In 10 years, you would save $39,480 in interest payments ($329 per month x 10 years x 12 months per year). That said, you’ll see your monthly payment decreasing from $1079 per month to $750 per month. This is an extreme example to make a point. Get a rate from a student loan refinancer such as Juno and plug that rate in the calculator. Add your current debts to the calculator. So, to calculate how much you will save, I would suggest to do the following.ġ. That said, I didn’t like that the maximum was only 6 loans. I liked Smart Asset’s calculator the most thus far as you can enter multiple loans. I am working on my own, simple student loan amortization calculator as many options are inundated with ads. As someone who is constantly trying to figure out ways to eliminate debt faster and cheaper, I was excited to partner with them. Essentially Juno uses leverage to get you a better interest rate. What is it? It’s called Juno (formerly called LeverEdge (it took me a while to see that it’s a play on leverage)). Voila.īy negotiating with other individuals with student loans, you may be able to secure a better interest rate or cash back, saving you hundreds to thousands vs SOFI or other student loan consolidators. An entity takes those student loans to a bank and negotiates a better interest rate directly. You group your student loans with $100-$200 Million (Yes Million) in other student loans. So, when a head of business development reached out and told me that you could save additional interest rates through group negotiation, I was intrigued. I have never recommended a specific student loan consolidation company because I had always thought they were the same. But how much actual money will you save and which loan provider should you choose? Who should I choose to refinance my student loans? Our time is worth money, so consolidating from 10 payments into 1 payment is helpful. So, how much will you save from Dave Ramsey’s recommended student loan consolidation? He goes on to talk about how it’s important to understand how much you will save from consolidation.

He also mentions on his podcast titled, “When Is It Smart To Consolidate Student Loan Debt?” at the 0:45 mark that moving from a “variable rate to a fixed rate” can make sense. So, when does Dave Ramsey state that student loan consolidation is okay? Dave Ramsey approves of student loan consolidation in certain situations.ĭave Ramsey states on his podcast ( 1:55 mark), “the only reason you consolidate student loans is if you get and end up with a lower overall interest rate…”. While we know that Dave Ramsey does not approve of credit card and unsecured loan debt consolidation, he has a somewhat different approach regarding student loan consolidation. Why? Because Dave Ramsey shares his views openly both on his website and on his Podcast. Thankfully, we know a lot about what Dave Ramsey thinks about student loan consolidation. What Does Dave Ramsey Think About Student Loan Consolidation? In this example, you would save significant money. You are also lowering your total interest rate. You are consolidating higher-interest student loans into one student loan. See the simple student loan debt consolidation example below. your student loan interest rate going from 5.4% to 11.7%). 2) Getting a fixed rate instead of a variable interest rate to protect against future interest rate growth risk (i.e. The goal can also include: 1) Obtaining a lower interest rate to save money. The goal of student loan consolidation is to take multiple smaller student loans and consolidate them into one larger student loan and one monthly payment. So, I know a lot about student loan consolidation and what Dave Ramsey thinks about it. You also know that I write a lot about Dave Ramsey and the Dave Ramsey’s Baby Steps. After working at Google in Financial Operations, I was an executive at a loan debt consolidation firm. You may be looking at $100,000+ in student loan debt and wonder what Dave Ramsey thinks about student loan consolidation.

Dave ramsey refinance calculator