Student Loan Refinance Guide

Lowering Your Interest Rate Can Mean Big Savings

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.

Variable vs. Fixed Rates

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.


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.

Next: Paying Off Your Loans Sooner Means Big Savings

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BRAZOS RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. Brazos loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Program restrictions, other terms, and conditions apply. All loans are subject to individual approval and adherence to eligibility requirements and underwriting guidelines. Not all borrowers receive the lowest rate. If approved, your actual rate will be within the range of rates listed in this website and will depend on a variety of factors, including whether your loan has a fixed or variable interest rate, the term of the loan and your credit score. Rates and Terms are subject to change at any time without notice. Brazos loans are originated by Brazos Education Lending Corporation.

None of the information contained in this website constitutes a recommendation, solicitation or offer by Brazos or Brazos Higher Education to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

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