Author Topic: cutting student loan interest rates: private lender refinancing, credit cards?  (Read 2008 times)


  • Bristles
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  • Posts: 389

I have ~15K at an unsubsidized Stafford loan at 7.8%, it's on autopay which brings the interest rate down .25%. I have good credit. I think it would take me 15 months to pay off with a fair amount of frugal flexing. That's roughly $1200 to 1400 in interest payments included over the 15 months.

Does anyone know of any low cost loans that would be better? Credit cards with zero percent offers and zero transfer balances? I heard some private lenders were offering 4% above prime, but that's a floating rate so I could get hosed if prime jumps back up (I doubt it will, but who knows). The risk-reward ration on that route seems high, particularly if there are any closing costs or origination fees. Credit unions seem to want 12% on unsecured debt.

Any ideas would be appreciated.