Those who have attended college and borrowed from student loans know how difficult they can be to pay back later. In fact, it’s not uncommon to hear about college graduates completely defaulting on their loans. If you feel like student loans are killing your vibe and you’re ready to get back on track, consider these tools below.
Student Loan Refinancing
For those who don’t know, student loan refinancing is the process of obtaining a new loan at a new interest rate. Many student loans have interest rates around 7% and refinancing may give you the opportunity for a lower rate. Refinancing can save a post college student a lot of money! Imagine being able to put the money you save into investments, your savings account, and paying towards your principal balance.
What You Should Know About Student Loan Refinancing
Individuals who apply for student loan refinancing should be aware that they are going through a private lender. This could mean that you are no longer able to receive income driven repayment plans, student loan forgiveness, or deferment.
Also, be aware that student loan refinancing and consolidation is different. If you consolidate your loans it means you’re using one large loan to pay off the smaller ones. Although monthly payments might be lowered, you may end up paying more interest because the loan is larger.
How Credible.com Can Help
If you’re trying to determine your eligibility for student loan refinancing or how to find reputable companies that provide this service, check out Credible.com. Credible is the “Kayak” of student loan refinancing and using their simple platform, it takes less than 2 minutes to find out if you’re overpaying on your student loans.
All you have to do is answer a few quick questions, and based on your degree of qualification, you’ll receive real pre-qualified rates- not ranges of rates, from up to 11 lenders.
Their dashboard allows you to compare these options side-by-side and sort based on the elements that are most important to you. You can toggle between fixed rates and variable rates, payment terms, and monthly payment.
Once you’ve selected the option that works best for you, you’ll be asked to import your student loan information into Credible. Within one business day, you’ll receive a finalized offer that could change your life.
The Perks of Credible
Unlike other companies, Credible is free of charge to use and it doesn’t interfere with your credit score. Post college students can find relief with Credible’s easy-to-use system as it takes out the time-consuming task of searching. Everything you need to know is right in front of you and there’s a team to assist along the way if needed. Whether you have private loans, federal loans, or Parent PLUS Loans – you can use Credible.
In addition, for individuals that are gearing up for college, Credible has tools for you too. Similar to the student loan refinancing process, you’ll complete one form and receive feedback from multiple lenders.
Advice For Those Thinking About Student Loans
Whether you’re an 18 year old who is straight out of high school or a parent preparing your child to go off to college, there are a few things you should know.
- Student loans typically come in two forms, which are private loans or federal loans. You can compare them both using Credible.com.
- Paying debt faster means you’ll have less interest over time, however your rates will be higher each month. The payments would mostly be going towards your principal balance versus interest. The opposite is true if you pay them off over a long period of time.
- Investigate if there is a grace period for student loan repayment, as not all plans include this.
- Do the math and only take what you need. Many new college students don’t realize the terms associated with student loans. They are surprised at how much they owe back when they graduate at 21/22 years of age. There are over 40 million people struggling with student loan payments today, so always do your best to make an informed decision.
