Splash Financial Student Loan Refinance Increases Its Lowest Variable Rates (March 2023)

Splash Financial, a student loan refinancing provider, has recently increased its lowest variable rate for student loan refinancing loans. With autopay, the rate has increased from 4.47% to 4.59% and without autopay, the rate has increased to 4.84%. This change may impact borrowers who are considering refinancing their student loans with Splash Financial.

For those who are unfamiliar with Splash Financial, it is a student loan refinancing provider that offers loans in 50 states and Washington D.C. The range of Annual Percentage Rates (APRs) offered by Splash Financial varies widely based on the borrower’s creditworthiness and the type of loan they choose. Splash Financial offers both fixed and variable rate loans, with fixed rates typically having higher APRs than variable rates.

For borrowers who choose a fixed-rate refinancing loan, Splash Financial offers APRs that range from 4.47% to 8.99%. The fixed rate with autopay is 4.47% while the rate without autopay is 4.72%.

For borrowers who choose a variable-rate refinancing loan, Splash Financial offers APRs that range from 4.59% to 8.99% with autopay. Without autopay, the range of APRs increases to 4.84% to 9.24%.

The increase in the lowest variable rate offered by Splash Financial may impact the loan repayment amount for borrowers who choose a variable rate loan. Borrowers who are considering refinancing their student loans with Splash Financial should weigh the pros and cons of fixed vs variable rate loans and determine which option is best for their financial situation. They should also consider the impact of autopay on the loan repayment amount.

To illustrate, with an interest rate of 4.47% and a loan term of 10 years, the monthly payment would be $208.94, and the total cost of the loan would be $25,072.80. With an interest rate of 4.84% and a loan term of 10 years, the monthly payment would be $219.86, and the total cost of the loan would be $26,384.32. As you can see, the increase in interest rate from 4.47% to 4.84% results in an increase in monthly payments of $10.92 and a total cost increase of $1,311.52 over the 10-year loan term. This is just an example and most borrowers will not qualify for the lowest rates offered by lenders.

It’s also important to note that Splash Financial does not charge an origination fee or a prepayment fee, which can be a significant savings for borrowers. Loan amounts start at $5,000 and can go up to $1,000,000, which gives borrowers a wide range of options when it comes to refinancing their student loans.