The American Reporter
Thursday, February 2, 2023
  • World
  • National
  • Science
  • Business
  • Health
  • Education
  • Lifestyle
  • Entertainment
  • Sports
  • Technology
No Result
View All Result
  • World
  • National
  • Science
  • Business
  • Health
  • Education
  • Lifestyle
  • Entertainment
  • Sports
  • Technology
No Result
View All Result
The American Reporter
No Result
View All Result
Home Education

How to Reduce your Total Student Loan Obligation With a Refi

mm by Jennifer Ross
May 18, 2022
in Education
417
VIEWS
Share on FacebookShare on Twitter

Have you ever calculated the total amount you’ll owe in student loans? It can be daunting to consider. But a refinance can help shrink your total student loan obligation by reducing the interest you’ll pay on your loans.

What Is Student Loan Refinancing? 

When you refinance student loans, you pay off your existing student loans by taking out a new loan in its place — ideally one with more appealing repayment terms and/or a lower interest rate.

Reasons to Refinance Student Loans

There are two ways you can refinance your student loans that will lower your total student loan obligation:

  1. Shortening your repayment term: Switching to a 10- or 15-year repayment term will help you get out of debt faster and typically comes with a lower interest rate; less interest will also accrue over the life of the loan.
  2. Getting a lower interest rate: Even a small difference in your interest rate can make a big difference when it comes to student loans. A 1% interest rate decrease is more than enough reason to consider a refi.

Eligibility for Student Loan Refinance

You should make sure you’re likely to qualify for a refinance before you apply for one. Lenders may consider your current income and debt-to-income ratio, credit score, job security, and repayment history. A strong credit score can also help you earn lower interest rates.

How to Prepare for a Student Loan Refinance

Before applying for a refinance, here are some suggested tips. 

  1. Check Your Credit Score: One of the first things a lender will look at to determine loan terms is your credit score. A high credit score, ranging between good and excellent, will yield the best results. 
  2. Don’t Apply Between Jobs: While it makes the most sense for you to renegotiate terms when you have greater financial need, including during unemployment, the circumstance can actually harm your chances. Refinancing often follows the same qualification guidelines as the initial loan, so proof of income and steady employment may be required for your refi as well. 
  3. Bolster Your Income: Income plays an important part in refinancing approval. While stable employment is important, your total income is equally important. Not only does steady income show the ability to repay, but higher incomes can impact your DTI ratio resulting in potentially better interest rate opportunities, meaning you’ll pay less money in the end. 

Consider Bringing on a Cosigner

If you’re struggling to secure a refi or have concerns about getting approved, you may want to speak with a lender to see if a qualified cosigner could improve your chances of approval. Adding a cosigner can help ensure that the loan will be paid and gives the lender an extra layer of security in deciding to lend to you.  

Previous Post

Up Close and Personal With Bestselling Author Laura Formentini

Next Post

How Long does it take to get a Life Insurance Policy?

Next Post
Reflections on Why a Parent Should Have Life Insurance

How Long does it take to get a Life Insurance Policy?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest News

Helping Businesses up their Digital Marketing Game for Almost a Decade

Helping Businesses up their Digital Marketing Game for Almost a Decade

February 2, 2023

The inventor of the exploding bike lock is coming after your financial advisor

February 2, 2023

Can MERRILL intelligent AI trading system lead the encryption market in 2023?

February 1, 2023

Neo-Bank Cashaa Revolutionizes the Fintech Space and Empowers the Crypto Industry

February 1, 2023

Empowering Your Team: How Davina Ware Can Help Your Corporation Be Successful Through Employee Development

January 31, 2023

Dame Munni Irone – Her mission to bring a global positive change

January 31, 2023

How many immigrants “American dream” has turned into a “border nightmare”?

January 31, 2023

Beautiful, Sustainable Design: A Touch of Magic with Interior Designer Aly Hammoud

January 31, 2023

Meliá Hotels International will hold a Global Strategy Conference

January 29, 2023

HealthKeeperz on the Looming Elder Care Crisis in America and What We Can Do About It

January 28, 2023

How Catherine Gibson Teaches Children to Embrace Their Uniqueness

January 28, 2023

Yomigt, the Leader of Global Industrial Layout

January 27, 2023
  • Home
  • About Us
  • Our Staff
  • Contact Us
  • Privacy Policy
  • Editorial Policy
  • Use of Cookies

© 2019 - The American Reporter

No Result
View All Result
  • Home
  • About Us
  • Our Staff
  • Contact Us
  • Privacy Policy
  • Editorial Policy
  • Use of Cookies

© 2019 - The American Reporter

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.