It’s never been a better time to think about refinancing your student loans. With interest rates at record lows, refinancing can be a smart move for many student borrowersвЂ”assuming they’ve taken everything into consideration. There are currently more than 43 million people with student loan debt in the U.S., and borrowers carry an average balance of more than $39,351.
As a result, tens of millions of people stand to potentially save some money by refinancing their loans at lower interest ratesвЂ”particularly with student loan payments resuming in February after a two-year freeze. Here’s what to keep in mind before shopping around for a new rate.
Important things to consider before refinancing your student loans in 2022
The first thing to know about refinancing your student loans in 2022 is that the timing is perfect in terms of interest rates. вЂњVariable rates have nowhere to go but up,вЂќ says Mark Kantrowitz, a student loan expert who has written five books about scholarships and financial aid. вЂњBorrowers may want to refinance because the interest rates are at or near historic lows. You can potentially get a lower rate, especially if your rates are much higher from a few years ago.вЂќ
Second, borrowers who were enjoying a brief holiday from making loan payments due to the pandemic should prepare to start paying once again. Continue reading Student loan refinancing in 2022: How to do it, and what you should know first