Interest rates are poised to keep rising.
Interest rates have been slowly inching upward and while they are still at historic lows, they could go up again in 2017 according to some experts. Refinancing today means locking in a rate—and with a fixed-rate loan, keeping it there—for the life of your loan. You can read more here on how changing interest rates affect your student loans.
Every day at a higher rate is less principal you are paying down—that means you’re paying more interest over the life of the loan.
A penny saved is a penny earned. You can plug in your own numbers with our student loan calculator. Here’s a quick scenario to see how it works. If you have a balance of $56,000 in student loans with five years left on your term and an average APR of 7.8%, you could save more than $3,600 if you refinanced into a fixed APR of 5.5% with the same term. That’s money on the table for you.
Grace period is coming to an end.
For many 2017 graduates, the student loan grace period is coming to an end this fall. If you have multiple student loans, you might consider consolidating and/or refinancing into a better APR. You can read more about how to strategize your student loans after the grace period ends.
Holiday season is coming up. That extra cash could help.
One of the benefits of refinancing with Earnest is the ability to set your own monthly loan payment according to what works best with your budget. That means if you’re currently paying $1,500 a month on your student loans but $1,000 would work better—you can do that. Use Earnest’s Precision Pricing to create a loan with your ideal monthly payment. We adjust the term and rate to match your desired payment. In short: This could be a great way to help free up additional cash flow for the holidays and beyond.
The financial picture is better for most people in September than in January due to holiday debt.
Let’s face it, the holidays typically mean spending a lot more money and racking up credit card debt. If you’re hoping to apply for a loan—whether that’s refinancing for student loans or a home loan—you want to have as little debt on your balance sheet as possible in order to qualify for the best possible rate. In other words, don’t wait until the New Year to apply for a loan as your profile could be stronger today than it will be in January. You can read more here for some additional tips about improving your financial profile before applying for a loan.
Want to learn more about refinancing? Download Earnest’s free ebook.