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3 Times You Should Refinance Parent PLUS loans

Did you take out a Parent PLUS loan to help your child through college? If so, you'd probably love to find a way to make those payments more manageable.

Refinancing may be good option to allow to put your money toward your own financial priorities—finally. 

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Not sure if refinancing your Parent PLUS loan is right for you? Let's take a look at three situations when it's a good idea. 

1. Your interest rate is high

When your interest rate is high, paying off your debt can seem like a never-ending cycle. Because interest accrues daily on your loan balance, your monthly payments may not be making much of a dent on your loan principal. 
 
In this case, refinancing can be helpful. The better your credit history, the lower your rate. Even a 1% reduction in your interest rate could save you thousands of dollars over the life of the loan.
 

2. You want to lower your monthly payments

If your monthly payment is too high compared to your income and you'd like to lower your monthly student loan financial commitment, you should consider refinancing. That's because most companies allow you to choose a repayment timeline that works for your individual needs. Stretching your repayment term means you'll have more time to pay and a lower monthly payment. 

This will free up some cash in your monthly budget that you can put toward groceries, other bills, or a trip you're working toward, instead of your child's loans. One thing to consider when choosing a longer term for repayment is that you'll ultimately end up paying more in the long-run than with a shorter repayment term. However, if it's a smaller monthly payment you're after, this is a great option.

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3. You want to pay off the loan faster

If you are itching to buy your dream vacation home or you're coming closer to retirement, chances are you're looking to pay off your debt — and fast. Refinancing lets you do exactly that. People who refinance their student loans often save over $16,000 over the life of the loan. 

With a lower interest rate, more of your monthly payment will go toward your loan principal. Plus, many lenders will also allow you to opt for a shorter repayment term. In addition to refinancing, you can always pay more than your minimum payment due to speed up the process.

If you're interested in seeing just how much you can save through refinancing, check out our Student Loan Refinancing Calculator for an estimate. 

Additional Nitro Recommended Student Loan Lenders

Lender Rates (APR) Loan Types Terms Eligible Degrees Eligible Loans  

Sallie Mae

3.37% - 13.72%1 Variable & Fixed
10 - 15 years

Undergrad Students Learn More

View Disclosure

Ascent

2.52% - 14.75%1 Variable & Fixed
5 - 15 years

4

Undergrad & Graduate Students Learn More

View Disclosure

Earnest

2.55% - 12.78%1 Variable & Fixed
5 - 15 years

3

Undergrad & Graduate Student & Parent Learn More

View Disclosure

SoFi

2.99% - 13.60%1 Variable & Fixed
5 - 15 years

Undergrad & Graduate Student & Parent Learn More

View Disclosure

FundingU

6.99% - 12.99%1 Variable & Fixed
10 years

Undergraduate No-Cosigner Student Loan Learn More

View Disclosure

MPowerFinancing

7.52% - 14.98%1 Fixed
10 year only

Undergrad & Graduate Student Learn More

View Disclosure

Rates (APR) 3.37% - 13.72%1
Loan Types Variable & Fixed
Terms 10 - 15 years

Eligible Degrees Undergrad
Eligible Degrees Students
Rates (APR) 2.52% - 14.75%1
Loan Types Variable & Fixed
Terms 5 - 15 years

4

Eligible Degrees Undergrad & Graduate
Eligible Degrees Students
Rates (APR) 2.55% - 12.78%1
Loan Types Variable & Fixed
Terms 5 - 15 years

3

Eligible Degrees Undergrad & Graduate
Eligible Degrees Student & Parent
Rates (APR) 2.99% - 13.60%1
Loan Types Variable & Fixed
Terms 5 - 15 years

Eligible Degrees Undergrad & Graduate
Eligible Degrees Student & Parent
Rates (APR) 6.99% - 12.99%1
Loan Types Variable & Fixed
Terms 10 years

Eligible Degrees Undergraduate
Eligible Degrees No-Cosigner Student Loan
Rates (APR) 7.52% - 14.98%1
Loan Types Fixed
Terms 10 year only

Eligible Degrees Undergrad & Graduate
Eligible Degrees Student

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