Hello! I currently have 12,500 (6% int.) in student loans which comes out to 220.39 I pay a month. Credit Karma recommends I refi my loans with a company that will offer me a lower rate which will lower my payment to 114 a month but extends the term out to 120 months. In my current situation, I will finish paying my loans in 5 years. Does it makes sense to refi? Thanks.

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Posted by Iosh

Bureau of Interstellar Immigration

Member since Dec 2012

18941 posts

Posted on 11/18/15 at 1:13 pm to Herb484

How stable is your job situation? Re-fi with a private company will almost always lower your rate but you'll lose some of the deferral/forbearance provisions and payment options that come with federal servicers.

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Posted by Herb484

Member since Jan 2009

588 posts

Posted on 11/18/15 at 1:16 pm to Iosh

I would say it is stable.

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Posted by Iosh

Bureau of Interstellar Immigration

Member since Dec 2012

18941 posts

Posted on 11/18/15 at 1:27 pm to Herb484

Then go ahead, but shop around first. I've heard good things about SoFi (don't know if that's who you saw on CK).

Regardless of whether the term is extended, there's no reason you can't just keep making the same payments and save on interest.

This post was edited on 11/18/15 at 1:29 pm

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Posted by JamalSanders

On a boat

Member since Jul 2015

12135 posts

Posted on 11/19/15 at 9:16 am to Iosh

quote:
SoFi

SoFi offered me a higher rate than my existing loans.

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Posted by Delacroix

Member since Oct 2008

3987 posts

Posted on 11/19/15 at 2:12 pm to Herb484

if you go with SoFi, with a 5 year term you are looking at rates from 1.9-4.2 Variable or 3.5-5.49 fixed. I went with variable with Sofi and it should save me nearly 10k over the life of my loan

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