According to CNBC, over 44 million Americans carry a total of over $1.5 trillion of student loan debt. The average person holds over $37,000 in debt, with many owing over $100,000 and having interest rates as high as 14%. How is anyone supposed to crawl out of that much debt on an average salary of roughly $36,000 a year?
Crushing student loan debt affects many millennials and their boomer parents. However, there is a chance at relief with student loan refinancing. Renegotiating your interest rate can save you tens of thousands of dollars over the lifetime of your loan, but how do you go about getting a loan? LendKey makes finding great rates with transparent terms on student loan refinancing easy.
One Site, Thousands of Lenders
LendKey brings together over 13,000 community banks and credit unions that are able to offer the lowest rates with transparent terms. You can’t find these rates from most pop-up, fly by night online lenders. Depending on your credit and loan situation, you can calculate how much you can save with student loan refinancing right on the site. Plus, get multiple loan offers from reputable lenders.
Many people struggle to pay the minimum balance on their student loans, but lenders are happy to lower payments, why? The longer you take to pay the loan off, the more you give them. If you borrowed the average student loan amount at the median interest of 7%, your payments would be around $430 for 10 years with over $10,000 in interest payments. Can’t afford $430 a month? No problem! Pay $200 a month for 20 years and pay over $30,000 in interest payments. Refinancing at a lower rate can reduce your monthly payment as well as how much you pay for your loan overall.
Isn’t It Difficult To Get A Loan?
The traditional way of getting a loan is a pain, but LendKey makes getting a loan easy. Just plug in your student debt and credit information and you will get several loan offers. Just apply on the site and see your loan payments cut as much as half.
What About Student Loan Refinancing Scams?
There are a lot of lenders offering low interest student loan refinancing, but the terms are often convoluted and can end up costing you more. By teaming up with community banks and non-profit credit unions, LendKey is able to offer up low interest rates with terms that are easy to understand so you know exactly what you’re getting.
Should I Get A Fixed or Variable Interest Rate?
That really depends on how fast you can pay off your loan. Taking advantage of low variable interest rates will reduce how much you pay, but your payments will go up as interest rates increase. A fixed rate costs a little more, but you will pay the same amount throughout the entirety of your loan.
What If I Don’t Have Any Student Loan Debt?
Good for you! But there are many other reasons you could use a personal loan throughout your life. LendKey offers loans for home improvement as well. They not only hook you up with a reputable lender, but can recommend a reputable contractor as well.
Paying more for student loans than you have to is a huge financial mistake many people are making. Taking advantage of student loan refinancing via LendKey can save you tens of thousand of dollars over time. With your monthly payments cut in half, your money frees up for more important things like, saving, buying a house, or investing in your future.