Save thousands of dollars when you discover how to pay off student loans fast by refinancing student loans.
A staggering $1.4 trillion is owed in student loan debt according to the Federal Reserve Bank of New York. Student loans are the most popular form of debt in America, outpacing mortgage, credit card and auto loan debt.
If you’re carrying any portion of the national student loan debt it may feel you’re never going to get rid of it. But there is hope if you learn how to pay off student loans fast.
When you refinance student loans, percentage points are shaved off your loan which saves money on interest. Thousands of dollars are saved plus you get out of debt faster.
How to pay off student loans faster
If you’re carrying higher rates on federal or private student loans, refinancing to a shorter loan term with a lower interest rate could have you out of debt in just a few years plus save thousands of dollars.
Refinancing student loans can lower your interest rate. Typically when you refinance student loans one or more of your loans is consolidated into one new loan. The refinanced loan will include new terms including a lower interest rate, a different monthly payment, and a new repayment term length.
Refinance is the key to how to pay off student loans faster
Both undergraduate and graduate school loans can be refinanced with rates as low as 3.50% with Laurel Road, a brand of KeyBank National Association. Established in 2013, Laurel Road has served thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Most borrowers who refinance save on interest costs over the life of their loans by lowering their interest rates.
Save thousands of dollars with student loan refinancing
The graphic below shows how lowering your current interest rate by at least 2% can save you thousands of dollars.
Graphic Courtesy of Laurel Road
There are both fixed and variable rate loan options available and Laurel Road will allow you to refinance both undergraduate and graduate school loans together.
Laurel Road student loan refinance amounts start at $5,000. Laurel Road does not have a limit on the maximum you can refinance.
What loans can be refinanced?
Laurel Road will refinance federal, private, and Parent PLUS student loans. At Laurel Road you can refinance all of your loans into one monthly payment; or, you can choose to which loan you want to refinance.
What is required to refinance student loans with Laurel Road
To be eligible for the program, you must meet some basic requirements:
- Be a U.S. citizen
- Have Photo ID
- Be at least the age of majority in your state
- Have two recent pay stubs or other proof of income
- Provide current student loan payoff statements
- Have a 660 minimum credit score
Pros and cons of Laurel Road student loan refinancing
If you’re interested in the Laurel Road student loan refinancing program, there are some key benefits and drawbacks to consider.
Benefits
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- Refinancing can help you by changing the interest rate on your loan
- Refinancing to a lower interest rate can save you thousands of dollars
- Laurel Road’s rates are competitive
- Laurel Road does not charge any fees during the application or loan closing process, unlike many lenders. There are no application fees, origination fees, or disbursement fees plus, no prepayment penalties.
Refinancing student loans can add up to significant savings. By refinancing multiple loans into one loan with a lower rate, you will accrue less interest over the life of the loan, saving you money on a monthly basis and over the course of the loan.
Drawbacks
- Beware of refinancing into a longer-term loan just for a lower interest rate. You could end up actually paying more over time because you are stretching your payments out.
- Federal student loan benefits will be lost once you refinance with a private lender, including the potential ability to defer payments and the ability to switch to a more flexible, income-driven repayment plan.
- The ability to qualify for the Public Service Loan Forgiveness program would also be lost.
- The rate depends on your credit score. Typically, the higher your score, the lower the interest rate you’ll be offered through refinancing.
Laurel Road student loan refinancing application process
Laurel Road will pre-approve you without impacting your credit scores and let you know what rate you qualify for. But you will need to answer a few quick questions to get started, for instance:
- Information about your current loans
- Your highest degree
- Where you attended school
- Your estimated credit score
- Your preferred email
Laurel Road will perform a soft credit pull at the start of the application process to provide you with conditional rates and loan terms; this has no impact on your credit score. If you choose to move forward with your loan application, Laurel Road will make a hard credit inquiry so that we may view your full credit report and make final rate offers. These hard credit inquiries are common and necessary to obtain any loan, but do show up on your credit report.
Final thoughts on student loan refinancing
Laurel Road’s student loan refinancing programs are worth considering. The rates are competitive and often lower than your current student loan rates. You can pay off student loans fast and save $1,000s. Getting out of debt can be a huge relief—both emotionally and to your budget. Get a lower student loan rate today.
