How much can I save with a student loan refinance?​

Borrowers could save thousands over the life of their loan, depending on their refinance.  

Refinancing a student loan could result in lower interest payments, which could save you money on the amount you pay over the life of your loan. The exact amount of saving will depend on current market rates and what your financial situation looks like. 

Saving money is just one of the benefits of refinancing your student loan. Refinancing can also change the length of your loan, consolidate multiple student loans into one and offer you a more flexible payment plan than offered with your original student loan. 

Want to start the process of refinancing your student loans? By using our marketplace, you will be connected with a lender to begin a student loan refinance application. 

What’s the average student loan payment in the U.S.?

According to Educational Data, the average monthly federal student loan payment is approximately $434, while the debt per borrower is $39,547. 

Of course, these numbers are just the average and vary depending on the degree you have a student loan with. Monthly student loan payments for a master’s degree ($640) are higher than for an associate degree ($220). 

How can I save on student loan payments?

You can save on student loan payments by adjusting your current payments or refinancing your student loan. 

Switching from monthly payments to a biweekly payment can save you money by paying off your loan quicker. With this method, you will make 13 months of payments in a year, instead of the standard 12. Putting any extra funds toward your student loans could also help you save on interest payments by paying off your loan principal faster. Of course, both of these methods require putting more money into your student loans every year. If that doesn’t seem possible, refinancing your student loan could also save you money. 

Refinancing student loans could save a borrower money by lowering the rate on their loan. With a lower rate on your student loans, you will have extra funds to save or put toward your loan principal to pay off your loan quicker. 

For example, if you have a $100,000 student loan with a 6% rate, lowering it by 1% could save you almost $6,000. Lowering the rate on that same loan by 2% could save you around $12,000. 

If you don’t have a student loan yet, you could save money by comparing student loan lenders before starting your loan. 

How can I compare student loan rates?

You can compare student loan rates by looking at private vs. federal lenders and seeing the interest rates each offers. 

While federal student loans can be easier for undergraduate borrowers to qualify for, private lenders could offer lower rates based on credit score, income, repayment terms and cosigner. 

What should I look for when refinancing student loans?

When looking to refinance student loans, there are a two major things to consider: lender requirements and current rates. 

Requirements to qualify for a student loan refinance can vary depending on your lender. Some of the requirements could be a credit score minimum and current employment, and may depend on whether you have completed your degree. It is smart to see if you meet the requirements set by a lender before applying. 

One of the most important things to look for when refinancing student loans is the current market rate. If the rate has dropped since your original student loan, you could pay less each month. 

When is a good time to check rates for a student loan refinance?

It is best to regularly check rates if you are looking for a student loan refinance. Keeping your eye on rates will help you stay informed about when rates drop. However, your financial situation will also play a part if you are looking for the most affordable rate. 

Building your credit score and gaining steady employment are two things you can do to secure a more favorable rate on your refinance. If you have done both of these, it might be time to seriously check market rates for refinancing your student loan. 

How can I start the student loan refinance process?

If now feels like the right time to refinance your student loan, you can start the process with an online application. Refinancing your student loan could save you money going toward the interest on your loan or offer you flexibility in your repayments that you could not get on your original loan. 

Ready to refinance your student loan? Begin the process with our marketplace which connects you to a lender so you can start your a student loan refinance application! 

_{Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact the student loan lender you choose to get their current rates. Restrictions apply.} 

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.} 

_{All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.} 

_{This student loan refinance marketplace is presented by Rate for marketing purposes only. When you click the button to “Continue” you are leaving Rate and entering the marketplace. The marketplace is operated by FitBux, Inc., which facilitates connections to third-party Platform Partners (such as LendKey and Splash Financial) and their lending institutions, and may receive compensation when you complete a loan transaction. Rate and Fitbux are affiliated companies under common ownership. Clicking the “Continue” button you will be sharing your information with third party Platform Partners LendKey and Splash Financial, and agree to be subject to the terms of use and privacy policies posted by these third parties. Rate is not a lender, does not participate in credit decisions, and does not receive compensation in connection with any loan transaction. Prequalified rates are informational only, do not constitute offers of credit, and are subject to change. Final rates may differ based on your credit profile and other factors. Lowest rates require highly creditworthy applicants and may require a cosigner. All credit decisions are made solely by lending institutions in their discretion. This platform does not represent all available loan options. Product availability varies by state. Not financial advice — consult a qualified advisor before refinancing.}