3 Easy Ways to Lower Your Student Loan Interest Rate
Student loan debt is a huge problem in the United States. Student loans now makeup over 1 trillion dollars of total U.S. consumercan be crippling for those who cannot afford to repay them on time or in full.
The average student has $37,172 in student loan debt at graduation (that’s more than what they spent on their education!), and interest rateshundreds of dollars each year to that amount. In this blog post, we’ll discuss 3 easy ways lower your student loan interest rate!
Student loans canWhile they are necessary for many students who need a low-interest loan to attend college or university, it is to know how lower the interest rate on your student loan with ease!
There are three easy ways to lower your student loan interest rate at the moment right now: Have a co-signer, consolidate multiple loans into one consolidated loan, and apply for forbearance.
With these three steps combined and some luck, you will see those high-interest rates decrease by at least 1%! With these three simple steps and some luck from the universe (ortiming), you will see that your debt will become much more manageable.
Lower your interest rate by refinancing
Refinancing a student loan can lower your interest rateand save you hundreds of dollars each year. If you refinance your student loan, it’s to make the right choice.
When you refinance your student loans, you typicallylose your federal benefits. If you take out subsidized federal loans, you’ll still have access to repayment, income-based repayment, and forgiveness programs.
For yourloans, you will likely not benefits. Some private income-based repayment and forgiveness programs. It’s to do your research and find a private lender that offers
Lower your interest rate by consolidating
The three easy ways you can lower your interest rate by refinancing, consolidating or consolidating a loan, or calling your current student loan servicer can be found below: Check Your Loan’s Qualifications One of the best ways to lower your interest rate is to have a quality student loan.
Call your student loan servicer and inquire if your student loan is eligible for refinancing or consolidation. In some cases, student loans do not qualify for refinancing or consolidation, and therefore cannot be lowered.
Before calling your servicer, it’s best to check your own loan’s website to find out if it qualifies. Click here to check your student loanstatus.
Lower your interest rate by applying for income-based repayment
If you’re getting student loans to finance your education, you should first consider the federal student loan interest rate (generally 10.5%).
You have three options for this, depending on your income level: 1. Standard repayment – The federal government calculates your income, and you’re responsible forup to a pre-determined limit of 15% of your modified adjusted gross income.
This monthly amount is adjusted up or down based on income. (This also applies to private student loans.) 2. Income-Contingent Repayment – If you have a “low” income and your payments are high, you can request a modificationyour loan. If you qualify, your monthly payment amount is based on your modified adjusted gross income (MAAGI), or the standard repayment amount.
While it’s never easy to pay off student loan debt, making small changes can help bring your paymentsultimately help your goals.
The more often you make your student loan payments on time and in full, theyour interest rate will fall, and the sooner you can save thousands of dollars! Like this post?