It’s a sad reality that most students cannot graduate from a four-year university without being saddled with thousands of dollars of debt. And if you choose to stick with your standard loan repayment plan without looking into other options, you could be stuck paying sky-high interest rates for ten years or more!
This is where refinancing your student loan may prove to be advantageous. For example, if you have a reliable monthly income combined with a respectable credit score, you may be able to qualify for a lower interest rate. This can save you thousands in interest, and you might even be able to pay your loan off more quickly.
Most students have several different loans from each school year, and in some cases, the loans have different servicers. This can make keeping track of your loans very difficult. However, when you choose to refinance and consolidate your student debt, it’s much easier to manage as one easy payment.
If you’re sold on refinancing and consolidating your student loan debt, then it’s important to choose your new bank carefully. Here is a list of common student loan refinancing businesses where we discuss the benefits and downfalls of each company. Ultimately, it’s all about finding what will work best for your unique situation.
LendKey
If you’re looking for an online lender, LendKey is known for its exceptional customer service and satisfaction. Although they do not offer direct consolidation loans, they are able to connect you with a large network of banks and credit unions to help you find the lender you need.
iHelp
iHelp is an online lender that offers competitive interest rates. The great thing about this company is that they are able to offer programs to help graduates through difficult times. For example, if you are in an accident and unable to make a payment, iHelp will make accommodations for extenuating circumstances.
Earnest
If you pride yourself on being financially responsible, Earnest might be a great fit. They’re able to offer low interest rates, sometimes as low as 3.5%. Merit-based loans are also available to those who don’t yet have an adequate credit history. If you’re just out of college and your credit score doesn’t reflect your financial responsibility, Earnest could be a great choice. However, their application process is lengthy and thorough.
SoFi
SoFi is one of the most well-known online lenders. They’re able to take many other factors into consideration besides your credit score. If you have a steady, reliable job, a college degree, and a good credit score, you might be able to qualify for their loans with a low interest rate. They do have an in-depth vetting process, so if you’re not yet established in your job or you don’t have a high level of education, SoFi might not be your best option.
Purefy
If you’d like to have the knowledge and expertise of big banking without the sub-par customer service, Purefy might be a good option for you. Their founders come from big banks, but they have an emphasis on functioning as a small company.
Citizens Bank
There are many exclusively online companies on this list, but Citizens Bank is not one of them. They are not an online company, but they have an excellent reputation as an established bank, and they’re able to offer a large range of interest rates and possibly several discounts.
College Ave
If you have an above average income and credit score, College Ave might be an option worth looking into. College Ave is a loan consolidation company that lends through Liberty Bank or First Trust Bank, but this company probably won’t work out for you unless you have moderate income combined with a good credit score.
Conclusion
When it comes to student loan options, many borrowers falsely believe that they are stuck with the first repayment terms that come along. However, this isn’t the case. In fact, most of the time, staying with your initial loan terms can cost you thousands more over the term of the loan.
If you’d like to consider refinancing or consolidating your loans in order to secure a lower interest rate or lower payments, many of the companies listed should be on your to-do list to research. Although they each have their own benefits and drawbacks, you’re almost certain to find the perfect refinancing company to help you reach your financial goals.
Photo Credit: zerohedge
It is true that many had struggled badly when it comes to repayment of the student loan. Where option of flexible payback is very minimal specially when student loan is concerned. But with advent of so many instant loaning option. Things have been taking a positive look.