Are your finances strapped? You may be looking for fast and simple ideas to cut extra expenses. An effective — and often underutilized — solution to free up more room in your monthly budget could be lowering your student loan payment.
It’s widely known that student loans are a serious problem across the country, burdening hundreds of thousands of young people and families with high-interest debt. If money is tight and you feel cornered by your student loan debt, student loan refinancing can be one of the best ways to drop your student loan bill.
Decreasing your student loan bill can add essential funds back into your budget every month. For many student loan borrowers, student loan refinancing is an excellent option to lower their payments – quickly and easily.
First, what is student loan refinancing? Refinancing is a debt management strategy where you take out a brand-new loan with a different private lender for the amount of your existing college debt. This process combines all your separate student loans into a single loan — with a new interest rate and updated terms of your choosing.
One of the great things about refinancing is you can consolidate federal student loans, private student loans, or both. Plus, a student loan refinance is customizable to your financial needs and student loan payoff goals. So if you’re looking to lower your student loan payment, refinancing might allow you to do just that — by selecting a longer repayment term than you currently have.
For example, many student loan borrowers are on a standard 10-year repayment plan. However, student loan refinancing often provides the opportunity to extend your term significantly. PenFed offers repayment terms up to 15 years, for those who qualify. You’ll be paying off your student loans for a lengthier time period by using this strategy. And often, you’ll end up paying more in total interest over the length of your refinanced loan. But if you’re short on expendable cash, choosing a longer term can substantially lower your student loan payment — which could be a top priority to give your budget some breathing room.
In addition to dropping your student loan payments, student loan refinancing provides many other useful benefits.
If you’re in a financial situation where lowering your student loan bill could provide immense relief, PenFed Credit Union is an excellent choice. Currently, PenFed offers extended repayment terms of 12 and 15 years – providing the flexibility to get the monthly payment you need.
Ready to see the interest rates and repayment terms you qualify for? It takes less than 5 minutes with PenFed. Simply fill out some basic information about yourself and quickly view your pre-qualified options with PenFed’s Find My Rate tool.
See your student loan rate and term options now and take a big step toward financial peace of mind.
To receive any advertised product, you must become a member of PenFed. PenFed Credit Union is federally insured by NCUA.