Refinancing student loan obligations form your basically exchange your money having another loan. Individuals refinance college loans with loan providers such as for instance SoFi and Serious to score a reduced rate of interest, that will help save money and you may pay the education loan loans less. But, if or not you will want to re-finance your own student loans depends on your unique condition. Here are a few benefits and drawbacks off education loan refinancing.

Reduce your interest rate

Refinancing college loans can potentially decrease your interest rate. This could save you thousands of dollars, based your loan matter additionally the new financing conditions. Eg, state you really have $fifty,000 when you look at the student loan obligations within seven% attention towards an excellent ten-season name. If you were capable refinance you to number within a diminished speed out of cuatro% for the very same name, might rescue $8,918. Keep in mind that you do not get access to straight down rates of interest if your credit rating was worst. Read more