Student loan refinance calculator is a tool to calculate your student loan refinance statistics. Go through the steps mentioned below to calculate the refinancing statistics.
- You need to insert the original loan amount, which you have borrowed and want to refinance. You may have a blend of private and federal loan or you may have many federal loans for different time periods. If you are willing to refinance all the loans then enter the total sum of amount you borrowed. Also, if you are willing to refinance only a part of your loans like private loan, then enter the total amount of that particular loan.
- For the calculation of multiple loans which have different interest rates, you can use student loan refinance calculator to get the correct result by entering the loan separately with its different interest rate. To get a rough average you can enter the aggregate of interest rate of the various loans you want to get re-financed.
- You need to enter the time period of loan terms which you want to get refinanced. Generally, all the federal student loans get a minimum time period of 10 years unless you change it to an income driven repayment plan or consolidate it. The range of private loan terms is from 5 to 20 years.
- You need to enter the amount you still owe on the loans which you want to get refinanced including the accrued interests. This amount can vary from the amount you borrowed initially, because it depends on the interest accrued and the amount which you have already paid.
- You will have various term periods, which will depend on the lender you go along with. You need to calculate using the student loan refinance calculator to know how the term period will affect the repayment amount. The less your term period will be, the lower shall be the interest rate you have to pay and the higher shall be your monthly payment will become. Well by decreasing the interest rate, you will certainly save money in long term.
- To know about the new interest rate, you can click on “Get personalized refinance estimates” – a green button. Once you get the estimate of the new interest, you can plug various rates in the calculator to find the amount you can save from various rates. Until and unless you apply for the new rate, you won’t get any offer.
- The loan refinance calculators work on the assumption that you will pay the minimum monthly payment without any extra amount. Moreover, paying more than the minimum monthly payment will reduce your interest rate. But it is wiser to save money for retirement and pay the high- interest debts.
- If you have a private loan, then in that case you don’t lose anything by refinancing. And if you have a federal loan then you should make the decision of refinancing meticulously (using student loan refinance calculator). Also, once you refinance the federal loan, you won’t be able to take the benefits of federal programs like income driven payment and loan forgiveness.