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Don’t wait to refinance
Interest and payments on federal student loans have been suspended through Sept. 30, 2020. Since it’s impossible to get a better rate than 0%, there’s little incentive to refinance federal student loans at the moment.
But it’s still never been a better time to consider refinancing your private student loans. Why? Because private student loan interest rates have fallen dramatically — and you can take advantage of them right now.
See how drastically rates have dropped
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See My Rate
Refinancing consolidates your federal and private student loans into one new loan with a private student loan lender. You can also refinance only part of your debt if you’d prefer.
By refinancing your student loans, you might qualify for a much lower interest rate than what you currently have. This could reduce how much you pay over the life of the loan. Or you could extend your repayment term to dramatically lower your monthly payment and loosen up your monthly budget.
Keep in mind that if you refinance your federal loans, you’ll no longer have access to federal programs, such as income-driven repayment, deferment, and student loan forgiveness.
Where do you start?
Student loans can be overwhelming, but refinancing them doesn’t have to be. That’s why Credible’s here to help. We let you compare rates for FREE and as a bonus:
- It can take just 2 minutes
- Checking prequalified rates won’t impact your credit score1
- You can compare multiple lenders at once to find your perfect fit
The student loan refinancing companies in the table below are Credible’s approved partner lenders. Credible will receive compensation if you use Credible’s marketplace to obtain a loan from these lenders. Our compensation does not affect placement on the table below.
You can compare prequalified rates from all of them by filling out a single form:
|Lender||Fixed rates from (APR)||Variable rates from (APR)|
|Ready to see how much you can save?
Citizens Bank Education Refinance Loan Rate Disclosure: Citizens Bank Disclosures Citizens Bank Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2020, the one-month LIBOR rate is 0.17%. Variable interest rates range from 2.49%-8.38% (2.49%-8.38% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.20%-8.63% (3.20%-8.63% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.
How much $$$ refinancing can save
- $22,656 by refinancing into a 5-year variable-rate loan2
- $8,686 by refinancing into a 10-year fixed-rate loan2
|Monthly payment||Total interest charges||Savings|
|Existing loan (6.22%)||$945||$29,129||N/A|
|5-year variable (2.95%)||$1,513||$6,473||$22,656|
|10-year fixed (4.48%)||$873||$20,443||$8,686|
According to an analysis of a sample of more than 17,000 student loan refinancings facilitated by the Credible marketplace, during June 2020:
- Rates on 10-year fixed-rate loans averaged 4.48%, down 26% from a July 2018 peak of 6.05%
- Rates on 5-year variable-rate loans averaged 2.95%, down 37% from a September 2018 high of 4.68%.
However, keep in mind the amount you save will be dependent on your specific situation, and you could wind up paying more over the life of your new loan under certain circumstances.
1 To check the rates and terms you qualify for, Credible or our partner lender(s) conduct a soft credit pull that will not affect your credit score. However, when you apply for credit, your full credit report from one or more consumer reporting agencies will be requested, which is considered a hard credit pull and will affect your credit.
2 Average refinancing rates by month are based on analysis of a sample of more than 17,000 student loan refinancings facilitated by the Credible marketplace, during June 2020. Click here for more information about the analysis. Variable-rate loans can rise and fall with benchmark interest rates. Savings from the refinancing calculation does not attempt to predict how rates on these loans could change over time. The savings calculation above assumes the rate will remain the same throughout the life of the loan, which is unlikely in practice. The calculations also assume that users will make payments on time, and that there will be no prepayments.