I have about 35k in student loans at around 13% and was thinking about refinancing. Does it really make sense? I know sofi and stilt offer loans for around 6% to 9% interest.
No
How did you get student loans at 13% who charges that much for a student loan? Yeah, if you don’t have 35k laying around to pay it off, what is the downside of refinancing?
Reset the clock, elongate your loan payoff and refactor numbers outside of your favor to make you think your monthly amount is lower and you’re getting a better deal. This is the oldest trick in the book mate.
Doesn't have to be longer period.
Yes, it does make sense since you'd be paying less in interest. But to get the best rates from SoFi and others, you typically need to have good credit. NerdWallet has a simple student loan refinance calculator.
If you have a high credit score and earnings then refinancing can be a good option. I refinanced through Earnest and reduced my rates to 5.5% You choose variable or locked in rates. Do your research on Nerdwallet and Studentloanhero.
Mine were only 2%. You messed up somewhere.
Pay it off. 13% is a lot
OP is from India where high interest rates are common
For you it absolutely makes sense to look for refinancing, if your credit score have gotten better you can get 6% or less. Even getting below 10% will save you a lot of money. Check Sofi, Earnest and apply to see what rate you get.
Do you like paying more money? What do you mean, “does it make sense”? Does paying $10 for a coffee at Starbucks make sense?
13% is crazy, pay that shit off right away. Mine were 5% for undergrad and friends who did grad schools got 4%.