Refinance Student Loan Process

Here we'll explain the refinance student loan process. We'll tell you how it works and detail the benefits of refinancing.

Student Loan Refinancing Explained

Student loan refinancing allows federal and private student loan holders to consolidate their loans and refinance for a better rate. You might refinance student loan for several reasons. For one, if you are having trouble managing your monthly student loan payments, you might consider refinancing to reduce your burden. Secondly, if you took out student loans at a time when rates were high or you have variable interest rates, you might refinance student loan to lock in a low, fixed interest rate for the life of the loan. Finally, you might also refinance student loan for the convenience of one monthly payment. It can be quite a hassle to make payments to multiple student loan creditors each month, and refinancing can help you bundle your debts into one easy payment.

Who Can Refinance Student Loan

Regardless of whether you have federal or private student loans, you are eligible to refinance student loan. Federal consolidation/refinancing programs are free, without origination or application fees, because they are backed by the federal government. Though sponsored by the government, these loans are still issued by private lenders. Private student loans, on the other hand, are not federally guaranteed and are usually not free. These types of loans tend to be credit-dependent, so you might need a co-signer to refinance private student loans. Parents are also eligible to refinance student loan if they have PLUS loans or private loans to consolidate.

Benefits of Refinance Student Loan

You will reap substantial benefits when you refinance student loan. Here are a few of the main advantages to refinancing:

• Reduce your monthly payments by over 50% in some cases
• Get a low, fixed interest rate for the life of your student loans
• Combine all student debts into one bundle with one payment
• Boost your credit score by improving your debt-to-income ratio
• Further reduce your interest rates by taking advantage of our borrower benefit packages
• Pay off high-interest credit cards with the money you save with refinance student loan
• Automatic withdrawal option...no more checks to write!
• Tax-deductible interest

Things you need to know