Student Refinancing FAQs
Refinancing allows borrowers to combine there several loans into a single loan by taking out a new loan usually at a cheaper rate. The student loans you get while at school is based on the federal loan option, they not based on your credit profile. Once you start to work and build a good credit, you can significantly lower your rate and get out of debt sooner.
Moreover, interest rates have been falling for several years and so more and more borrowers have been able to save thousands of dollars by refinancing their loans or lower their monthly payments to a manageable level. There is also the added benefit of combining your several student loans in to a single loan and having a single bill. There is also a Federal loan consolidation option but it does not have the option of lowering your interest rate. Read More about benefits of refinancing.
You may refinance from $5,000 to $500,000 of your current federal, private, and parent plus loans. The loan limit depends on degree level for which the student loan was obtained.
Oh yes. We encourage you to take good deal when you come across one. We love smart borrowers.
Federal loans and Private loans that you took out for your associate, bachelors, masters, or professional courses are eligible for refinancing. We do not require you to have completed your program of study to be eligible for refinancing.
Parents who took out a Parent PLUS or private loan for their dependents are also eligible for refinancing. Parents, check out our article on benefits of refinancing Parent PLUS loans.
Yes, yes, and yes. Parents, check out our article on benefits of refinancing Parent PLUS loans.
Of course, that is one of the benefits of refinancing beyond the advantage of lowering your rate, getting out of debt sooner, and lowering your monthly payment.
Some of the lenders on our marketplace offer refinancing irrespective of whether you completed the program for which you obtained the student loan. If you fall in this category, we will automatically match you with lenders in our marketplace who may approve you.
Yes, these options are available and needs to be discussed directly with your lender when a situation that calls deferment or forbearance arises.
No, none of our lender partners have any pre-payment penalty.
None of our lenders charge any origination or application fee.
Both. However, there are a few key benefits associated with federal loans (and, to a lesser extent, private loans) which will go away after the refinance or consolidate transaction occurs. Visit studentaid.ed.gov/repay-loans/consolidation to learn about the available federal repayment options.