Picking the right lender for refinancing student loans is important. Besides finding a good interest rate and loan discounts that will save you money, you want to consider the repayment term and other benefits. Here are some things to consider:
What are the requirements for approval?
Do they offer any options if you lose your job, such as an option to temporarily postpone payments?
If you are applying with a cosigner, do they offer an option for cosigner release?
What fees do they charge, such as late fees or origination fees?
Do they offer a death and disability discharge if you die or become disabled?
Are there any perks available, such as an option to skip a payment or change your due date?
How much will you have to pay per month and in total?
Does the company have a good reputation? What do reviews day?
Once you have decided that refinancing student loans is right for you, now it’s time to apply. The items required for refinancing will vary between lender.
Most lenders advertise that the application process is simple and does not take long.
When you are refinancing, you’ll also have the option of choosing a fixed interest rate or a variable interest rate. A variable interest rate is often lower, but keep in mind, this interest rate can increase dramatically. A variable rate could even increase monthly. A fixed interest rate will stay the same until you pay off the loan.
If you have decided that refinancing student loans is not the best option for you or you don’t qualify, there are still options to manage student loan debt.
The ChangEd app helps student loan borrowers pay down their debt faster. Link your credit and debit cards and with every purchase you make, the total is rounded up, and that “spare change” is added to your student loans. You can also earn points for potential free payments. Read our review to learn more.
At Savingforcollege.com, our goal is to help you make smart decisions about saving and paying for education. Some of the products featured in this article are from our partners, but this doesn’t influence our evaluations. Our opinions are our own.