Content provided by Credible. Credible is solely responsible for this content and the services it provides. New York Post receives a fee if you click a link below and close a loan through Credible.Our goal is to give you the tools and confidence you need to improve your finances. We do that by creating expert-curated and deeply-researched articles that adhere to our. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own.
Fixed interest rates offer consistency for a borrower’s budget. That’s because a fixed rate doesn’t change over time, meaning that your monthly payment amount shouldn’t either. Of course, you can lessen the risk that your variable rate will increase if you select a shorter repayment period — such as five years. A shorter term means less time for interest to accumulate on your debt. You just need to be sure that you can afford the higher monthly dues on a five-year term versus a 10- or 15-year term.Borrowers with good credit may find a lower rate by refinancing, even if they have federal loans.
There’s little reason to refinance federal student loans while the pause is in effect. But if you have private student loans and can qualify for a lower rate, it may make sense to refinance your education debt.