Understanding The Student Loan Refinancing Nuances with FitBUX

April 10, 2019 No comments exist

By Joseph Reinke, CFA, Founder of FitBUX

Each student loan refinance company has their own nuances when deciding whether an applicant is a “good risk”, i.e. likely to repay her loans in full and on time if approved.

This story, highlights how refinancing with the right student loan company can make a significant difference when it comes to saving time, money and stress.

Also, to help you, we developed a step-by-step student loan refinance checklist.  Complete the info below and we’ll send you the checklist via email!

The Situation

Mary decided that she would like to explore the possibility of refinancing her private student loans because she heard it could save her money. She decided to build her profile at FitBUX and use FitBUX’s free student loan refinance service.

She owed $60,000 in private loans that were split into 3 different loans:

Loan 1: $29,000 @ 6.0%

Loan 2: $28,000 @ 7.75%

Loan 3: $3,000 @ 6.0%

Mary has good credit and makes $83,000 per year. She also has an additional $140,000 in Federal loans.

The Student Loan Refinance Company

Based on Mary’s FitBUX Profile, her FitBUX Coach pointed her to one of their our 7 refinance partners.  This specific partner tends to have a great loan product for those with good credit, a good salary but may have a large amount of overall student loan debt.

Mary was pre-approved for a 10-year fixed rate loan at 4.37% which was much lower than any other company would offer.

So Mary decided to submit her application to refinance. All good so far.

The Bad News

A few days later, Mary received an email saying that she had been denied the loan.

Now, if Mary had simply clicked a link on one of these lead generation blogs and applied for a similar refi, she would have hit a proverbial “wall”, be declined and have nowhere to go.

Instead, Mary contacted her FitBUX Coach to game plan the next steps.

Knowing Student Loan Refinance Company Nuances

When Mary contacted her FitBUX Coach with the bad news, he immediately figured something didn’t seem right because she fit the profile the student loan refinance company looks for. So he reached out to FitBUX’s dedicated representative at the student loan refinance company to figure it all out.

Sure enough, the FitBUX Coach was right.  Her overall amount of student loans impacted how much of her private loans this refi company was willing to refinance.

All she had to do to qualify was exclude Loan #3 from above from the refinance.  By doing so she would qualify to refinance her loans at 4.37%.

Had her FitBUX Coach not known this nuance about the student loan refinance company and had not been able to reach out to an “insider” directly, Mary would not have been able to refinance.

Instead, she will save $12,000 and repay this loan in 10 years, saving time, money and gaining peace of mind.

We see examples like this everyday…refinancing is not as simple as it sounds and it can be a fairly opaque space to navigate.

Student loan planners are hard to find. If you would like free expert help deciding if student loan refinancing is right for you, check out FitBUX’s free student loan refinance service or read our student loan refinancing guide.

If you’d like to read more student loan refinance articles then visit our student loan refinance blog page.  Want to read more about money, check out FitBUX’s main blog page.

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