Q: Student loan repayment program - Seeking ways to reduce the interest.
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- California
- (916) 704-3009
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- Answered
A:
If you're looking to reduce the interest on your student loans, there are several steps you can take. One option is to explore refinancing, which may allow you to secure a lower interest rate. This is especially beneficial if your credit score has improved since you initially took out the loan. Keep in mind that refinancing federal loans may cause you to lose benefits like income-driven repayment plans and loan forgiveness, so weigh the pros and cons carefully.
Another strategy is to sign up for autopay. Many lenders offer a small interest rate reduction, typically around 0.25%, when you set up automatic payments. This not only helps reduce your rate but also ensures you never miss a payment, avoiding late fees and additional interest.
You can also consider paying more than the minimum each month. Even an extra payment here and there can help reduce your overall interest over time by lowering the principal faster. By focusing on strategies that align with your financial situation, you can better manage your student loan repayment and save money on interest in the long run.
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