Student Loan Refinance Guide

Pay Off Your Debt Sooner for Big Savings


Refinancing your student loan debt can also help you pay off your debt sooner, saving you a significant amount of interest.

“Term” refers to the amount of time you have to pay off your student loan. Many federal student loans begin with 10-year terms, though they may be paid back over longer periods if they have been consolidated or if they’re above certain amounts.

Longer term loans help reduce monthly payments by dividing the amount owed into a larger number of payments. But the longer the term, the more time interest accrues on the unpaid amount, meaning you’ll typically pay more over the life of the loan.

Additionally, lenders typically charge higher interest rates for longer term loans because of the increased risk to them.


Refinancing Can Help You Pay Off Debt Sooner

Because refinancing can lower the interest rate on your student loan debt, you may be able to afford a shorter loan term. By combining the lower rate with the shorter term, you can maximize the amount of savings you’ll realize through refinancing.

Shorter terms generally result in higher monthly payments, even when the interest rate is reduced, but will result in less interest paid over the life of the loan. The savings can be significant.

 

How Much Can You Save?


Take a look at the example below, which compares the total amount of interest paid for loans with different terms and interest rates.

How much can you save? Use our Refinance Calculator to compare your existing student loans to a Brazos Refinance Loan.

Next: Refinancing vs. Consolidating with the Federal Direct Loan Program

Previous: Lowering Your Interest Rate Can Mean Big Savings

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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