Ok, I’m not a financial advisor but let me share what just happened. I currently have $46,581.24 of student loans with a 20 year fixed rate of 5.39%. Today I was looking to refinance my student loans since the rates are closer to 3.5ish% and up. I called my student loan company, Citizen’s Bank (shout out because Carlos was totally freaking awesome), and asked if they could review my account for a lower interest rate.
Prior to getting onto that call I knew that my credit score was high so I would qualify for a lower rate elsewhere but I have been happy with my current company (total shocker I know and no I’m not making any money by saying this) so I figured I would give it a shot.
I am currently paying $340.96 each month for 20 years. I have a little less than 18 years to go. Without paying extra money each month I would have paid $31,715 of interest.
Future payments will be $351.84 each month for 15 years. And if I do not make any extra payments I will pay $16,749 in interest.
What did I save? Three years of paying off student loans plus $14,966 in interest! (If you can do a cartwheel, please do one for me!)
How much did it cost me? About 30 minutes on the phone because I kept cracking jokes plus about 5 minutes to upload a recent pay stub and current student loan invoice. Once Citizen’s Bank finalizes my loan, I will need to go into my account sign a couple papers for about 10 minutes of effort. So basically in less than an hour I saved close to $15,000!!! Seems like $15,000 is a magic number for me!
Next up… refinancing my car. Check back for more updates!