How to get your Student Loan Interest Rates Lowered (2024)

FAQs

How to get your Student Loan Interest Rates Lowered? ›

Refinance your existing student loans

If you have good to excellent credit (usually meaning a credit score of at least 670), you might be able to get a lower interest rate — and therefore save money — through refinancing. You can also opt to switch from a variable rate to a fixed rate (or vice versa) by refinancing.

Refinance your existing student loans

If you have good to excellent credit (usually meaning a credit score of at least 670), you might be able to get a lower interest rate — and therefore save money — through refinancing. You can also opt to switch from a variable rate to a fixed rate (or vice versa) by refinancing.

For private student loans, the lowest interest rates are reserved for borrowers with excellent credit, a stable income and a low debt-to-income ratio. If you don't meet these criteria, work to improve these areas before applying for a private student loan.

You can't change the type of interest rate (fixed or variable) that your private student loan after it's been finalized. But there are some things you can do to lower your total loan cost. Take advantage of discounts your lender offers, like Sallie Mae's discount for enrolling in auto debit.

Common debt negotiation strategies include asking for reduced interest rates, working with a lender to create a repayment plan and considering debt consolidation. Talking directly and honestly with your lender may be a helpful route to debt relief.

You can refinance both federal and private student loans to get a new private loan. You can't, however, refinance and end up with a federal student loan. Usually, the point of refinancing is to lower your interest rates so that monthly payments are more affordable.

If you end up with loans with a higher rate, you may be eligible for student loan refinancing later. Refinancing your debt once you're employed and have established good credit could allow you to qualify for a new loan with a lower rate, so it can help you save money.

Rates for federal student loans adjust annually, but if you already borrowed a loan, your rate won't change. However, if you take out a new loan every year, each one may have a different interest rate. This can get confusing, and it's one of the reasons borrowers may decide to consolidate their loans after graduation.

Key Points. Interest can make student loans more expensive, while inflation can make that debt harder to manage alongside other bills. Paying off some of your debt during your studies could ease the burden later on and save you money on interest.

Yes, you can negotiate a settlement with your lender or servicer. However, if you are submitting a compromise for federal student loan debt, the Department of Education might need to approve it.

Can student loans waive interest? ›

Payment Pause and 0% Interest. If your loans were eligible, we automatically paused your loan payments and set your interest rate to 0% from March 13, 2020, until Sept. 1, 2023. This payment pause is also known as an administrative forbearance.

If you have private student loans, you may be able to negotiate a lower interest rate with your lender. This is especially true if you're struggling to keep up with your monthly payments or if you plan to refinance and want to give your lender a chance to match.

If you signed up for a Sallie Mae loan when you entered college, you might have a high interest rate because you were a college student with no credit history and no full-time income. You may be eligible for a lower interest rate if you have a stable job and a good credit score.

You can reduce your interest rate by 0.25% by signing up for auto pay. This won't change your monthly payment amount, but you'll end up paying less in the long run if you're on a fixed repayment plan. If you need help applying for a repayment plan or have questions about your student loan, contact your loan servicer.

If you have student loan debt, whether you are in default or not, you may be able to work with the Department of Education to settle your debt for less than what you owe. This is called settlement and compromise.

Interest rates on federal student loans are always fixed. These rates are set on July 1 each year for loans disbursed from July 1 to June 30 of the following year.

A fixed rate will not change for the life of the loan. If your loan was disbursed before July 1, 2024, you likely have a different interest rate.

Lenders offer student loan discounts as incentives for prospective student loan borrowers. The two main types of student loan discounts are interest rate reductions and principal balance reductions.