Refinancing with Laurel Road
Refinancing rates from 1.89% APR. Checking your rates won’t affect your credit score.
If you’ve already refinanced your student loans once, you know that doing so can save you money and make it easier to repay your debt. It only makes sense to wonder how often you can refinance student loans to save even more.
So, can you refinance an already refinanced student loan? The short answer is yes, but you need to take a close look at the details before you refinance your student loan debt again. Let’s take a look at the following topics:
- How often can you refinance student loans?
- When it’s not bad to refinance student loans multiple times
- Be careful about extending the life of your loan
- Make sure extra costs don’t outweigh the benefits
- Check your rates to see if refinancing student loans again makes financial sense
When it comes to refinancing student loans, there’s no rule that says you can only refinance once. In fact, you can refinance student loans multiple times if it would save you money on interest.
If you’ve already gone through the process of refinancing student loans, you know it involves taking out a new loan with different terms, often from a new lender. It can also involve the consolidation of multiple debts into one.
Not only can refinancing simplify your monthly payments, but it can also save you money if you qualify for a lower interest rate. For example, let’s say you owed $30,000 on a few different loans with an average weighted interest rate of 7% and a term of 10 years. If you refinance to a 5% rate, you’ll save $3,615 on interest over the life of the loan.
So it stands to reason that refinancing for a second time could save you money if you qualify for an even lower interest rate the next time.
Even if you can refinance student loans as often as you like, there’s not much reason to do so unless you’ll get a lower interest rate. The rate you get is based on a few factors, including current market rates, your income and your credit score.
If market rates have dropped, it could make sense to shop around for student loan refinancing offers again. Lowering your rate by even a small amount could lead to major savings on your debt.
The other main reason to consider applying again is if you’ve improved your financial credentials since the first time you applied. Maybe your credit score is a lot higher or you’re making more money.
If you can submit a stronger application this time around, it could be worth checking your rates again with student loan refinancing lenders. If you can get an even lower rate by refinancing for a second time, you could save money on interest and pay your student loans off even faster.
Qualifying for a lower interest rate when you refinance an already refinanced student loan can save you money, but be careful when it comes time to choose new repayment terms.
Let’s say you chose a five-year repayment term when you refinanced student loans the first time around. You’ve already been paying for a year, so you only have four years left before you’re debt-free.
If you refinance for a second time and choose another five-year term, you’ll actually be adding a year to the life of your loans. You’ll be in debt for longer, so you’ll likely pay even more in interest overall, even if you qualify for a lower rate.
In this case, refinancing student loans for a second time wouldn’t help you save money or get out of debt faster. It could be useful if your goal is to lower your monthly payments by spreading them out over a longer period of time.
But it wouldn’t be a solution if your aim is to save money. So before refinancing private student loans for a second time, make sure you understand your new repayment terms and how they affect your debt.
Not only could extending your repayment term cost you more money, but you might also pay more in extra fees. Some lenders charge an origination fee for disbursing a new loan, so that’s an added cost when you refinance.
Of course, not all lenders charge fees for refinancing private student loans. SoFi, Laurel Road and Earnest, for instance, don’t charge any fees for disbursing the loan or paying it off ahead of schedule.
Again, it’s important to read over the details of an agreement before refinancing again to make sure the costs don’t outweigh the benefits.
When it comes to refinancing private student loans, there’s no rule that says you can only refinance once. If interest rates have dropped — or if you’ve improved your creditworthiness since the first time you applied — you could benefit from refinancing your student loans again.
And if qualifying for a lower rate is your goal, take steps to build your credit so you’ll be an even stronger candidate when you apply to refinance student loans.
Another way to boost your application is to apply with a creditworthy cosigner. Whatever you choose, it’s easy to check your rates with multiple lenders to see if you prequalify for lower rates.
As long as you’ve crunched the numbers with our student loan refinancing calculator — and carefully read over the details of repayment terms and fees — you could save money by refinancing your student loans again.
Kali Hawlk contributed to the reporting for this article.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.89% – 6.66%1||Undergrad & Graduate|
|1.89% – 5.90%2||Undergrad & Graduate|
|2.25% – 6.09%3||Undergrad & Graduate|
|1.99% – 5.64%4||Undergrad & Graduate|
|1.98% – 8.55%5||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|Check out the testimonials and our in-depth reviews! |
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2020.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of September 9, 2020. Information and rates are subject to change without notice.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 10/15/2020 student loan refinancing rates range from 1.98% APR to 8.55% Variable APR with AutoPay and 2.99% APR to 8.77% Fixed APR with AutoPay.