Refinancing my Student Loans to a Variable?

[MD2000]

Hi everyone,

I currently have 235K student loans refinanced with First Republic at a rate of 3.05% (fixed). I've been considering refinancing with one of the other companies that has <3% variable interest rates. I'm assuming that the variable 3% rate that I'll get with the other company will be changed to something <2% due to the current fed rates. Am I correct in assuming that? Is it worth going through the hassle of refinancing?

Thanks!

[jfoxcpacfp]

Ask them directly - they will have better info than our guesses.

[GastroMastro]

Hi everyone,

I currently have 235K student loans refinanced with First Republic at a rate of 3.05% (fixed). I've been considering refinancing with one of the other companies that has <3% variable interest rates. I'm assuming that the variable 3% rate that I'll get with the other company will be changed to something <2% due to the current fed rates. Am I correct in assuming that? Is it worth going through the hassle of refinancing?

Thanks!

The answer is yes, make sure you go through a WCI link on his main website to get a bonus of up to $550.

my current rate with earnest is 1.26 variable.

however, in the current climate I have tried looking for other variable rates because someone else in this forum was getting a rate of 0.86. However I think those are for existing variable loans, whose variable rate went down, not NEW loans.

sometimes the variable rates are higher than advertised when you get to the point of them telling you your specific rate, because demand is high right now. Nonetheless it’s worth a look. Don’t stop until you have looked at least 3 lenders

[ShredtheGnar]

Did a refi last year on my wife’s loan. Went with Earnest and a variable. Went from 4.875% fixed to 2.75% variable. It has been going down ever since. Currently it is at 0.96%. I don’t see rates going up within the next few years. If you can get a lower rate, go for it!

[dayman]

Cannot answer your specific question. But for another data point: I recently refinanced to a variable rate. Closed last month at 1.99%. This month, it is down to 1.56%.

[4thMolar]

If you plan on paying off your loans in 5 years or less I would go with variable. I refinanced with earnest in February I believe and the estimate I had was at 1.86%. Currently it is at 1.16 for 5 years with the autopay. You can’t go below 5 years with earnest, but they give you the option to make early and extra payments with no penalty.

[CFEonline]

Looking through the table on the wci student loan page best variable rates look like 1.5%, most 1.9%+. Where are these 0.8-1.2% being mentioned here coming from?

[bikesandbeer]

Had 242k that I refid with sofi about 12 months ago. 5 year variable. Started at 3.5ish%. This month the loans are at 42k and my rate is at 0.525% (that includes some sort of 0.25% discount). Guess I’ll invest and pay the minimum balance for a while. Was looking forward to posting in the “official payoff thread” but that’ll have to wait!

[endo4jc]

Looking through the table on the wci student loan page best variable rates look like 1.5%, most 1.9%+. Where are these 0.8-1.2% being mentioned here coming from?

I refinanced in February 2020 with Earnest to 5 year variable at 1.89%. After the Feds dropped rates, Earnest lowered mine to 1.16% in late March/early April 2020. In fact, I just checked this morning, and my current rate is 0.68%!

[Brains428]

I agree you should try to do the variable. I don't agree with the contention above stating that interest rates won't go up for the next few years. I'm not saying they will, but we just don't know. One always has to acknowledge interest rate risk when it comes to variable rate loans.

[4thMolar]

Similar to an above post...Feb 2020 refinanced to 5 year variable with earnest at 1.89, last month went down to 1.16, and just checked now at 0.68%.

[CFEonline]

Are these rates (0.5- - 0.8%) available to new refinancers, or somehow only if you had refinanced prior to the rate drops?

Not seeing these type of rates listed on the wci page, but perhaps need to inquire with the companies

[4thMolar]

Are these rates (0.5- - 0.8%) available to new refinancers, or somehow only if you had refinanced prior to the rate drops?

Not seeing these type of rates listed on the wci page, but perhaps need to inquire with the companies

Not sure If these rates differ from first time refinancers, but I Originally refinanced with Earnest 3 years ago and did a second refinance a few months ago.

[Flyover]

I am confused as well. I just did sofi and got 3.25 fixed and 3.5% variable (5 years). Commonbond was worse. I chatted with someone but I couldn't get to the bottom of if I refinance at 3.5% variable will it in fact drop below 1%? Seems strange.

[resident_1]

Interesting to see people getting less than 1.5% variable.
This week got #s for a refinance of 110k with lowest being Lauren road (1.99% for 5yrs).
Unfortunately Earnest asks you to give them your checking about login and password before providing a quote, which I refuse to do.