Student Loan refinancing made simple
Refinancing could save you money or make managing your loans easier and less stressful.
Simplify your borrowing by refinancing
Student loan refinancing is the process of replacing your current student loans with a new loan from a private lender, ideally one that offers better terms. Whether you have federal or private student loans (or a combination of both), refinancing could help you lower your interest rate, adjust your repayment schedule, or even simplify your monthly payments by consolidating multiple loans into one.
Why refinance student loans?
Refinancing can be a smart financial move, but it’s not for everyone. Here are some situations when refinancing could save you money and make managing your loans easier:
- You Have a Good Credit Score: If your credit score has improved since you initially took out your loans, you could qualify for a much lower interest rate.
- Your Income Is Stable: With a steady paycheck, refinancing can help you lock in better terms and make managing your loan less stressful.
- Interest Rates Have Dropped: If rates are lower now than when you originally borrowed, refinancing could save you money on interest.
- You Want to Pay Off Loans Faster: If you’re looking to become debt-free sooner, refinancing to a shorter loan term can help you get there quicker.
What are the benefits of student loan refinancing?
- Lower Interest Rates: Refinancing could help reduce the total amount of interest you pay throughout the life of the loan, saving you thousands of dollars in the long run.
- Lower Monthly Payments: If you extend the loan term, you can lower your monthly payment, freeing up more of your income for other priorities. (But keep in mind you may ultimately be paying more in interest over the long term.)
- Simplified Payments: By consolidating multiple loans into one, you only have to keep track of a single monthly payment, making it easier to manage your finances.
- Flexible Loan Terms: You can choose a loan term that fits your financial goals, whether it’s paying off the loan faster or reducing your monthly obligations.
Here's how it works
Your student loans can be refinanced if they are in grace or repayment after you’ve graduated. You can refinance all or some of your student loans—whichever option is best for you. Some borrowers choose not to refinance their federal student loans so they can hold on to existing benefits such as income based repayment plans or loan forgiveness.
1. Application
Complete the application and get approved.
2. Verification
Verify documents and payment information.
3. Payoff
Funds are sent to your previous lender.
4. Repay
Pay one new payment of your refi loan.
Explore more free resources
At MIT Federal Credit Union, we partner with Student Choice to offer innovative, fair-value student lending options. We also offer personal, one-on-one consultations for all your financial aid, repayment, and refinancing questions.
| Product | Term | APR1 80 | Estimated Monthly Payment per $100080 | Apply Now |
|---|---|---|---|---|
| Personal Loan + Co-Application/Guarantor Loan | 12 Months | 8.50% | $87.21 | Apply now |
| 24 Months | 8.75% | $45.47 | Apply now | |
| 36 Months | 9.00% | $31.80 | Apply now | |
| 48 Months | 9.25% | $25.00 | Apply now | |
| 60 Months | 9.50% | $21.00 | Apply now | |
| Tuition Assistance Loan | 12 Months | 8.50% | $87.21 | Apply now |
| Overdraft Protection Line of Credit | Line of Credit | 10.00% | N/A | Apply now |
| Fuel Assistance Loan | 12 Months | 6.50% | $86.29 | Apply now |
| Express Loan | 12 Months | 17.75% | $91.56 | Apply now |
| Accessibility Lifestyle Loans | 12 Months | 8.00% | $86.99 | Apply now |
| 24 Months | 8.25% | $45.34 | Apply now | |
| 36 Months | 8.50% | $31.57 | Apply now | |
| 48 Months | 8.75% | $24.77 | Apply now | |
| 60 Months | 9.00% | $20.76 | Apply now | |
| Rental Assistance | 12 Months | 8.25% | $87.09 | Apply now |
| 24 Months | 8.50% | $45.45 | Apply now | |
| 36 Months | 8.75% | $31.68 | Apply now |
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