I like getting big results for minimal effort.

A ten minute phone call to negotiate a lower cable/internet bill to save $40 a month or $480 a year is an example. As is taking ten hours to prepare for a performance review that nets a $5,000 raise.

Another opportunity that nets a big result with minimal effort is refinancing student loans. A few hours of work, can save you tens of thousands of dollars over the course of your loan.

Why Refinance Your Student Loans

For any debt, you want the lowest interest rate possible.

A lower interest rate allows you to:

  • Reduce your monthly payments
  • Reduce your total payment amount over the lifetime of the loan

Then, there’s student loan consolidation. Consolidation is when you combine multiple loans into one. The benefit here is simpolication. Now, you’re only paying off one loan, in addition to a lower rate.

Let’s look at an example.

Say, you have two student loans:

  • Loan # 1 is a $24,000 loan at 6.8% for 10 years with a minimum payment of $276
  • Loan # 2 is a $8,000 loan at 4.66% for 10 years with a minimum payment of $96

With these two loans, you’re paying a total of $372 per month for ten years. If you multiply this by 120 (10 years and 12 payments per year), you’ll pay a total of $44,640.

Now, say you consolidate and refinance both loans to one with a lower rate. For our example, let’s say your interest rate is 4%.

Now you have one $32,000 loan at 4%. Now, over the lifetime of the loan you’re making monthly payments of $324. Your total payments over ten years are $38,880.

By refinancing and consolidating your loans, you reduce your monthly payment by $48 and save $5,760 over the course of the loan.

Why Private Lenders Can Offer Lower Rates

Government student loans suffer from adverse selection. Unlike private lenders, Government student loans (Stafford and Perkins) can’t turn people away.

While this is good news for those with bad credit, those with good credit pay a higher rate.

This is where private lenders come in.

Private lenders cherry pick those with good credit and offer them loans at a lower interest rate.

The Disadvantages of Private Lenders

Even though you may be paying a lower interest rate, there are some disadvantages to having a private lender.

Government loans do come with some flexibility.

Specifically,

  • Loan Forgiveness – Forgives loan for people working in public service careers after they’ve made ten years of payments.
  • Income-Based Repayment Plans – Programs such as IBR, REPAYE, ICR of PAYE allow you to adjust your monthly payment based on your current level of income.

By refinancing with a private lender, you lose these options.

Why I Recommend Credible To Refinance Your Student Loans

It’s estimated 1 out of 3 people will benefit from refinancing student loans.

The quickest way to discover if you’re eligible is to contact lenders to see what types of refinancing rates are available.

Credible makes this process easy.

If you’ve ever used Kayak to book a flight or hotel, you’ll enjoy the experience of shopping for lower rates with Credible.

Credible allows you to refinance student loans quickly by aggregating offers from top lenders for both federal and private debt.

About Credible Student Loan Refinancing

Credible was founded in 2012 in San Francisco with the mission to make student loan refinancing fast and easy.

  • It’s free to use with no hidden origination, service, or prepayment fees
  • You get to check rates without harming your credit score
  • Everything is online, so it’s incredible efficient
  • They have a 9.3 rating with over 400 reviews on TrustPilot
  • They refinance both federal and private loans, plus Parent PLUS loans
  • They vet the quality lenders from the bad

The average person who uses Credible to refinance saves $218 a month and $18,668 over the lifetime of their loan.

Final Thoughts On Credible Student Loan Refinancing Review

Student loan refinancing with Credible offers a fast, no risk way to  save a lot of money today and in the future.  The entire process can be done in as little as 24-48 hours. Check now to see if you can save money refinancing with with this link.