Refinancing your student loan at a lower interest rate could help you pay less each month and over the life of the loan. We’ve evaluated the best refinancing options based on rates, terms, process, fees, and overall quality.
First Tech Federal Credit Union provides competitive rates, but you'll require a membership to receive those benefits. To become a member, you'll have to meet some strict requirements.
UNDERGRADUATE LOANS: Fixed rates from 3.47% to 12.55% annual percentage rate ("APR") (with autopay), variable rates from 2.26% to 13.54 % APR (with autopay). GRADUATE LOANS: Fixed rates from 4.60% to 12.55% APR (with autopay), variable rates from 2.96% to 13.54% APR (with autopay). PARENT LOANS: Fixed rates from 4.48% to 13.05% APR (with autopay), variable rates from 2.06% to 14.04% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 06/08/2022.
Should you refinance vet school loans?
If you’re a veterinarian, you might have taken out private student loans to pay for your education. The type of loan you borrowed will determine if it makes sense to refinance. If you have a private student loan, here are some benefits of refinancing:
Get a lower interest rate: When you refinance vet school loans, you could get a lower interest rate than what you started with when you took out the original loan. This means that you will pay less money toward interest each month instead of paying down the principal balance on your loan.
Newer loan terms and repayment options: In addition to creating a more manageable payment schedule, refinancing can also give you access to newer loan terms and repayment options. This means you can stretch out your payments over a longer period, so your payments are lower per month. However, the costs of the loan will go up.
When sould you not consider refinancing vet school loans?
Refinancing student loans is a common way to lower your monthly payments. However, if you have a federal student loan, by refinancing you give up access to options, such as Public Service Loan Forgiveness and income-driven repayment. Federal student loans are the best option because of their flexibility and protection benefits.
How much could you save when refinancing vet school loans?
Refinancing your vet school loans could save you thousands of interest payments. The amount of money you save depends on your current interest rate and the length of time until you pay off your loan. If you have good credit, lenders may offer lower interest rates than what you’re paying.
If you’re planning to refinance, here’s an example of how much you could save:
Loan amount: $100,000
Months remaining: 120
Interest rate: 5%
Monthly payment: $1,012
Lifetime costs: $121,494
Based on the above scenario, if you refinance at a 3% rate, your monthly payments will drop to $966 and your lifetime cost will drop to $115,873.
How to refinance veterinary school loans?
Here’s how to refinance your vet school loans:
Research lenders:Many different lenders offer student loan refinancing. Compare them based on fees, interest rates, and customer service ratings before deciding on one.
Get multiple rate estimates: The next step is to get a sense of how much you could potentially save by refinancing your loan. You’ll need to request information from several lenders and compare their offers.
Choose a lender and loan terms:Once you’ve identified the best interest rate, choose the lender you want to work with and get their loan terms in writing before proceeding further with the application process.
Sign the paperwork: You’ll need to provide signatures on some documents before any money changes hands. Make sure that everything has been explained clearly before signing anything.
Start making payments on your new loan: Once you have signed the paperwork and the loans have been issued, make your first payment on time. The lender may charge late fees and penalties if you do not make your payments on time. If you are having trouble paying your loan, contact the lender immediately to discuss options.
Is refinancing student loans better than consolidation?
Refinancing your student vet loan can save money, while consolidation is a great option for ensuring you maintain federal loan benefits.
If you want to maintain certain benefits under federal law, for example, the ability to defer payments while studying or working abroad, consolidation might be right for you. Consolidation allows you to combine multiple federal loans into one larger loan with a single monthly payment. In addition, federal law allows borrowers who have consolidated their loans to make additional payments without affecting eligibility for Public Service Loan Forgiveness (PSLF).
How to choose the best vet school loan refinancing option
Here are some tips to consider when choosing a refinancing option:
Check your credit score: Before looking at different lenders, ensure your credit score is high enough to qualify for the best rates. Some lenders will only work with borrowers with a score of 700 or better, while others may go as low as 600. If your credit is not in good enough shape, consider taking steps to improve it before applying for a new loan.
Compare interest rates and fees: When comparing different lenders, consider both interest rates and fees before making a final decision. Different lenders may have lower interest rates but higher fees or vice versa. You should also compare the terms each lender offers, such as how long it takes to pay off and whether there are any prepayment penalties if you pay off early.
Flexible repayment options: Lenders usually have a standard set of requirements that they offer all applicants, but if you have any specific requests, you’ll have to speak with them, so they can give you advice based on what’s available for your situation.
Customer service: Lenders often have customer service ratings from either the Better Business Bureau or the Consumer Financial Protection Bureau (CFPB). If a lender has low ratings from either organization, it could mean that they don’t treat their customers well and may not be worth working with.
