How to Refinance Your Student Loans and Save Money
If you’re feeling weighed down by your student loan payments, refinancing could be the solution to help you save money. Whether you want to lower your monthly payments or pay off your loans faster, refinancing gives you the power to do both. At Northwoods Credit Union, we’re not just helping people in Cloquet, Floodwood, and Moose Lake, Minnesota, get personalized student loan refinance rates—quickly and easily, we can help anyone, as our marketplace is for anyone, not just Northwoods CU members.
What Is Student Loan Refinancing?
Refinancing your student loans means replacing your current loans with a new one, typically with a lower interest rate. This can reduce your monthly payments, or shorten the loan term so you can pay it off faster. You’ll have one loan to manage, making it simpler to keep track of payments.
We offer a fast and hassle-free refinancing process with our unique student loan marketplace. You fill out one form in under three minutes, and you’ll get 20+ personalized rate offers. It’s all available right at your fingertips—and you don’t need to be a member to apply.
Explore Your Personalized RatesBenefits of Refinancing
Refinancing student loans can benefit you in many ways:
- Lower Interest Rates: By locking in a lower rate, you’ll save money over time.
- Lower Monthly Payments: Refinance to a longer loan term to decrease your monthly payments.
- Pay Off Loans Faster: With a lower rate, you can save money on interest and pay off your debt sooner.
- Consolidation: Combine multiple loans into one easy payment.
Steps to Refinance Your Student Loan
-
- Check Your Credit: Your credit score impacts the interest rate you can qualify for. Before applying, check your credit report for any errors.
- Compare Rates: Northwoods Credit Union lets you see 20+ rates with just one form. It only takes three minutes to fill out.
- Choose Your Loan: Pick the best rate and terms that fit your financial goals.
- Apply for the Loan: After choosing a rate, complete the full application. This will require additional documents like income verification.
- Start Saving: Once approved, your new loan will pay off your old loans, and you’ll start making payments on your refinanced loan—at a better rate.
Why Choose Northwoods Credit Union?
We’re your local credit union, with branches right here in Minnesota, serving Cloquet, Floodwood, and Moose Lake areas. You can refinance without needing to become a member, and our process is designed to save you time and money. With us, you’ll get the personalized service and local expertise you deserve.
Frequently Asked Questions
Q: Can I refinance both federal and private student loans?
A: Yes, you can refinance both federal and private loans into a new private loan. However, refinancing federal loans may mean losing certain benefits like income-driven repayment plans or loan forgiveness. Make sure to know your situation.
Q: How much can I save by refinancing?
A: The amount you can save depends on your current interest rate and the new rate you qualify for. Refinancing can lower your interest rate, saving you potentially thousands over the life of the loan.
Q: What credit score do I need to refinance?
A: Typically, lenders look for a credit score of 650 or higher. However, it’s still possible to qualify with a lower score, especially if you apply with a cosigner.
Q: Will refinancing hurt my credit?
A: Initially, a lender will run a hard inquiry on your credit, which may lower your score slightly. Over time, consistent, on-time payments on your refinanced loan can improve your credit.
Q: Can I refinance more than once?
A: Yes! If rates drop or your credit score improves, you can refinance again to get even better terms.
Ready to Start Saving Money On Your Student Loans?
If you’re ready to take control of your student loans and start saving, Northwoods Credit Union is here to help. Check out our marketplace and apply online today to see your personalized rates in just minutes.