Your Private Student Loan: Refinance with a Better Rate

If you want to go through a private student loan refinance you have many options to choose from. Sometimes, in order to get a private student loan, you agreed to an interest rate that was not ideal. After a period of time of paying this higher interest rate, you may be ready to move on to another option. Refinancing private student loans to get a lower interest rate is very common and you should definitely consider your options. Here are a few ways that you could get a better rate by refinancing your private student loan.

Consider a Credit Union

Many people completely overlook credit unions when they need to take out a loan. They are still under the radar for many people and they do not even consider them as an option. Credit unions are non-profit organizations and under that designation do not have to pay any taxes to the government. Since they do not have to pay any form of taxes, they can pass these savings on to their borrowers. When you consider a credit union for a student loan, you will most likely be able to secure a lower interest rate than with other options. They will also have lower fees associated with the loan and an easier application process. Many of them will even give you more of a discount on the loan if you open a checking account with them and have the monthly payment drafted out of it. 

Home Equity Loan

Another option that you could consider is a home equity loan. With a home equity loan, you will be able to get a decent interest rate in most cases. You will be able to get a long term to pay off the loan as well. The tax advantages that you receive from this type of loan will be nice as well. You can deduct all of the interest that you pay for the home equity loan as well as any points that you pay during closing costs. This could potentially get you a lower rate of interest rate and save you money on your taxes as well. 

Peer-to-Peer Loan

Another option that you should consider is a peer-to-peer loan. Many people are not familiar with what a peer-to-peer loan is or how they work. With a peer-to-peer loan, you will borrow money from another individual that has capital. 

You can setup this type of loan through any number of peer-to-peer lending sites out there. These sites allow people that need money to post loan proposals and lenders can see them. Many of the sites actually allow lenders to bid on the loans by coming up with the lowest interest rate. When you are an attractive borrower, you could be able to net a very good interest rate through a bidding war of lenders. This is a very convenient way to finance your student loan needs and could potentially save you money. 

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