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The right rate

POSTED IN ARTICLES ON MONDAY, JANUARY 20, 2020

Should you refinance your student loans with a variable or fixed rate?

If you're thinking about refinancing your student loans, you'll have plenty of decisions to make. One of the biggest is the type of interest rate you get with your new loan: fixed rate or variable rate. There are advantages and disadvantages to each type.

 Fixed Rate

A fixed rate will be the same at the end of your term as it was at the beginning.

  • Locked rate gives you predictable payments
  • Your payment won't increase no matter how high national interest rates go

 Variable Rate

A variable rate may increase or decrease over time as the Federal Reserve raises and lowers its key rate.

  • Starts with lower payments than fixed rate
  • Your payment decreases if rates fall without needing to refinance

You'll need to carefully weigh which type of interest rate is right for you. For instance, a variable rate might be more attractive if national interest rates look set to fall in the future or if you expect your income to rise quickly. 

If you'd like to get professional guidance about your unique financial situation before you make a decision, email us to schedule a free appointment. If you're ready to apply for student loan refinancing, it only takes minutes online through our partner, LendKey. 

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* Benefits from refinancing may vary and specific outcomes are not guaranteed. Your actual savings will depend on factors including, but not limited to, your existing loan details, credit score, new rate (subject to change) and new term. Applications are taken online at veridiancu.org/studentloan, and Veridian membership is required to qualify. Visit website for information on credit costs and terms. LendKey will process the loan application and service your loan, including the monthly payment.


View LendKey disclosures, rates, and fees.

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