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Started By
Message
When should I refinance my student loans?
Posted on 1/2/18 at 3:05 pm
Posted on 1/2/18 at 3:05 pm
So I have about 28.5k of students loans. I have one with an interest rate of 6.5% that has a balance of just a little over 5k. The rest are in the 3.5-4.5% range with one closer to 5%. This is my first and only debt so I'm pretty ignorant as far as refinancing. I understand the premise and how it works, but I've never done it so looking for some help.
I'm doing all I can to pay the one with the bad rate off. Right now I pay about $650/month on it and I'm still in the grace persiod so it's not affecting any others negatively. I also should finish my aggressive savings towards my emergency fund so I'll be looking to add a little bit to the loans probably starting February. What's my best plan of attack here?
I'm doing all I can to pay the one with the bad rate off. Right now I pay about $650/month on it and I'm still in the grace persiod so it's not affecting any others negatively. I also should finish my aggressive savings towards my emergency fund so I'll be looking to add a little bit to the loans probably starting February. What's my best plan of attack here?
4
Posted on 1/2/18 at 3:18 pm to Mingo Was His NameO
With those rates in the 3.5-4.5% range, the interest rates you have are probably as good as you can get.
Posted on 1/2/18 at 3:18 pm to Mingo Was His NameO
All through Navient?
Posted on 1/2/18 at 3:21 pm to tduecen
quote:
All through Navient?
Yes. I guess I should add my credit score is over 700 and maybe 750 so I have a good score. I don't know if that will matter in this instance but just trying to provide all relevant info.
Posted on 1/2/18 at 3:23 pm to Mingo Was His NameO
In my experience they've been good working with me. I currently do the income repayment option which was cheaper than them just sending me the bill.
Posted on 1/2/18 at 3:26 pm to Mingo Was His NameO
Theres not much downside to refinancing your higher interest rate loan. I wouldn't bother with the lower interest ones as you are unlikely to get get a better rate.
You can probably find a 4-5% rate for the highest rate one.
The only caution is that when you finance you lose your option to forbearance, hardship deferments, various repayment options assuming the loan you want to refinance is a federal loan. So something to keep in mind if you don't already have an emergency fund or job is tenous, etc.
You can probably find a 4-5% rate for the highest rate one.
The only caution is that when you finance you lose your option to forbearance, hardship deferments, various repayment options assuming the loan you want to refinance is a federal loan. So something to keep in mind if you don't already have an emergency fund or job is tenous, etc.
Posted on 1/2/18 at 3:39 pm to Puffoluffagus
quote:
The only caution is that when you finance you lose your option to forbearance, hardship deferments, various repayment options assuming the loan you want to refinance is a federal loan. So something to keep in mind if you don't already have an emergency fund or job is tenous, etc.
So looking into refinancing the high interest rate is something I should look into? I plan to have it paid off by the end of the year and I know there's costs associated with the refinance. I would think I would really be saving any money by doing that. It also looks like I may just be better staying put on the others.
Repayment isn't something I'm worried about. I am pretty much doubling the minimum payment, and I'm in accounting so my job is fine, and I should expect a raise once I finish the CPA.
Posted on 1/2/18 at 4:11 pm to Mingo Was His NameO
Realistically you're only going to save, at most, 2% interest on that 6.5% loan by going with some lender like Sofi. They'll do a hard-pull on your credit, take up your time, possibly add some fees, and you'll end up worse off than if you had just focused on paying the loan. (that is if you really stick to the plan on paying it in a year).
Rather than doubling the payment on all your loans, use that excess money to pay the expensive one faster.
Rather than doubling the payment on all your loans, use that excess money to pay the expensive one faster.
This post was edited on 1/2/18 at 4:22 pm
Posted on 1/2/18 at 7:12 pm to GaryMyMan
quote:
Realistically you're only going to save, at most, 2% interest on that 6.5% loan by going with some lender like Sofi. They'll do a hard-pull on your credit, take up your time, possibly add some fees, and you'll end up worse off than if you had just focused on paying the loan. (that is if you really stick to the plan on paying it in a year).
That is good info except for the fees part. SoFi charges no fees to refi the loan with them.
quote:
Rather than doubling the payment on all your loans, use that excess money to pay the expensive one faster.
This is good advice.
Posted on 1/2/18 at 7:16 pm to Mingo Was His NameO
You can check on SoFi's website with no credit pull to get an idea of what refinancing will do for you.
I had a student loan through the Dept of Ed that I refinanced with Sofi and saved me a ton of money. But I was able to reduce my years to 5 and still make the payment. My interest rate went from 6.125 to 3.865 with my wife cosigning.
I had a student loan through the Dept of Ed that I refinanced with Sofi and saved me a ton of money. But I was able to reduce my years to 5 and still make the payment. My interest rate went from 6.125 to 3.865 with my wife cosigning.
Posted on 1/2/18 at 7:20 pm to LSUSUPERSTAR
So if I were to refinance could I make the payment with a credit card? Navient only allows checking accounts, but if I can do a credit card I'll do a 12 month no interest and save a lot.
Posted on 1/3/18 at 6:08 am to Mingo Was His NameO
From my experience with med school loans (a lot more than you mentioned).
Consider consolidation if it drops the rate. Lose benefits below though
Look into the reduced payment plans if continuing $650 is not an option or if that amount won’t cover the total when the regular payments are due. Paying that much - seems like you’ll have them paid off in 5 years or so. Can also just file for reduced payments and pay extra also
Consider consolidation if it drops the rate. Lose benefits below though
Look into the reduced payment plans if continuing $650 is not an option or if that amount won’t cover the total when the regular payments are due. Paying that much - seems like you’ll have them paid off in 5 years or so. Can also just file for reduced payments and pay extra also
Posted on 1/3/18 at 6:15 am to Mingo Was His NameO
It sounds like you got a pretty good deal going right now with your rates. Sofi will be more hassle than it's worth to get that 6.5 down to like 5.25-5.5, and you'll end up in the same boat you're in. Pay off that big one then start knocking out the others.
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