Why You Should Still Take Advantage of Student Loan Interest Rates Now (2024)

Lender and Bonus disclosure

THIS IS AN ADVERTIsem*nT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.

Earnest:$1,000 for $100K or more, $200 for $50K to $99.999.99. For Earnest, if you refinance $100,000 or more through this site, $500 of the $1,000 cash bonus is provided directly by Student Loan Planner. Rate range above includes optional 0.25% Auto Pay discount.

Earnest Bonus Offer Disclosure:

Terms and conditions apply. To qualify for this Earnest Bonus offer: 1) you must not currently be an Earnest client, or have received the bonus in the past, 2) you must submit a completed student loan refinancing application through the designated Student Loan Planner® link; 3) you must provide a valid email address and a valid checking account number during the application process; and 4) your loan must be fully disbursed.

You will receive a $1,000 bonus if you refinance $100,000 or more, or a $200 bonus if you refinance an amount from $50,000 to $99,999.99. For the $1,000 Welcome Bonus offer, $500 will be paid directly by Student Loan Planner® via Giftly. Earnest will automatically transmit $500 to your checking account after the final disbursem*nt. For the $200 Welcome Bonus offer, Earnest will automatically transmit the $200 bonus to your checking account after the final disbursem*nt. There is a limit of one bonus per borrower. This offer is not valid for current Earnest clients who refinance their existing Earnest loans, clients who have previously received a bonus, or with any other bonus offers received from Earnest via this or any other channel. Bonus cannot be issued to residents in KY, MA, or MI.

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Repaying your student loan

Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.

Student Loan Refinancing Loan Cost Examples

These examples provide estimates based on payments beginning immediately upon loan disbursem*nt. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

Student Loan Origination Loan Cost Examples

These examples provide estimates based on the Deferred Repayment option, meaning you make no payments while enrolled in school and during the separation period of 9 billing periods thereafter. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $157.12) and an 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $173.51) and an 13.03% APR would result in a total estimated payment amount of $22,827.79. Your actual repayment terms may vary.

Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.

One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.

Student Loan Planner® Bonus Disclosure:

Upon disbursem*nt of a qualifying loan, the borrower must notify Student Loan Planner® that a qualifying loan was refinanced through the site, as the lender does not share the names or contact information of borrowers. Borrowers must complete theRefinance Bonus Request formto claim a bonus offer. Student Loan Planner® will confirm loan eligibility and, upon confirmation of a qualifying refinance, will send via email a $500 e-gift card within 14 business days following the last day of the month in which the qualifying loan was confirmed eligible by Student Loan Planner®.If a borrower does not claim the Student Loan Planner® bonus within six months of the loan disbursem*nt, the borrower forfeits their right to claim said bonus.The bonus amount will depend on the total loan amount disbursed. This offer is not valid for borrowers who have previously received a bonus from Student Loan Planner®.

Why You Should Still Take Advantage of Student Loan Interest Rates Now (2024)

FAQs

Why is it important to understand interest rates regarding student loans and how it can impact your life? ›

Make sure you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay. Remember that interest rates and fees are generally lower for federal student loans than private student loans.

Read On ›

Why is it important to understand interest rates when taking out a loan? ›

When interest rates are high, it's more expensive to borrow money; when interest rates are low, it's less expensive to borrow money. Before you agree to a loan or sign up for a new credit card, it's important to make sure you completely understand how the interest rate will affect the total amount you owe.

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Why not get rid of interest on student loans? ›

While an interest cut is unlikely to reduce default, it is extremely costly. Why? An across-the-board interest subsidy benefits every borrower, including those who have high earnings and no difficulty repaying loans.

Is it true that private student loans typically have a higher interest rate than federal student loans? ›

The interest rate is fixed and is often lower than private loans—and much lower than some credit card interest rates. View the current interest rates on federal student loans. The interest rate is fixed and may be lower than private loans—and much lower than some credit card interest rates.

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How does interest rate have a positive impact? ›

In general, rising interest rates curb inflation while declining interest rates tend to speed inflation. When interest rates decline, consumers spend more as the cost of goods and services is cheaper. Increased consumer spending means an increase in demand and increases in demand increase prices.

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How do interest rates affect college students? ›

Key takeaways

Borrowers with variable-rate student loans from private lenders may see their interest rate change when the federal funds rate changes. College students who take out federal student loans after the Fed increases interest rates will experience higher borrowing costs.

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Why are interest rates so important? ›

One way that interest rates matter is they influence borrowing costs. If interest rates are lower, that will encourage more people to take out a mortgage and purchase a house, purchase an automobile, or take out a loan for home improvement, those kinds of things.

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How can I take advantage of high interest rates? ›

KEY TAKEAWAYS

While rates remain high, financial advisors suggest putting money in high-yield savings accounts and locking in the high rates for the longer term with CDs. Advisors also recommend investors reassess their stock portfolios, as some sectors do better in an environment of high interest rates.

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Why is it important to know the interest rate on your debt? ›

An interest rate tells you how high the cost of borrowing is, or high the rewards are for saving. So, if you're a borrower, the interest rate is the amount you are charged for borrowing money, shown as a percentage of the total amount of the loan.

Are student loan interest rates too high? ›

For undergraduates, interest rates on federal student loans are now 6.53% for the 2024-25 academic year — making the cost of borrowing for college the highest it's been in 16 years. But there are ways to keep your costs down.

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Why do student loans never go away? ›

Your interest charges will be added to the amount you owe, causing your loan to grow over time. This can occur if you are in a deferment for an unsubsidized loan or if you have an income-based repayment (IBR) plan and your payments are not large enough to cover the monthly accruing interest.

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When did they stop interest on student loans? ›

March 20, 2020: The office of Federal Student Aid began providing the following temporary relief on ED-owned federal student loans: suspension of loan payments, stopped collections on defaulted loans, and a 0% interest rate.

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Is it better to get a student loan or personal loan? ›

But personal loans don't offer the same benefits or protections as student loans—both federal and private. Personal loans require repayment right away, while most student loans offer a grace period while you're still in school.

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What are the disadvantages of federal student loans? ›

Cons

Not all students qualify for subsidized student loans. The information you provide on your FAFSA determines eligibility.
Student loans must be repaid, and debt adds up quickly. ...
There is a cap to how much you can borrow, so be sure you're seeking other types of financial aid as well.

Nov 30, 2017

Is it better to get a student loan from a bank? ›

A few types of lenders offer private student loans, including online lenders, traditional banks, and credit unions. Depending on your needs, getting a student loan from a bank might be the right choice for you — especially if you already have a bank account and can qualify for loyalty discounts on a student loan.

Why is it important to understand student loans? ›

Think about how the amount of your loans will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate, so it's important not to borrow more than you need for your school-related expenses.

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How can student loan debt impact your life? ›

Key Takeaways. Carrying student debt can affect your ability to buy a home if your debt-to-income ratio is too high. If you have too much student loan debt, you won't be able to save as much for retirement. Student loan debt can lower your credit score, especially if you fail to make on-time payments.

How do interest rates impact our financial lives? ›

If you are a borrower, rising interest rates will usually mean that you will pay more for borrowing money, and conversely, lower interest rates will usually mean you will pay less. How much of an impact will all depend on whether your borrowing is tied more to short-term rates or longer-term rates.

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