Student Loan Refinance advice

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
Hi FWers, long time reader. Saved/made a good amount of money from this forum, so appreciate the advice. Haven't seen a decent student loan refinance topic, and this could save me $1K-$2K so thought I'd get some advice and share.

Currently have Federal Student Loans averaging 5.9% fixed, so seems like a no-brainer for a refinance, whichever option I choose. I'm comfortable giving up loan benefits (IBR, in-school deferment etc...) given my current situation -- finished up a PhD, no chance I'm headed back to school for my own sanity at the least.

Best refinance loan options I've gotten are below, so I wanted to share and see if others have advice on how to pick -- lower payment long term to use $s elsewhere, or if paying off earlier is better since the interest rates are rock-bottom.
Fixed Rate Monthly Payment Repayment Term (Months)
5.2% $180 238
5.0% $210 181
4.8% $235 152
4.5% $280 118
4.4% $300 108
3.9% $370 82
3.4% $485 60

My background:

  • Income >$100K/year
  • RothIRA at >$60K
  • 401K at >$30K
  • Cash savings >$30K (emergency fund and savings for down payment)
  • Rent but looking to buy in the next 12 months -- this could impact my option
  • Averaging a net of >$3K/month, half in cash, half in retirement vehicles

Any advice from experienced FWers?

If it helps others, my best rates have been from SoFi and Earnest, but YMMV.

Thank you!

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

How much will a house cost you? Not sure that would impact things.

You should go for the low interest refinance loan.

jerosen said:   How much will a house cost you? Not sure that would impact things.

You should go for the low interest refinance loan.

Going to be higher due to a high cost of living metro, $350K-$400K for an old build 2BR/1BA (almost everything is old in this metro) and will be splitting the monthly payments with my significant other. Not going to make-or-break the bank, but taking a longer student loan refinance term and saving an extra $300/mo on the front end towards inevitable home maintenance is tempting.

You make too much to ever get any govt forgiveness cheddar, just private refinance with someone like commonbond or sofi and pay it off.  Id go with the 60 month.  $400/mo when youre pulling 100k is chump change.

I refi'd about 130k into a 1.9% 60 month at commonbond and am smashing 2k/month into them.

I got better rates from DRB and then later Common Bond so try those too if you haven't. I heard First Republic is good too. I paid my loans off in two years and have no regrets.

Thanks all! That helps a lot, sounds like the consensus is I shouldn't worry too much and go with the low interest rate and quicker pay off. And after it's paid off it will be $0/month!



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017