How Recent & Upcoming Fed Rate Cuts Could Save You Thousands on Student Loan Refinancing
The Fed’s recent 0.5% rate cut could lead to lower student loan interest rates across the board, offering you a chance to save big on your loan. A lower rate could potentially save you thousands of dollars over the course of your loan, and even lower your monthly payment.
If you’re considering taking out a new private student loan or refinancing your current one, now is the perfect time to explore your options to lock in a better rate. Keep reading to see if refinancing is the right move for you.
What is Student Loan Refinancing & is It Right For Me?
Whether you have federal or private student loans, refinancing is an option to secure a better deal. Refinancing involves taking out a new loan to replace an existing loan with a different rate or terms. With refinancing, you could secure a lower interest rate and improved repayment terms, using it to pay off your old loans by making single payments on the new loan.
You should consider refinancing your student loans if:
- You have private student loans with a variable interest rate
When federal interest rates drop, it could be the perfect time to refinance your private student loan with a variable rate. Locking in a lower, fixed rate now can stabilize your payments, and potentially save you thousands on interest over the life of the loan.
- Your financial situation has improved
If you’ve graduated and scored a job, your credit score, debt-to-income ratio, and annual earnings are all likely to have improved. These factors could help you qualify for better terms regardless of the macroeconomic situation.
Why Refinance Your Student Loans with SoFi?
SoFi makes refinancing your private student loans simple and affordable with low, competitive rates and no hidden fees. Here’s why SoFi stands out:
- New, Lower Rates: SoFi just dropped rates so you can save even more, with the possibility of refinancing again if interest rates drop further.
- No Fees: You won’t pay any application or prepayment fees, so every dollar saved can go directly toward reducing your loan balance.
- Flexible Repayment Options: SoFi offers a range of repayment terms, allowing you to personalize your loan to work for you—whether that’s paying off your loan faster or lowering your monthly payments.*
How to Get Started to Refinance Your Student Loans with SoFi in 3 Easy Steps:
Curious how much you could save by refinancing with SoFi? Here’s how you can get started in three easy steps:
- Check Your Rate: In just two minutes, you can view your personalized rates with no impact on your credit score.†
- Choose Your Terms: Select a repayment term and monthly payment plan that works best for you and your budget.
- Complete the Online Application: Finish filling out your info online. This step will include a hard credit pull.*
Click here to see your rate in 2 minutes with no commitment.
*SoFi Disclosures:
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Additional terms and conditions may apply. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., have graduated with an associate degree or higher from an eligible Title-IV-accredited college or graduate program, and meet SoFi’s pre-established underwriting requirements, including verification of sufficient income to support your ability to repay; see SoFi.com/eligibility. Lowest rates reserved for the most creditworthy borrowers. You may pay more interest over the life of the loan if you refinance with an extended term.
SoFi refinance loans are private student loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Information current as of 9/26/2024 and subject to change. SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, SoFi will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.