Is “Should I refinance my student loans?” on your mind?
By refinancing your student loans, you can lower your monthly payments due to reduced interest rates, thereby saving big. But this needs to be thought through. You need to ensure that you are moving to a better option.
Here are a few questions you should ask yourself before you make the switch.
What is the end objective?
- Is it to lock in lower interest rates?
- Is it to reduce your monthly payments?
- Is it to save more?
- Is it to get done with your loan faster?
Choose a refinancing loan that best meets any or all of the above objectives.
What is the expected interest rate?
Now that you’re replacing your current student loan with a new one, this gives you the option to shop till you get a better deal.
A lower student loan rate can save you money since it reduces both your monthly payments and the amount of interest you have assessed over the life of the loan.
How much do you pay?
You need to make note of your loan payoff amount which is the payment you’d need to make to pay off your student loans in full.
How much can you afford?
Your current payments can be a baseline of what’s affordable for you.
If you’ve been paying more already, that’s a good sign.All you have to do is switch to a shorter repayment period to save time. But if it’s been a struggle to make your current payments, consider lowering the payments to save more money.
Do you have enough credit?
Good credit score is a good sign, and is required by most education loan providers.
It will be much easier to refinance as your credit history will be a core factor to consider for approving or denying your refinance application.
What do you do if it gets rejected?
If you’re rejected for student loan refinancing, don’t give up.
Here’s one way to get a better student loan refinance rate than what you’d be offered on your own.You can refinance student loans with a cosigner who meets the lending requirements.
- Will your new payments be manageable? If you want to refinance, you need to make sure your new payments are manageable.
- Do you qualify for refinancing? Ensure you meet requirements for credit score, annual income, savings, and college degree.
While you choose to refinance your current student loan, you are entitled for a good credit for the changes in your personal financial profile due to progress in your career and income. So, take the first step towards refinancing your student loans with Auxilo.
Refinance with Auxilo and take advantage of our lowest interest rates to save yourself a significant amount on your student loan, reduce monthly payments and many more benefits!