Finding the best place to refinance student loans or consolidate your college debt isn’t always easy. Higher education is one of the most important requirements for a successful career today. It is undeniable that a professional or academic degree in the subject of your choice can increase your chances of securing that dream job. This can go a long way towards helping you achieve your life goals, and be a successful contributor to society.
However, the fact remains that education does not come cheap. Currently, over 45 million Americans have taken out students loans for their education. The total amount of student loan debt is well past over $1.5 billion, and it is expected to rise even more.
With more and more students struggling with repayments and high interest rates, this is beginning to have a serious effect on their career goals as well as future plans. But there is a good news. Students now have the option to get their loans refinanced, thereby taking some of the burden off their shoulders and allowing them to focus on their future instead.
Best Places To Refinance Your Student Loans in 2019
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Here is a list of the best banks and lenders to refinance student loans and get your college debt under control in 2019.
Citizens Bank
Citizens Bank offers you student loan refinancing programs along with all the facilities of a traditional bank. Apart from attractive rates of interest, the bank offers a 0.25% interest reduction for automatic payments, with an additional 0.25% for a Citizens Bank account. Borrowers also have the option of opting for cosigner release after 36 consecutive payments, and economic hardship forbearance options.
CommonBond
CommonBond offers refinancing programs for student loans as well as Parent PLUS loans. With attractive interest rates and a hybrid interest option that allows for a mixture of fixed and variable rates, this is one of the best places to refinance your loans. Further, CommonBond has an Unemployment Protection Program to help you in case you lose your job.
Earnest
The one factor that makes Earnest a preferable choice is its Precision Pricing Model, which provides flexibility to choose your loan amount based on the rates as well as monthly payment sum. As it is a technology based company, loan processing is easy and fast. Along with flexible repayment options, Earnest has their own loan servicing setup, which is a plus.
ElFi
Education Loan Finance (ElFi) is a program offered by SouthEast Bank. Interest rates are fixed as well as variable, with refinance amounts ranging from $15000 or higher. There are no application fees, and a forbearance of up to 12 months is allowed if you are going through a financial crisis.
First Republic
First Republic is another good place to get your loans refinanced. Although the lending rules are stringent, requiring you to have higher loan amounts and credit rating, their interest rates are fixed and one of the lowest in the market. This allows you to get refinanced more affordably.
Laurel Road
Laurel road is the online lending branch of KeyBank. Offering fixed as well as variable rates and zero application fees, this is one of the best options for medical students as it allows them special benefits in terms or payment. Also, it has the option of partial or complete loan waiver in case of death or disability of the borrower.
LendKey
LendKey collaborates with multiple community banks and credit unions to get you some of the lowest interest rates possible. Offering both fixed and variable rates, it allows you the option of interest-only repayments for the first four years of your term.
PenFed
PenFed is an attractive option for refinancing as it offers some of the best rates in the industry. A unique plus point is that PenFed has the option by which your loans may be transferred to your spouse, or even both of your loans can be consolidated together for joint repayment.
SoFi
Along with fixed and variable interest rates, zero origination fees and prepayment penalties, SoFi offers special benefits to students with good career prospects. It also has special programs for entrepreneurs. With fast processing and career support, SoFi is one of the best places to refinance your student loan.
Splash Financial
Another refinancer that allows for spousal loan consolidation, Splash Financial also offers attractive interest rates and flexible repayment plans. It also has special repayment programs for medical students and residents.
What Is Student Loan Refinancing?
Student Loan Refinancing involves the settlement of existing student loans with a new loan amount issued at a preferably lower interest rate. This can be applicable to both private as well as federal loans. The entire loan amount then comes under the ambit of the new lender who issues it to you at a new interest rate, preferably a lower one. This helps you to save money on monthly payments and in the long run allows you to pay off your debt earlier than previously possible.
Important Considerations For Refinancing
Before you go about refinancing your student loans, there are some factors that you need to be aware of. In order to be eligible for refinancing you must meet the credit scores and other financial criteria of your lender of choice. Usually a credit score of 650 and above, together with a steady income stream or good job prospects are enough to make you eligible for a refinancing program. Certain lenders even require a cosigner for you to be eligible for lower interest rates. Be advised that when you refinance your loan through a private lender you are no longer eligible for the income-driven repayment plans and forgiveness programs offered by the federal government.
Student Loan Refinancing Should be Easy
Loan refinancing is a complex process where you need to consider multiple factors in order to decide on the best course of action. By refinancing you move away from the federal protection programs, but if you can put in the work, refinancing can translate in you becoming debt-free faster and even save you money in the process. Ultimately the choice of where you choose to refinance depends on your current financial situation as well as future goals.