing
Here are the easiest 5 ways to get student loan refinancing approved:
1. Pay off other bills: If you have other debts, don’t worry. Pay off some of your other debts if you can to lower the amount owing. As long as you have adequate cash flow each month to meet your financial responsibilities, you should be an excellent candidate.
2. Reduce your debt-to-income ratio: A lower debt-to-income ratio is preferable. You may improve your debt-to-income ratio by either raising your income or lowering your spending (or both).
3. Have a Good to Excellent Credit Score: The best student loan providers require a credit score ranging from 675 to 790. Some lenders, however, do not need a minimum credit score.
4. Have a constant and stable source of income: Lenders will have more faith in your capacity to make monthly student loan payments if you have a regular wage coming in every month. If you don’t have a consistent monthly income, refinancing student debts may be more challenging.
5. Get a co-signer if you don’t match the requirements: If you don’t have enough money on your own, a qualified co-signer with a decent credit score and monthly income can help you be approved.
How to Get Student Loan Savings Estimates that Results of Refinancing
To determine how much money you’ll save by refinancing and if it’s worthwhile for you, utilize actual rates depending on your financial circumstances.
Because each lender has its own set of underwriting standards that determine who is approved for a loan and at what interest rate, you’re likely to obtain different rates from each company you contact.
Here’s how to compare several lenders in three steps:
1. Estimating Your Rates
Visit the websites of a few of the most reputable student loan refinancing companies to get an idea of the interest rates you may expect from each.
Pre-qualification is when a lender does a soft credit check (one that doesn’t harm your credit) to determine whether you’ll be eligible for the interest rate they’re offering.
If your lender hasn’t pre-qualified you, you’ll have to fill out an application before seeing tailored interest rates.
If you apply for a lot of refinance loans in a short period, the credit bureaus will usually classify it as a single hard inquiry, which will not affect your credit score.
You may also like: How to Pay Off 200k in Student Loans
2. Examine the Interest Rates that Various Lenders Provide
After you’ve gotten a few estimates or offers, compare them using their yearly percentage rates (APR).
APRs indicate the real borrowing cost, including any fees that may be applied.
3. Consider Other Loan Features
Get the lowest feasible interest rate to save the most money. Keep an eye out for loan conditions and repayment options as well.
Choose a term length that is close to the term length of your existing loans if you are unclear about how long the cash from your refinancing will last.
You might also see if you can refinance the bonus with a student loan.
Is It Worth Refinancing Your Student Loans?
You may be under the impression that every student loan service and the product comes with a catch or at the very least some jargon-filled legalese.
While there are benefits and drawbacks to student loan refinancing, paying to have your loan modified is not one of them, so don’t be misled.
Simply because refinancing is free doesn’t mean it’s the best option for you.
If you want to lower your interest rate or monthly payment, switch to a lender with better customer service, or consolidate your federal and private loans into a single obligation with a single monthly payment, refinancing might be a good option.
If you anticipate you will require the protection provided by your federal loans, refinancing may be a bad idea.
If you refinance federally subsidized loans for private refinancing, you will lose access to income-driven repayment, most loan forgiveness options, and other government-specific benefits.
Take the time you need to research if refinancing is right for you.
Is There Any Fee to Refinance Student Loans?
Refinancing your student loans costs nothing. Whether you wish to reduce your interest rates or change your monthly payments, this is true.
- Evaluate Lenders and Verify Eligibility Requirements: Compare a list of student debt refinancing lenders to find a lender who fulfills your requirements. Find out whether those lenders will let you pre-qualify.
- Pay Attention to the Lender’s Comments on Your Denial: Whether or not you are authorized for a loan is determined by the lender’s lending standards and judgment. If you wish to change your mind, the lender must send you an adverse action notice with an explanation.
- Improve Your Credit History Before Applying Again: Sending a goodwill letter requesting the termination of previous accounts will help with credit issues.
- Work on a Side Hustle in the Meantime: If you need to improve your credit score before asking for another refinance, consider beginning a side hustle.
- Take Serious Action to Increase Your Chances of Being Accepted the Next Time: Make a plan to handle any roadblocks if your financial situation is preventing you from moving forward. Continue to look into a lender’s co-signer release policy and focus on your finances so you may reapply without a co-signer in the future.
- Increase Your Cash Flow: The more cash you have on hand, the more likely you are to repay a refinanced debt. To increase your cash flow, increase your income, or reduce your costs.
Marie got her journalism degree from the University of California and is an award-winning financial journalist, who’s responsible for collecting and analyzing information concerning students and young adults within the world of finance.
Marie has spent her career with more than 5 years writing for unique media outlets like Yahoo finance, GoBankingRates, and CNBC. She also teaches them how to plan strategically to get out of loan debts easily.
Her goal is to educate students about the different stages in life that involve finances so they can get their money’s worth.