A student loan refinance calculator can be used for comparing the information on student loan debt and for seeing how it can lower monthly loan payments. Calculate savings and payments come as estimates. Making use of the student loan refinance calculator does not mean that you are getting an offer to have a loan. It also does not solicit any kind of loan offer. Any sort of savings and payments are dependent on the original amounts for which the borrower is approved.
Using the Calculator for Refinancing Student Loan
There is some specific information that you need to provide in the student loan refinance calculator. In case you do not have any idea about the present loan details, you always have the option of taking online help from the loan service providers. The information that you need to provide in the calculator includes:
Original Loan Amount
You need to put in the original loan amount that you borrowed for loans that you wish to refinance. You might have a complete mix of private and federal loans or several loans disbursed throughout different semesters. In case you are looking to refinance all the loans, you need to feed in the total loan amount that you have borrowed. However, if you want to refinance only some loans, or just your private loans, it is essential for you to enter only the amount of those loans.
Original Loan Term
Feed in the original loan term for the loans that you are looking to refinance. Here, it is important to note that the deferral student loans come with a repayment term of ten years unless you go for an income-driven or extended repayment plan or loan consolidation. The private student loans ranging between five to twenty years.
Current Annual Rate of Interest
If you are looking to refinance several loans that come with different rates of interest, you will get the best and the most accurate results by entering the loans separately with the associated rates. In order to get a very rough estimate, enter the average rate of interest of the loans that you want to refinance.
Amount Left on the Loan
You also need to enter the total amount you owe on the loans that you want to refinance. This will include accrued interest. The number can be higher or lower in comparison to the amount that you borrowed originally based on the amount of interest that has actually accrued and the amount that you have already paid.
The Term of the New Loan
Based on the refinance lender that you choose, you will have different term lengths that you can choose from. Use the calculator and determine how the loan term length has an impact on your repayment amount. For short term lengths, the monthly payments are high and the rate of interest is low.
The calculator can also be of good help in saving the total loan interest by bringing about a reduction in the rate of interest on student loan. This way, if you minimize your interest, you will make huge savings in the near future.