Are
you tired of paying a high interest rate on your student loan debt? Are you
looking for ways to refinance your student loans at a lower interest rate, but
don’t know where to turn? We have created the most complete list of lenders
currently willing to refinance student loan debt.
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You
should always shop around for the best rate. Don’t worry about the impact on
your credit score of applying to multiple lenders: so long as you complete all
of your applications within 14 days, it will only count as one inquiry on your
credit score
Can
I Get Approved?
Loan
approval rules vary by lender. However, all of the lenders will want:
Proof
that you can afford your payments. That means you have a job with income that
is sufficient to cover your student loans and all of your other expenses.
Proof
that you are a responsible borrower, with a demonstrated record of on-time
payments. For some lenders, that means that they use the traditional FICO,
requiring a good score. For other lenders, they may just have some basic rules,
like no missed payments, or a certain number of on-time payments required to
prove that you are responsible.
If
you are in financial difficulty and can’t afford your monthly payments, a
refinance is not the solution. Instead, you should look at options to avoid a
default on student loan debt.
This
is particularly important if you have Federal loans.
Don’t
refinance Federal loans unless you are very comfortable with your ability to
repay. Think hard about the chances you won’t be able to make payments for a
few months. Once you refinance, you may lose flexible Federal payment options
that can help you if you genuinely can’t afford the payments you have today.
Check the Federal loan repayment estimator to make sure you see all the Federal
options you have right now.
If
you can afford your monthly payment, but you have been a sloppy payer, then you
will likely need to demonstrate responsibility before applying for a refinance.
But,
if you can afford your current monthly payment and have been responsible with
those payments, then a refinance could be possible and help you pay the debt
off sooner.
Is
it worth it?
Like
any form of debt, your goal with a student loan should be to pay as low an
interest rate as possible. Other than a mortgage, you will likely never have a
debt as large as your student loan.
If
you are able to reduce the interest rate by re-financing, then you should
consider the transaction. However, make sure you include the following in any
decision:
Is
there an origination fee?
Many
lenders have no fee, which is great news. If there is an origination fee, you
need to make sure that it is worth paying. If you plan on paying off your loan
very quickly, then you may not want to pay a fee. But, if you are going to be
paying your loan for a long time, a fee may be worth paying.
Places
to Consider a Refinance
If
you go to other sites they may claim to compare several student loan offers in
one step. Just beware that they might only show you deals that pay them a
referral fee, so you could miss out on lenders ready to give you better terms.
Below is what we believe is the most comprehensive list of current Education loans refinancing
lenders.
You
should take the time to shop around. FICO says there is little to no impact on
your credit score for rate shopping as many providers as you’d like in a single
shopping period (which can be between 14-30 days, depending upon the version of
FICO). So set aside a day and apply to as many as you feel comfortable with to
get a sense of who is ready to give you the best terms.
Source:
https://educationloansinindia.wordpress.com/2016/07/22/refinance-student-loans-get-your-lowest-rate/
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