Are you a student wondering what type of student loan refinance rates you can be eligible for? No problem. Read the article below and you’ll learn what you need. Also, you’ll see how merchant services providers like First American Merchant can best help you with the necessary funding.
Fixed & Variable Rates: First American Merchant
Is there a difference between fixed and variable interest rates? Well, the former doesn’t change for the duration of the loan term, thus enabling students to predict their monthly student loan payments. The latter fluctuates based on the market conditions, so students can’t predict monthly payments as they could grow or go down due to the adjustment in the interest rate.
As you may know, interest and payments on federal student loans are currently suspended. The period ends on Jan. 31, 2022. Why? This is done for the purpose of providing relief from the economic impacts of COVID-19.
If you’re looking for reliable and affordable access to funding, why not try applying to an expert merchant services provider like First American Merchant? FAM is an award-winning high risk merchant funding provider that isn’t focused on businesses’ credit scores. Instead, FAM pays attention to the amount of cash flow in a business to decide on the eligibility of borrowers.
Current Student Loan Refinancing Rates
If you’re considering a variable-rate student loan, be aware that it’s a nice option for those who are eligible for the cheapest rates. If you qualify for student loan refinancing, you may be offered an interest rate based on your FICO score, what type of loan you need (fixed or variable rate), as well as the loan repayment term.
Be aware that there are many refinance lenders that recalculate rates on a monthly basis for borrowers with variable-rate loans. However, they, as a rule, put a limit on how much the rate can increase. So, e.g., they can determine a limit of 18%.
Fixed and Variable Student Loan Refinancing Rates
The type of interest rate you’re offered for a student loan and the rate itself are equally important. Be aware that variable interest rates aren’t fixed and they can change based on the changes in the marketplace. This means you should be prepared for a rise or fall in this type of rates.
Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their (First American Merchant) solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.