I’m currently in the payback phase of a massive amount of federal and private student loan debt.
It’s dispersed throughout the Federal ones, Sallie Mae, and Truist. I currently would have to pay about $1,200 a month for all of them.
The range of interest rates is from 7% to 11%.
I earn about $4400 USD a month and have a credit score of 730.
Is it better to refinance now or later? I wanted to pay off a couple of my small debts, ranging from $1,500 to $3,500, before I moved, but I’m not sure if that would be beneficial.
Although my overall goal is to reduce my interest, a little monthly payment reduction would also be very appreciated.
Your student loans have exorbitant interest rates. Refinancing may result in a cheaper interest rate and the consolidation of multiple payments. However, refinancing federal loans eliminates perks such as income-based repayment and loan forgiveness. You may wish to pay off your smaller loans first, but refinancing could reduce your monthly payment faster. Check pre-qualified rates to determine whether refinancing will save you money. Weigh the benefits and drawbacks to determine whether this is the best option for you.
I would pay off any little loans you have that you can pay off right away. As a result of your reduced overall debt and proof that you are making payments, you may have a better chance of refinancing the remaining loans. After that, I would compare fixed interest rates to see which one is the lowest. You might also think about consolidating.