Posted in Articles on Friday, January 19, 2018
You get choices when you refinance your student loans. Start today.
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If you graduated from college sometime in the last decade, then chances are you have student loan debt. Among all millennials, regardless of educational background, 42% have some student debt. According to a 2012 study, 66% of the graduating students from public universities and 75% from private institutions had student loan debt. All told, there is over $1 trillion in student loan debt in the United States.
Paying down your student loan debt is no easy task. This problem compounds if you have student loans with high interest rates.
Enter student loan refinancing
You might get some relief if you refinance — or consolidate — your debt. This process gives you a new loan that combines your federal and private student loans together.
- Tell us about your degree and student loan debt in the online application.
- Veridian and our refinancing partner, LendKey, will review the application.
- If approved, your current loans^ are consolidated into a new loan with Veridian. You get to take advantage of these potential benefits: one monthly payment, lower interest rate, lower monthly payment and saving thousands.*
The key motivation behind refinancing is to secure the lowest possible interest rate, and thus the best deal, but how can this be done?
Many factors go into determining the interest rates for student loans. For federal student loans, your interest rate depends entirely on the type of loan you took out and the time that you got it. The government sets new interest rates every year, depending on the economic climate at the time.
If you have a private student loan, the interest rate was determined by your specific lender. The process takes into account your individual financial situation as well as economic conditions.
Tips to help you get the best interest rate:
- Good credit score. Credit scores typically range from 300 to 850. The higher your credit score, the better. Paying late or missing a payment can lower this number.
- Reliable Cosigner. This person is responsible for your loan payments if you’re unable to make them. Graduates who don’t have much credit history sometimes have a cosigner.
- Automatic payments. When you agree to have your monthly student loan payments automatically taken out of your Veridian account, your interest rate gets even better – 0.25% APR (Annual Percentage Rate) lower. One less bill to remember and your payment is never late.
Choosing your rate
If you have a federal student loan, then you’re already familiar with a loan that has a fixed interest rate. This interest rate is locked in at a particular percentage, which was decided when you borrowed the money, and it stays there unless you refinance for a lower rate.
Whereas, a variable interest rate can change over the loan term, usually following the economic conditions.
It’s time to say goodbye to the higher interest rates you’ve carried and hello to a lower one. Refinance your student loans today. Veridian’s online application through LendKey is free and fast.
Adapted from LendKey.
^Benefits from your current loans may be lost if you refinance, such as interest rate discounts, principal rebates or loan cancellation benefits.