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Student Loan Refi question

Posted on 11/18/15 at 12:46 pm
Posted by Herb484
Member since Jan 2009
588 posts
Posted on 11/18/15 at 12:46 pm
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.
Posted by Iosh
Bureau of Interstellar Immigration
Member since Dec 2012
18941 posts
Posted on 11/18/15 at 1:13 pm to
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.
Posted by Delacroix
Member since Oct 2008
3992 posts
Posted on 11/19/15 at 2:12 pm to
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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