Student loan refinancing is when a private lender pays off your existing loan(s) and gives you a new loan with new terms.

For example, let’s say you have a student loan with a $10,000 balance at an 8% interest rate. If you refinance this loan, you could secure a new loan of a $10,000 balance with, say, a 5% interest rate. Your new lender will pay off the remaining balance to your old lender. Then, you will begin making payments on your new loan to your new lender. By refinancing, you are aiming to secure better terms or lower interest rate, ultimately saving you money over the life of the loan.

To refinance your student loan(s), simply complete the two-minute Sparrow application. By refinancing through Sparrow, you may qualify for a lower interest rate or lower monthly payment on your student loans. Best of all, it costs nothing to refinance your student loans and you can do it as many times as you would like.