Out of all the lenders we reviewed, Splash Financial has the lowest interest rates for student loan refinancing. The lender offers the following rates (lowest rate includes 0.25% Autopay discount): Variable: 1.89% to 5.51% Fixed: 2.63% to 6.25%
In this regard, what is a good interest rate for refinancing student loans?
Current student loan refinance rates
|Terms||Fixed APR range|
|5, 7, 10, 15 or 20 years||2.95% – 7.63%|
|5, 7, 10, 15 or 20 years||2.98% – 5.79%|
|5, 7, 10, 15 or 20 years||2.58% – 5.99%|
|Ready to compare all your student loan refinancing options with the lenders above? Compare lender rates now|
Furthermore, is there a downside to refinancing student loans?
The biggest drawback of refinancing your student loans is giving up the protections that you otherwise receive with federal loans, such as income-driven repayment plans.
Does Refinancing student loans hurt your credit?
Refinancing your student loans doesn’t typically cause a great deal of damage to your credit. … This won’t affect your credit at all, because it involves only a soft credit pull. Only if you find an offer you like and move forward with a full application will your chosen lender perform a hard credit check.
Still, while there’s no way to negotiate student loan interest rates on federal loans, there is a way you can get a small reduction on your interest rate. … So as long as you‘re not worried about overdrawing on your bank account, consider putting your student loan payments on auto-pay to save on interest.
Best student loan interest rates in April 2021
|Lender||Current APR Range||Min. Loan Amount|
|Federal student loans||2.75%–5.3%||None|
|Earnest||Starting at 1.05% variable and 3.49% fixed (with autopay)||$1,000|
|Ascent||5.84%–12.37% variable, 7.00%–14.00% fixed (with autopay)||$1,000|
The student loan interest rate for undergraduates taking out new federal student loans has dropped to just 2.75% for the 2020-2021 year, down from 4.53% last year. … The latest rates apply to new federal student loans borrowed between July 1, 2020, and June 30, 2021.
There is no reason to refinance your loans unless you end up paying less in interest. Use the student loan refinancing calculator below to find out how much you could save. You can qualify. You generally need a credit score at least in the high 600s and enough income to consistently pay your debts and other expenses.
6.17% average starting rate for 5-year, private student loans with variable rates. 7.64% average fixed rate for 10-year private student loans1? Private student loan rates can be lower; variable rates start at 1.25% to 2.25% APR, while fixed rates start around 4.25% to 4.75% APR.
The maximum repayment period is 25 years. After 25 years, any remaining debt will be discharged (forgiven). Under current law, the amount of debt discharged is treated as taxable income, so you will have to pay income taxes 25 years from now on the amount discharged that year.
Student loan forgiveness is now tax-free
Any student loan cancellation is now tax-free through December 31, 2025. So, if you get student loan cancellation from Congress or the president, you would not owe any income tax on the amount of student loan forgiveness you receive.
Many of the best student loan refinance companies are online lenders, like
- Citizens Bank.
- PNC Bank.
- Wells Fargo Bank.
- Laurel Road (via Key Bank).
- LendKey (via community banks).