Student loan refinancing is the only way to permanently lower the monthly payments on private student loans. But to do that, you’ll need a good credit score and enough income to cover your living expenses, credit card debt, and student loan payments.
If you want the best rates and repayment terms, you’ll need to have a clean credit history, a credit score in the high 700s, and agree to pay your loans over a shorter repayment period. Banks, credit unions, and other online financial institutions offer the lowest interest rates to people who agree to pay their loans faster. Depending on your loan balance, you might need to stretch the payments on your new loan over 15 to 20 years to get a payment you can afford.
Related: How to Refinance Student Loans
Use an online marketplace like Credible to shop simultaneously with multiple private student loan lenders. Keep in mind that, due to recent inflation, interest rates may be higher today than they were a few months ago. You might get a lower rate today if you choose a variable-interest-rate loan. When rates fall, you may be able to refinance your loans again to obtain a new loan with a lower fixed interest rate.
Related: How Often Can You Refinance Student Loans?