This 2-Minute Trick Could Help You Get Out of Student Loan Debt Faster

·2 min read

Say goodbye to student loan debt by refinancing

Student loans can often take years to pay off, especially if you have a large balance, a high interest rate, multiple loans — or all three.

But if you refinance your student loans, you could reduce your repayment time and get out of debt much faster.

Refinancing lets you consolidate all or part of your student loan balance into a new private loan.

When you refinance, you could get:

  • A lower interest rate, which could reduce your overall cost

  • A lower monthly payment, which could reduce the strain on your monthly budget

According to an analysis of rate requests submitted to the Credible marketplace during May 2021:

  • Rates on 10-year fixed-rate loans averaged a new record monthly low of 3.61%, down from 3.73% in April and 4.40% a year ago.

  • Rates on 5-year variable-rate loans averaged 3.07%, down from 3.25% in April and up from 3.00% a year ago.

How could refinancing shorten my repayment time?

When you refinance, you might qualify for a lower interest rate. If you also choose a shorter repayment term, the total cost of repaying your student loans will fall. This means you could repay your loans in a shorter amount of time for less money — and be debt-free sooner.

Best of all, private student loan interest rates have fallen dramatically, which means you might qualify for a historically low interest rate if you refinance right now.

Keep in mind that if you refinance federal student loans, you’ll no longer have access to federal programs, such as income-driven repayment, deferment, and student loan forgiveness.

It also might not be a good idea to refinance right now as interest and payments on federal student loans have been suspended through Sept. 30, 2021.

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

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.

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