How to Lower the Interest Rate on Student Loans

When you applied for your school loans, you signed a promissory note that you would pay them back at the going interest rate for student loans. This essentially locked you in on the rate offered at the time. If you do your homework, however, you may be able to realize a significant savings by lowering your interest rate.

Why You Should Try

Many folks wish to lower their interest rates after they complete school to make their debt more manageable. Here are some way to ease the burdon of student loan interest rates.

  • Consolidate the debt: You can get another loan that will consolidate all of your student loans into a single monthly payment.
  • Pay off the debt: Easier said than done for most people
  • Make larger payments: Perhaps you are looking for a student loan interest rate reduction simply to keep from paying so much in interest. If this is the case, then you can pay a little more each month which will reduce your principal, shortening the term of the loan, saving you interest.
  • Borrower Benefits: Some lenders will have programs in place which can lower your payment such as electronic debit. This streamlines the lenders collection of the payments and you save money.

Beware of Unscupulous Lenders

Many fradulent or unscrupulous lenders prey on people trying to refinance their student loans. Check out their credentials and read the fine print before signing any papers.

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