Home > Refinancing


January 20th, 2020 at 04:09 pm

I finally pulled the trigger on refinancing my government student loans. My application was approved and the scheduled date for everything to go through is in late January. My current servicer, Great Lakes, takes forever to process payments, so I don’t expect the process to be finished until early Feb. I have one final payment to Great Lakes in process right now for $1,944 (usual monthly amount), then in February I will start paying the new company. This will lower my interest rate from 6.55% to 3.2% fixed, which will obviously be a big help. The new loan is on a 5 year repayment term. There are no penalties for making extra payments to the new servicer, so I plan to continue to pay it down aggressively. I should really have done this sooner, but I was hesitant to lose the option of going to IBR if something happened like a job loss, etc when my total balance was more like $250,000.

I got soft quotes from several of the major companies before ultimately choosing CommonBond. The fixed interest rate quotes I received were all the same, but CommonBond’s customer support really impressed me, they had the best “what if you run into unexpected life emergencies” policies, and they had the best referral bonus, which is sent out 3 weeks after your loan is disbursed and you make your first payment to them. That said, friends have used Laurel Road and Sofi and also been happy with them. Amazing how customer service improves when you are the actual customer, rather than the Dept of Education being the customer and you being the annoyance they have to deal with to keep that sweet government contract money...

6 Responses to “Refinancing”

  1. creditcardfree Says:

    Oh, I am so happy for you!! A much, much better rate and in just five years (or less) you will be DONE!!

  2. disneysteve Says:

    That’s great. That lower rate will help a lot.

  3. LifeBalance Says:

    That is huge! It's going to be a big boost for you. And you have a deadline so you can dream about what you want your life to be AFTER 5 years.

  4. mumof2 Says:

    Awesome job...

  5. Lucky Robin Says:

    Wow, cutting your interest rate by just over half will make an insane amount of a difference.

  6. rob62521 Says:

    That is terrific! You were very smart to do this.

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