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Refinancing Student Loans
Student refinancing loans can help individuals pay off their student loans and repay the amount at a lower interest rate than the original. This type of loan differs from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
Student refinance loans are becoming increasingly popular with college graduates looking to save money. Using one of LendingCapital’s lending partners, you can find the best interest rate and apply for a student loan refinance in minutes.
How do Student Refinancing Loans Work?
Many students take out student loans to pay for their post-secondary education. With student loan refinancing, the lender pays off the student loan for the student. The students then have to pay back the loan at a lower interest rate than that of the original student loan. Refinancing your private student debt with another lender can also help you lower your monthly repayments or remove a cosigner.
When is the Best Time to Refinance Your Student Loans?
Before refinancing your student loans, you should make sure you’re in a financially secure position to pay them back on time and have the credit score or a creditworthy cosigner to qualify to get competitive rates. Another thing to note is that if the interest rates drop, you can also consider refinancing again for better terms.
You should also make sure you don’t need any federal plans or protections before you refinance your loans. Once you refinance federal loans with a private lender, you’ll no longer have access to federal plans.
Eligibility to Refinance Student Loans
Before you proceed with refinancing your student loans, check that your loans are eligible and make sure your choice is the right fit.
Eligibility for Federal Student Loan Refinancing
Most but not all federal loans are eligible for federal student loan consolidation. You will be eligible to consolidate a federal student loan after you graduate, leave school or drop below half-time enrollment.
Eligibility for Private Student Loan Refinance
Eligibility for private student loan refinancing depends on various factors including:
- Minimum credit score: You’ll usually need a minimum credit score in the good or excellent range. But even if you qualify for refinancing, you may not get a lower interest rate than you have now.
- Credit history: Lenders typically review credit history for derogatory marks, such as late payments, and consider this information to determine your creditworthiness.
- Proof of income: Lenders will often have minimum annual income requirements that you need to meet to take out a loan.
- Debt-to-income ratio: The debt-to-income ratio or DTI ratio is the percentage of your total monthly income that goes toward debt payments, and it can help lenders determine if you’ll have trouble making your loan payments.
Some lenders may also require you to meet other conditions for refinancing student loans. If you can’t qualify on your own, some lenders might approve you with a creditworthy co-signer. Lenders could also restrict refinancing to those who:
- Complete degrees
- Have certain types of degrees, such as law or medicine
Why Should You Take out Student Refinancing Loans from Lending Capital?
Lendingcapital partners with banks, credit unions, and other lenders to bring you market-leading rates. Our search program gives you access to over 30 plus lenders with a single soft pull which does not affect your credit.
Our search program can help you save time, money, or lower your monthly payments and allows you to combine multiple student loans into one easy-to-manage loan. With low rates and multiple available repayment terms, you can find a refinance loan from one of LendingCapital lending partners.
Benefits of Student Refinancing Loans from LendingCapital
- Generally Lower rates
- Easy application process less than one minute with results in 60 seconds or less 24/7
- Save money, time, search over 30 lenders in one shot…
- Consolidate multiple loans into one.
- Possibly add or remove a cosigner.