Most people who are looking for the best student loan refinance and consolidation solution will choose the lender offering the best interest rate on their preferred repayment term.

For example, let’s say you have a student loan with a $50,000 balance and an 8% interest rate. When you refinance, you’ll want to secure a loan with an interest rate below 8%. If, for example, you had 10 years left in your repayment term on this loan, but you need more time to pay it off, you’d want to secure a new loan with a longer repayment term when you refinance. In this example, a refinance loan with a 5% interest rate and a 12-year repayment term would be a great fit for you because it satisfies both your interest rate and repayment term preferences.

Similarly, if you want to get out of debt faster and reduce your total interest expense, you may consider refinancing to lower your interest rate and reduce your repayment plan. In the example above, you may try to lock in a 5% interest rate and a 5-year repayment term to cut the amount of time you're in debt in half.

By finding an offer with a lower interest rate, more of your payment goes toward the loan principal rather than interest, allowing you to save a significant amount of money.

With that said, there are other things to keep in mind. Besides the different eligibility criteria and loan limits each lender has, many have unique benefits. Some of these benefits may be more valuable to you than simply choosing the best interest rate.

Sparrow’s rate comparison tool is an easy way to compare lenders and find the best student loan refinance option. You will be presented with real, prequalified rates from a selection of quality, vetted lenders, all based on your specific borrower profile. This lets you make an informed decision by comparing rates, terms, and monthly payments all in one easy view. Checking rates on Sparrow is completely free and has no impact on your credit score.