Are you considering refinancing your student loans? Student debt can quickly become overwhelming—often totaling tens of thousands of dollars and, for some, exceeding $100,000.
On average, graduates from the class of 2015 carried just over $35,000 in student loan debt.
For those with professional degrees, the average balances are substantially higher: law school graduates can carry around $150,000 in debt, while medical school graduates may see averages near $200,000.
That’s a significant financial burden.
There are multiple strategies to manage and pay down student loans. One option is refinancing, which can be a powerful tool when used correctly. In this Credible review, I’ll explain how refinancing works, what benefits it can offer, and what trade-offs to consider.
Refinancing Student Loans: Pros and Cons
Refinancing student loans means taking out a new loan to pay off one or more existing student loans. The new loan typically replaces prior loans under a single lender and repayment schedule.
This approach can be especially worthwhile if your credit score or financial situation has improved since you first borrowed. Better credit often leads to better terms.
Refinancing can provide several advantages: lower interest rates, more favorable repayment terms, and the convenience of consolidating multiple loans into one monthly payment. Those improvements can help you pay off debt faster and potentially save thousands in interest over time.
Key benefits of refinancing include:
- One monthly payment to simplify your finances
- Lower monthly payments in many cases
- Lower interest rates and the potential for significant savings
Companies like Credible offer a refinancing marketplace that helps borrowers compare offers from multiple lenders. Many people who refinance save a substantial amount—sometimes thousands of dollars—especially if their existing loans carry high interest rates. In some promotions, Credible even provides a cash bonus for refinancing through its platform.
However, refinancing federal loans requires careful consideration. If you refinance federal loans into a private loan, you may lose federal benefits such as income-driven repayment plans and Public Service Loan Forgiveness (available to qualifying public servants, teachers, military members, and others). Giving up those federal protections can be costly, so evaluate whether you might need them before refinancing.
If you do not qualify for federal forgiveness or similar programs, refinancing to a lower interest rate can be an excellent way to reduce total interest paid and shorten your repayment timeline. Personally, had refinancing been available to me when I had student debt and no qualifying forgiveness options, it would have been very beneficial.
Consider all factors when deciding how to handle your student loans. The rest of this Credible review will walk through how Credible works and what to expect.
Credible Review
If you want to refinance or compare new student loan options, Credible is worth exploring. Credible is a comparison platform that shows personalized loan offers from multiple lenders, helping you pick the best option for your financial situation.
Think of Credible like a travel site for loans: just as you compare flights on a single site, Credible lets you search multiple lenders’ rates and terms in one place.
Credible can help you find lower interest rates, potentially reducing your overall loan cost by thousands of dollars. It’s free to use, and in some promotions Credible has offered bonuses to borrowers who refinance through their platform.
Credible also does not charge users for the service; instead, partner lenders compensate Credible. Importantly, Credible’s initial rate comparisons use a soft credit inquiry, which does not affect your credit score, and they take steps to protect your personal information.
Example rates you might encounter through lenders on the platform include options like Citizens Bank or Earnest with competitive fixed rates. Exact offers depend on your credit profile and the lenders’ criteria.
There are no service fees, origination fees, or prepayment penalties through many lenders available on Credible—so if you pay off your loan early, you often won’t be charged extra.
Credible has been recognized by several media outlets and provides a straightforward process for comparing offers. Here’s how Credible describes its service:
“Credible helps you find the best offer to refinance your student loans. By completing a brief one-page form and allowing a soft credit inquiry, we provide a dashboard of prequalified rates from multiple lenders to compare side-by-side based on total repayment amount, APR, and monthly payment.
This soft credit inquiry does not harm your credit score and allows us to match your profile with our partner lenders’ criteria.
If you see a prequalified rate you want, you can complete a more detailed form to be sent to the lender for consideration. From there, you’ll finalize the refinancing with the lender by verifying your information directly with them.
Our partner lenders accept both federal and private loans used for education, including Parent PLUS loans when you are the primary borrower or a co-signer. If you refinance federal loans, review the federal benefits that may not transfer to private lenders.”
To use Credible:
- Fill out a short one-page form (about 2 minutes) to see lender options.
- Compare offers and choose one that fits your needs (about 2 minutes).
- Provide loan details and submit a more complete application; finalized offers typically arrive within one business day after submission.
Things to Consider Before You Refinance
Before taking the next step, here are important points from this Credible review to keep in mind:
- If you qualify for federal deferment, income-driven repayment, Public Service Loan Forgiveness, or other federal benefits, think carefully before refinancing federal loans into a private loan—you may be giving up valuable protections.
- Be cautious with variable interest rates. While they may begin lower than fixed rates, variable rates can rise over time. If you have a variable rate now, moving to a fixed-rate loan could provide stability.
- Refinancing can extend your loan term to lower monthly payments, but a longer term may increase total interest paid over the life of the loan.
- If your credit has improved since you first borrowed, refinancing could qualify you for substantially better terms. Shop around to find the best offer for your situation.
Do you have student loans? What are your thoughts on refinancing? Any questions about this Credible review?
*Statistics referenced from MarketWatch and USNews reporting on the class of 2015 student debt averages.