Details of Your Current Student Loan or Loans

Details of Your Current Student Loan or Loans

In order to make an informed decision about refinancing your student loans, you’ll need some information about your existing loans.

  • How much do you currently owe?
  • What is your current interest rate?
  • When is your expected payoff date?
  • What is the current payment on your loan or loans?

This information will be necessary in order to calculate and compare total interest and monthly payments on your existing loans to those of refinance loan alternatives. If you don’t have this information, check with your current loan servicer. You should be able to get this information by logging in to their payment website or by referencing a recent billing statement.

Once you have this information gathered, check out our Refinance Calculator to see how a Brazos Refinance Loan can help you meet your financial goals.

Lowering Your Interest Rate Can Mean Big Savings

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The term “interest” refers to the price lenders charge to lend money. Generally, interest rates are quoted on an annual basis and represented as a percent. The annual rate is converted to a periodic rate, typically daily, and is multiplied by the amount of debt outstanding to calculate the amount of interest that accrues. Payments on your loan are generally applied first to interest that has accrued, and the remaining amount reduces the amount of principal you owe.

How Much Can You Save?

Take a look at the example below, which compares several different types of student loans with a Brazos Refinance Loan.

How much can you save? Use our Refinance Calculator to compare your current student loans with a Brazos Refinance Loan.

Variable vs. Fixed Rates

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There are two main types of interest rates available: fixed rates and variable rates. Fixed rate loans have a set interest rate that does not change for the life of the loan. The rate of interest and your monthly payments will be the same throughout the life of the loan.

Because fixed rates increase risk for lenders, fixed interest rates tend to be slightly higher than comparable variable rate loans.

Variable rate loans have an interest rate that resets at certain intervals of time, typically monthly, quarterly, or annually. As rates change, the amount you pay each month will also change. Because the borrower assumes some of the risk of increasing interest rates, lenders tend to charge lower interest rates at the start of variable rate loans in comparison to fixed rate loans.

Refinancing Can Help You Pay Off Debt Sooner

Refinancing your student loan debt can also help you pay off your debt sooner, saving you a significant amount of interest.

“Term” refers to the amount of time you have to pay off your student loan. Many federal student loans begin with 10-year terms, though they may be paid back over longer periods if they have been consolidated or if they’re above certain amounts.

Longer term loans help reduce monthly payments by dividing the amount owed into a larger number of payments. But the longer the term, the more time interest accrues on the unpaid amount, meaning you’ll typically pay more over the life of the loan.

Because refinancing can lower the interest https://paydayloan4less.com/payday-loans-oh/ rate on your student loan debt, you may be able to afford a shorter loan term. By combining the lower rate with the shorter term, you can maximize the amount of savings you’ll realize through refinancing.

Shorter terms generally result in higher monthly payments, even when the interest rate is reduced, but will result in less interest paid over the life of the loan. The savings can be significant.