Student Loan Refinancing
Student Loan Refinancing Questions
We currently partner with the top 7 lenders in the student loan refinancing space. Each lender have their own approach when making applicant approval decisions so we’ve reviewed each of them in details here:
If you have a cosigner, such as a parent or a relative, who has a stronger credit profile, adding a cosigner to your application can improve your chances of getting approved and/or help you qualify for a lower interest rate. We partner with refinance companies that allow you to release your cosigner in as short as 1 year as long as you make payments on time and in full. Please contact us to learn more.
Getting a rate quote does not impact your credit score. Lenders only do what is called a “soft credit pull” to provide you with an initial rate. Learn more about the different type of credit pulls here.
The key is to understand whether these downsides are important to you or whether the only thing that matters to you is to save as much as possible dollar-wise.
When you refinance Federal loans with private loans, you will lose some of the benefits specific to Federal loans
Federal student loans come with protections that can help you if you’re struggling with your payments. You may be able to use repayment plans that decrease these amounts or put them on pause altogether.
You also may qualify to have loans forgiven under certain criteria. Most private loans do not offer options like these, and once you replace your federal loans with a private loan, you cannot move or consolidate the loan back into a federal loan to get these benefits.
This is a pretty complex topic. If you have specific questions, join FitBUX (it’s free) and schedule a call with a FitBUX Coach (This is free too). We will be glad to help.
A cosigner is a person who agrees to pay a borrower’s debt if he or she defaults on the loan.
The person asked to cosign a loan usually has a good credit score and a lengthy credit history, which greatly improves the primary borrower’s odds of approval/getting a lower rate.
Some of our student loans refinance partners have release clauses when you apply with a co-signer whereby the co-signer may be removed from a loan once the primary borrower has shown financial discipline and on-time payments. Learn more here.
Some of our refinance partners allow you to defer payments in times of economic hardship, including the loss of a job. Your payments can be deferred up to 3 months at a time, providing you with flexibility similar to the benefits offered through Federal loans. Each refinance company may have its own set of policies so please inquire with the refinance company when applying.