The Best Student Loan Refi
Options According to Juno
Approximately 42 million adults in the United States currently hold student loan debt. This works out to about one in eight people. Having to carry these loans over time can be a huge burden and can even keep individuals from advancing their lives in other ways—such as buying a house or starting a family.
Refinancing student loans can help people pay off their debt faster so their money can be spent elsewhere. Juno is a new kind of company that instead of being a lender itself, takes bids from a pool of lending companies to give their group members the best possible student loan deals. Since Juno backs up their offers with matching guarantees, you know they’re confident in their ability to negotiate the best loan terms out there.
Below, we’ll take a look at the best student loan refi options according to Juno.
Why Refinance Your Student Loans?
First though, what is refinancing, and why do it? A student loan refinance can be a great way for borrowers to save money or make repayment more feasible. Why wouldn’t you opt for an offer that can help you get to a better place financially?
The process of refinancing a student loan is pretty straightforward. You’re essentially taking out a new loan to pay off and replace your current one. This can be extremely helpful over the long term if you’re able to secure a loan with better terms.
While there are some pretty clear potential benefits to refinancing, such as lower interest rates, more attractive payment plans and the ability to consolidate loans, there are things borrowers need to look for before signing. Certain individuals are going to benefit more from refinancing their loans, and others actually might want to think twice before starting the process.
Who Will Benefit Most from Student Loan Refinancing?
Before you go out and start refinancing loans, you need to make sure it actually makes sense for someone in your position. If you’re looking to refinance with a private loan, your credit score is going to play a significant role in the process. Those with higher credit scores are going to get much better offers, while those with low scores might not be able to refinance at all.
Those with federal student loans and are expecting to take advantage of income-based repayment or debt forgiveness plans should also pause before refinancing, as those perks can be wiped out by a refi. In general, those with at least okay credit (or those who can get a co-signer) and don’t need any federal programs, should refinance their student loans if they can find a better interest rate and other terms.
What are the Best Student Loan Refi Options?
Now that you’ve gotten an overview of student loan refinancing, it’s time to look at Juno’s picks for the best refi options. Here’s where Juno thinks those paying off student debt will benefit most when refinancing loans:
- Best Student Loan Refinancing for Most People – Earnest or Splash
- Best Student Loan Refinancing for Medical Professionals – Laurel Road
While these have been identified as the best deals through negotiations with Juno, you can actually get a rate reduction by signing up with Juno, which the lender allows in order to get more business though Juno’s member group.
Generally speaking, now is a pretty good time to consider refinancing your student loans. Interest rates are extremely low versus the historical norm. Even if rates do continue going down more, you can opt to refinance again to save yourself even more money.
Those who want to lock in a low fixed rate refi should take advantage of this opportunity. Consider if any of these best student loan refi deals will work for you, as it can save you quite a bit on interest payments over time, especially if you can switch from a high variable-rate to a low fixed-rate loan.