Lower Interest Rate Student Loan Refinance

Refinancing is a great option for those who want to lower their interest rate, get rid of private loans, or consolidate all their loans into one new loan. The benefit of refinancing student loans is that it can reduce monthly payments and save you money over the life of your loan. In fact, SoFi borrowers have saved an average of $4,841 over five years!

Lower Interest Rate Student Loan Refinance

Refinance your student loans to save money.

If you’re looking for a way to lower your monthly payments, interest rate, or get a longer term on your student loans, refinancing is an option. Refinancing means taking out a new loan and using that money to pay off your old loans.

It’s important to note that if you refinance federal student loans—like Stafford or Perkins loans—you won’t have access to some of the protections that come along with having those loans (like income-driven repayment plans). That said, refinancing will allow you to pay off those federal student loans faster while keeping them under one roof so they can be consolidated later on.

If you’re not sure whether this is right for you or which company offers the best rates, check out NerdWallet’s list of top lenders here! You’ll find plenty of information about how each lender works as well as reviews from borrowers who’ve been through the process themselves before deciding whether or not it’s worth pursuing yourself.

The benefits of refinancing with SoFi.

  • Lower interest rates and monthly payments. By refinancing with SoFi, you can save hundreds or even thousands of dollars per month by lowering your interest rate and monthly payment. Because we take care of all the paperwork, you can focus on paying down your loans faster while staying on track to graduate debt-free.
  • Eliminate the need to make extra payments. Refinancing means that you’ll pay off your loans sooner because we’ll help lower them to one low fixed rate over time—meaning there’s no need to make extra payments or worry about missing any payments in order to save big in the long run (and ensure they’re paid off faster). We also offer a variable rate option if market conditions change after getting a student loan refinance—but we’ll never change our commitment to helping our members pay less for their education and get ahead faster!

Financial advisors for life’s big decisions.

At SoFi, we are here to help you through life’s big decisions. We want to make sure that you are in the best position possible, both financially and otherwise. That’s why our financial advisors are ready and waiting to help with any questions or concerns that may arise when considering refinancing your student loans.

How does student loan refinancing work?

Refinancing is a process that combines multiple federal or private loans into one new loan. The interest rate and term length you choose will determine your monthly payments and interest rate.

Fixed Interest Rate: Fixed-rate student loans have an interest rate that doesn’t change over the course of your repayment period, as opposed to variable-rate loans where the interest rate can rise or fall based on economic conditions.

Variable Interest Rate: Variable-rate student loans typically have lower starting rates than fixed-rate ones, but it’s important to note that this may not be true for all lenders in every case (for example, some lenders only offer variable rates after borrowers have made several consecutive payments). If you’re looking for more stability in your education financing options, consider refinancing into a fixed-rate loan instead of taking out a new variable deal each time one expires.

When should I refinance my student loans?

If you have a high interest rate on your student loans, then refinancing might be the right decision for you. However, it is important to consider whether or not refinancing is worth it when assessing the pros and cons of this process.

For example:

  • If you have a longer term loan (i.e., a 10-year loan instead of 5 years), then refinancing may be a good idea because your monthly payment would be lower after refinancing if the interest rate is lower. In addition, interest accrues on student loans over time and can add up quickly if left alone without paying them off early (which can also help improve credit scores). Refinancing could help reduce those costs by lowering overall payments even further with private lenders who offer low rates.
  • If your credit score has improved since taking out these loans due to increased income or other factors such as being more responsible with other debts, then refinancing may also be beneficial because lenders will be more likely to approve your application with better scores than before applying for refinance options in general.”

Step 1: Apply online in minutes.

  • Apply online in minutes.
  • Upload documents, including your tax return and W-2s. We’ll use this data to run a soft credit check and determine if you qualify for a lower rate or not. If you do, we’ll contact you with the details of your loan refinancing offer within 24 hours—and it only takes one business day for us to process an application once it’s been approved!

Step 2: Upload documents and check your rate.

Next, you will be prompted to upload the supporting documents that you have prepared. This includes:

  • Your current student loan information, including your name, current balances and interest rates.
  • A copy of your most recent federal income tax return (the IRS requires this if you want to use a co-signer).
  • A recent bank statement or other proof of income such as a pay stub or letter from an employer. During this process, it can sometimes be helpful to have someone else look over the documents with you in case they need clarification before submitting them online.

After submitting all required documents online and checking your rate (which should only take a few minutes), click “submit” on the page and review whether or not refinancing could save you money! If it does offer lower interest rates than what you currently have now then we will then provide instructions on how to go about completing the refinance process.

Step 3: SoFi will finalize your transcript evaluation.

In the third step of the refinancing process, SoFi will finalize your transcript evaluation and send you a loan offer. This can take anywhere from one to three business days.

Once you receive your official offer from SoFi, you’ll have 14 days to accept it. At this point, all remaining fees will be due (including origination fees). If you decline the offer or fail to make any payment on time, your application may be cancelled and no further action will be taken by SoFi until another loan request is made by either party.

Step 4: Receive your funds.

Once you’ve completed the application process and your loan request has been approved, you’ll be able to receive your funds.

In most cases, you’ll receive a check or direct deposit. This money can then be used for whatever purpose you see fit—whether it’s paying off existing student loans or other debts, making a down payment on a home or paying for college tuition.

Refinancing can lower your interest rate and monthly payments by combining multiple federal or private loans into one new loan with a fixed interest rate and term length you set.

Refinancing can lower your interest rate and monthly payments by combining multiple federal or private loans into one new loan with a fixed interest rate and term length you set.

You may have heard about student loan refinancing but don’t know what it means, or why it’s important to you. This guide will explain how student loan refinancing works and why you should do it.


Whether you’re a career changer, parent re-entering the workforce or just looking to save money on your student loans, SoFi has options for you. We make it easy to refinance your student loans in as little as five minutes with no prepayment penalties and no origination fees.

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