Student Loan
How to Choose the Right Student Loan Refinance Lender?
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Refinancing your student loan can lead to significant savings if you are doing it right. A private bank or private lender will pay off the student loan you choose to refinance.
You will then get a new interest rate with a new loan. In this article, we have listed the best student loan refinance lenders for you to make better financial decisions for your education loan.
You will get all the information about these lenders in this article. Also, note that none of these lenders charge prepayment fees, but some may have late payment charges.
Contents
- 1 Best Place to Consolidate Your Student Loans
- 2 Conclusion
- 3 FAQs for Best Student Loan Refinance Lenders
- 3.1 Is refinancing student loans a good idea?
- 3.2 What are the advantages of involving a cosigner in student loan refinancing?
- 3.3 What should I consider before refinancing my student loans?
- 3.4 How exactly do student loan payments function?
- 3.5 How can I figure out the ideal student loan plan for myself?
Best Place to Consolidate Your Student Loans
Citizens Student Loan Refinancing
It is a great choice for people who want to involve a cosigner in their student loan. They will give you the option to apply for the release of a cosigner when you have completed 36 consecutive on-time payments.
Another advantage is the opportunity to receive a rate discount of up to 0.50% when you start autopay, which is ultimately higher than the usual discount other lenders offer.
| Feature | Details |
|---|---|
| Cost | No origination fees to refinance |
| Eligible Loans | Graduate and undergraduate loans, Federal, private, Parent PLUS loans, medical and dental residency loans |
| Loan Types | Variable and fixed |
| Variable Rates (APR) | 7.07% – 12.41% APR |
| Fixed Rates (APR) | 6.80% – 10.99% APR |
| Loan Terms | 5, 7, 10, 15, 20 years |
| Loan Amounts | Minimum of $10,000, up to $300,000 (bachelor’s degree or below) or $500,000 (graduate degree) |
| Minimum Credit Score | Not disclosed |
| Minimum Income | $24,000 |
| Allow for a Co-signer | Yes |
Education Loan Finance Student Loan Refinancing
This is a good choice for people who want to consolidate private and parent-plus loans. Parents can have the option to refinance and transfer the student loan into their child’s name.
Education Loan Finance Student Loan provides the support of student loan advisors to assist borrowers in navigating the refinancing process.
| Feature | Details |
|---|---|
| Cost | No origination fees to refinance |
| Eligible loans | Graduate, and undergraduate loans, Federal, private, Parent PLUS loans |
| Loan types | Variable and fixed |
| Variable rates (APR) | From 5.28% |
| Fixed rates (APR) | From 5.48% |
| Loan terms | 5 to 20 years: student loan refinancing; 5, 7, or 10 years : parent loan refinancing |
| Loan amounts | From $10,000 |
| Minimum credit score | N/A |
| Minimum income | N/A |
| Allow for a co-signer | Yes |
Rhode Island Student Loan Authority
RISLA is a good choice for students and parents who are looking for affordable student loans and loan servicing options. RISLA has a long history of providing excellent customer service.
They are committed to helping students and their families achieve their higher educational goals.
| Feature | Details |
|---|---|
| Loan Terms | 10 or 15 years |
| Loan Amounts | $1,500 to $45,000 per year ($150,000 aggregate per borrower) |
| Eligibility | Minimum income of $40,000 per year and a minimum credit score of 680. Most undergraduates need a co-signer. |
| Forbearance Options | Available for up to 24 months |
| Co-signer Release | Available after 24 months of payments |
Earnest Student Loan Refinancing
Earnest student loan refinancing is a great choice for people with average credit scores. They accept applicants with a minimum credit score of 650.
A special benefit you will get with Earnest is that you will get the flexibility to skip one payment every year without facing any penalties.
| Feature | Details |
|---|---|
| Cost | No origination fees to refinance |
| Eligible loans | Federal, private, graduate, and undergraduate loans |
| Loan types | Variable and fixed |
| Variable rates (APR) | 5.72% – 9.74% (rates include a 0.25% autopay discount) |
| Fixed rates (APR) | 4.96% – 9.79% (rates include a 0.25% autopay discount) |
| Loan terms | Flexible terms anywhere between 5-20 years |
| Loan amounts | Minimum of $5,000, up to $500,000 |
| Minimum credit score | 650 |
| Minimum income | No income requirement |
| Allow for a co-signer | No |
SoFi Student Loan Refinancing
Sofi is a popular lender in student loan refinancing. They offer various benefits to its users. If you join SoFi, you can enjoy benefits like referral bonuses, discounts on other loans from Sofi, special travel offers, tailored career advice, financial guidance from experts, and an unemployment protection program.
| Feature | Details |
|---|---|
| Cost | No origination fees to refinance |
| Eligible loans | Graduate and undergraduate loans, Federal, private, Parent PLUS loans, medical and dental residency loans |
| Loan types | Variable and fixed |
| Variable rates (APR) | 6.24% – 9.99% (rates include a 0.25% autopay discount) |
| Fixed rates (APR) | 5.24% – 9.99% (rates include a 0.25% autopay discount) |
| Loan terms | 5, 7, 10, 15, 20 years |
| Loan amounts | From $5,000; over $10,000 for medical or dental residency loans |
| Minimum credit score | N/A |
| Minimum income | N/A |
| Allow for a co-signer | Yes |
Conclusion
Refinancing student loans is the best choice if you have a stable income and a strong credit score. By this, you can save money in the long run. The main task for you is you choose the right loan term for your financial needs. You also need to research the lender options available out there. After choosing and applying for refinancing, don’t forget to repay your loan amount on time so that you won’t get any penalties.
FAQs for Best Student Loan Refinance Lenders
Is refinancing student loans a good idea?
Refinancing student loans can be a smart move for individuals with stable incomes and good credit scores. It has the potential to lead to significant savings in the long term. It’s crucial to carefully consider factors such as interest rates, repayment terms, and the reputation of the lender before deciding to refinance.
What are the advantages of involving a cosigner in student loan refinancing?
Involving a cosigner in student loan refinancing, as offered by lenders like Citizens, can have several benefits. It may increase the likelihood of approval, result in a lower interest rate, and provide the option to apply for a cosigner release after meeting specific criteria, such as making consecutive on-time payments.
What should I consider before refinancing my student loans?
Consider factors such as interest rates, loan terms, eligibility criteria, and additional benefits offered by the lender. It’s important to assess your financial situation, compare rates from different lenders, and understand the terms and conditions, including any potential penalties or fees.
How exactly do student loan payments function?
With the Standard Plan, you’ll be paying off your loan(s) over a period of 10 years. Your monthly payments follow a schedule designed for a 10-year duration, and they’re not influenced by your income or how much you can afford. Keep in mind, though, that your monthly payment under the Standard Plan will probably be higher compared to a plan based on your income, like the IDR plan.
How can I figure out the ideal student loan plan for myself?
Choosing a repayment option tied to your income is a clever move to reduce your payments. Take the Saving on a Valuable Education (SAVE) Plan, for instance; your monthly payments will never exceed 10% of your discretionary income. If you earn less or have a bigger family, your monthly payments will be even lower.
Nicole Hughes is a credit card and loan expert content writer based in New York. With a knack for simplifying financial jargon, she creates informative and reader-friendly content. Her work empowers individuals to make informed decisions regarding credit and loans, ensuring financial well-being.
