Refinance Sooner Rather Than Later

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How much?  Let’s take a look.

Simple case study




Original loan: $100,000

Interest rate: 7%

Minimum monthly payment: $706.78

Total interest paid: $112,033.35



Original loan: $100,000

Interest rate: 4.5%

Minimum monthly payment: $555.83

Total interest paid: $66,750.38




Very Easy Process

















  1. You mentioned a monthly payoff of around $700/month for the $100,000 loan. Is that charged like a commercial loan or, like the British system, is it taken as a percentage of the borrower’s income? That sounds like one of the more troubling aspects of student financing in the US if true – it’s not just the size of the debts but the way at which it is repayed. In the UK there is no way you can go broke from your student loan. Plug the numbers into this calculator: – to see what the equivalent student loan would cost you in the UK. Even with a huge £70,000 loan in the UK you can end up paying back virtually nothing if you never earn very much.

    • Student loans are paid back like regular old commercial loans. There is an income based option but you have to apply for that. That is a good option for some but most professionals with high debt will have a good income so they won’t qualify. Yes there are lots of troubling aspects to the US system! Thanks for the info.

  2. I’m actually going to refinance the rest of my student loans using SoFi, mainly just to test out the service! Student Loan refinancing exploded at just the right time. It’s going to help a lot of people out.

    • It really is going to help a lot of people. There will never be a shortage of companies willing to give out loans, but you might as well be smart about it and get a lower interest rate.

      • Definitely! Interest rate is such an important financial topic for people to be on top of. It’s also nice to know there are wealthy investors out there willing to take on a guaranteed payout at such a low interest rate ; )

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