How does a student loan refinance work?

So, what exactly does it mean to refinance your student loan? Basically, you take out a new loan with a lower interest rate, use it to pay off your existing debt, then start making monthly payments on your new loan instead.

It might seem like you’re just trading one debt for another, but refinancing into a lower rate could help you pay off your loan more quickly and save you a huge amount in interest.

Let’s say you owe $25,000 on a student loan with an 8% interest rate, and you have 15 years remaining in your term.

If you used Credible to refinance your loan to a 12-year term at 4.25%, you’d pay $17 less each month, pay off your debt three years earlier and save $11,046 in interest. Nice.

Credible is a website that helps you save on interest. Interested? Use Credible to shop around and find the best rate for you on a variety of personal loan products, including student loan refinancing and personal loans for debt consolidation.

Find your rate

Credible student loan refinancing

Not all refinances are equal. If you want to save the most money possible, you’ll need to shop around for the best deal. That’s where Credible comes in.

Credible lets you shop around for better rates on your student loan the same way you’d compare hotels online. They’ll show you refinancing rates from up to 10 lenders and make it easy to pick out the best option.

Just ask Max, who thought refinancing would be a nightmare and he’d be saddled with debt forever.

“I had looked into the refinancing process for my student loans before, and it seemed incredibly daunting,” he writes in his review.

Then Max tried using Credible and found multiple refinancing options that were way better than his current loan.

“I was able to find a lender and refinance everything to a more affordable payment,” he writes. “[I] cut my interest rate in half in less than a week!”

Credible will give you $200 if you find a better loan

All of Credible’s quotes are actual prequalified rates — not estimates — and you’ll never have to worry about paying any additional charges or fees.

Credible is so confident they’ll connect you with the best refinance rate that they’ll give you $200 if you find a better one.

Don’t let your student loans follow you around for the rest of your life. With Credible’s help you can be debt-free sooner, and with more money left over in your bank account.

Even if you’re just curious, comparing refinancing rates with Credible is a good call. It won’t affect your credit score, and it takes just two minutes.

Here's how to save up to $700/year off your car insurance in minutes

When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.

It’s true. You could be paying way less for the same coverage. All you need to do is look for it.

And if you look through an online marketplace called SmartFinancial you could be getting rates as low as $22 a month — and saving yourself more than $700 a year.

It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side.

So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.

About the Author

Shane Murphy

Shane Murphy

Reporter

Shane is a reporter for MoneyWise. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.