Should You Refinance Your Student Loans?
Refinancing your student loans can save you thousands of dollars on interest payments. If you’re credit is good and you have a stable amount of income coming in, I think it makes perfect sense to consider refinancing your student loans for a lower rate. Let me explain why.
For example, Joe is paying $465 per month on his student loans at a 7% interest rate. Joe owes a total of $40,000 and plans to pay his loans off within 10 years.
With a 7% interest rate on a high balance, most of the payment goes towards interest in the beginning.
By the time Joe finishes repaying his student loans at 7%, the total amount of his payments that went to interest would be $15,732 total.
Let’s say Joe had good credit
Refinancing your student loans can save you thousands of dollars on interest payments. If you’re credit is good and you have a stable amount of income coming in, I think it makes perfect sense to consider refinancing your student loans for a lower rate. Let me explain why.
For example, Joe is paying $465 per month on his student loans at a 7% interest rate. Joe owes a total of $40,000 and plans to pay his loans off within 10 years.
With a 7% interest rate on a high balance, most of the payment goes towards interest in the beginning.
By the time Joe finishes repaying his student loans at 7%, the total amount of his payments that went to interest would be $15,732 total.
Let’s say Joe had good credit