+ LR-Icons

Student Loan Refinancing Rates

Published June 02, 2021

Tags:

Student Loan Refinance
Student Loan Repayment
Student Loans
Article

If you’re considering (or reconsidering) how to manage your student loan debt–and wondering if there’s a better option out there—you’re not alone. In 2021, 45 million Americans are facing the burden of student loan debt that now totals nearly $1.7 trillion. And while the student loan forgiveness debate wages on, you’re probably looking at your current day-to-day—which might have you looking at student loan refi options.

If you’d like to compare your student loan rate with Laurel Road, the following tables include repayment examples for variable and fixed rates. These examples show the APR, monthly payments, and total payments based a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount or the Laurel Road Linked SavingsSM discount.

Estimated Student Loan Refinance Payment Examples

Fixed Rate Loans

Term Interest Rate APR No. of Payments Monthly Payment Total Payments
5 Year
7 Year
10 Year
15 Year
20 Year

Variable Rate Loans

Term Interest Rate APR No. of Payments Monthly Payment Total Payments
5 Year
7 Year
10 Year
15 Year
20 Year

Check Your Rate

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

The London Interbank Offered Rate (“LIBOR”) benchmark used as the Index for this loan is likely to be discontinued after 2021 or perhaps sooner. Should LIBOR no longer be available, an alternative published benchmark will be selected to serve as the Index. Any alternative Index may behave differently than LIBOR; however, any Index changes will not change most other terms of the loan, such as the maximum interest rate payable during the term of this loan or the timing of any interest rate resets. For more information on the possible discontinuation of LIBOR, see the Alternative Reference Rates Committee website which is maintained by the Federal Reserve Bank of New York and is available at: https://www.newyorkfed.org/arrc.

This information is current as of June 02, 2021. Information and rates are subject to change without notice.

Understanding interest rates: fixed vs. variable rates

First, you’ll want to understand all of your current options, do you have federal or private student loans, is consolidating or refinancing the best option? How will current interest rates impact your loans? If you decide to refinance your loans, how can you find the best student loan refi rates? First, let’s talk about interest rates.

A fixed interest rate is an interest rate that generally stays the same for the life of a loan, or for a portion of the loan term, depending on the loan agreement. The advantages may seem clear, you’ll pay a set amount of interest on your loan and it won’t go up or down with the prime rate or other index rates, so you’ll know exactly how much you’ll pay each month.

A variable interest rate on the other hand can change periodically and rates may fluctuate with market conditions, meaning your monthly payment can also go up or down. But a variable rate often offers lower rates, and if interest rates drop then you could save money over the life of your loan. You can learn more about how variable rates are calculated here.

While all federal student loans have fixed interest rates, if you work with a private lender, you’ll often have a choice between a fixed or variable student loan refi rate. Deciding between a fixed or variable rate may come down to your tolerance for risk. Would you rather lock in a rate for the life of the loan, or take the chance to get a lower interest rate and potentially save along the way? When you choose between variable or fixed rate loans, think about whether having some uncertainty in the mix is worth the potential savings. For example, if you plan on paying off the loan quickly and have the means to do so, a variable rate could be a smart choice that ultimately saves you money.

How Laurel Road’s student loan refinancing rates compare

Each private lender has its own criteria for determining eligibility and rates, such as credit history, total monthly debt payments, and income. There are many factors that go into an offered rate for refinancing your student loans, including the type of loan, your financial history, credit score, and more.

Is refinancing right for you? Learn more.

If you’re ready to explore the benefits of refinancing, we’re here to help. Get started today by checking your rate options in five minutes to see if you could save. And if you’re looking to maximize your savings, we also offers additional discounts when you enroll in Auto-pay or open a Laurel Road Linked SavingsSM account during refinancing. Learn more here.

If you are refinancing any Federal Student Loans with us, you will no longer be able to take advantage of Federal Student Loan repayment options, including but not limited to Income-Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE). Additionally, Federal Student Loans offer deferment, forbearance, and loan forgiveness options that may not be available with Laurel Road. For more information about these benefit programs and other Federal student loan programs, please visit studentloans.gov.

In providing this information, neither Laurel Road nor KeyBank nor its affiliates are acting as your agent or is offering any tax, financial, accounting, or legal advice.

Any third-party linked content is provided for informational purposes and should not be viewed as an endorsement by Laurel Road or KeyBank of any third-party product or service mentioned. Laurel Road’s Online Privacy Statement does not apply to third-party linked websites and you should consult the privacy disclosures of each site you visit for further information.

Related Articles