When student loan borrowers are looking to refinance student loans, they typically come across two options: a fixed-rate student loan and a variable-rate student loan. Let’s break down what the differences are between variable-rate student loans and fixed-rate student loans, and when each might make sense for a borrower. What is Fixed-Rate Student Loan Refinancing? A fixed-rate student loan is one that maintains the same interest rate on the loan for the entire life of the loan. For example, we are going to assume a 10-year repayment plan at 7% interest on a $40,000 student loan. We’re also …
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