REFINANCE YOUR STUDENT LOAN
While in school, the norm is to simply follow the advice of your financial aid officer, sign on the dotted line, get your money, then go to class. It isn't the most empowering experience, and sticker shock may settle in when it comes time to actually repay your loans. Welcome to the world of refinancing, which lets you lock in a lower interest rate and, in turn, keep more of your hard-earned paycheck. While it's true that interest rates are on the rise, and they're expected to continue ticking upward, the news isn't all bad.
Moving your student loan balances to a new fixed-rate loan as soon as possible can help you spend less overall than you would if you waited.
The time to refinance your student loans is now; here's why.
Refinancing Can Save You Thousands of Dollars
Refinancing means paying off your student loan balances with a new private loan that has a different (usually lower) interest rate and different protections than before. In addition to putting all your student debt in one place, giving you the convenience of having to make only one monthly payment, this strategy can save you a significant amount of money.
Imagine you have $40,000 in student loan balances across multiple public and private loans, and your interest rates average out to 6 percent. Assuming it takes you 10 years to pay everything off, you'll spend a total of $13,290 in interest by the time you get there. Refinancing to a new loan with a 4.5-percent interest rate slashes that number by over $3,500.
Speak to a trusted lender! Need advice? TOD can help hook you up!