Table of Contents Hide
- What is Student Loan Refinancing?
- What Are Student Loan Refinancing Rate?
- Why are student loan refinancing lenders made available?
- Student Loan Refinance Lenders: Best 10 Student Loan Refinance Lenders in 2021
It is understandable why you would want to know about The Best Student Loan Refinancing Lenders in 2021. They are a very helpful strategy and I say go for it.
Students loans can be bothersome and sometimes too many loans don’t allow you to grow. It has hindered the lives of students as it is sometimes impossible to get rid of. But not to worry, because there are now students loan refinance lenders that help to ease the burden of loans.
Surely, students looking to find a way out of loans would find his article helpful. This article should give you an insight into each of the best student loan refinance lenders and you can go forth to choose that which works for you.
What is Student Loan Refinancing?
Refinancing is a means to reduce the amount of interest paid on student loans while student loan refinancing is simply when a private lender pays off your existing loans and gives you a different loan on new terms.
It should be noted that refinancing isn’t for everyone as there are criteria to meet.
For example, you need good credit, an unshaken income and if both are missing, a co-signer would suffice.
What Are Student Loan Refinancing Rate?
For Student Loan Refinancing Rates are two rates ultimately, a fixed rate and the variable rate loan. The lender offers you to choose between these two.
With a fixed rate, your interest rate will never change and that means monthly payment will remain steady.
With a variable interest rate, the interest rate can fluctuate every month based on market conditions. If this rate is great only depends on the individual and how comfortable you are with your choice.
Why are student loan refinancing lenders made available?
1. For lower interest rate
A lower interest rate is one of the most important benefits of refinancing. It is the opportunity to lower interest or make changes to the existing interest rate whether it is fixed or variable.
2. Shorter repayment term
You can choose the amount of time you wish to pay back. Is it 5,7,10,15 or 20 years? A longer repayment term may reduce monthly payments while a shorter term helps to pay off debt faster.
Read: Personal Guarantor Loans
3. Consolidating payment
Refinancing allows you to shrink all loans into one monthly payment. This helps to streamline the payment process and save interest.
4. Adding or removing co-signer
By refinancing your student loans, you have the opportunity to remove co-signer on your original loans provided you meet up to criteria.
A co-signer is a healthy option for those with a limited credit history or insufficient income for refinancing.
Student Loan Refinance Lenders: Best 10 Student Loan Refinance Lenders in 2021
Below are lists of Student Loan Refinance Lenders you can choose from
- Rhode Island Student Loan Authority
- Common Bond
- Penfield Credit Union
- Citizens Bank
- Laurel Road
- PNC Bank
This is the first on the list of students loan refinancing lenders. Also known as Tesla, is a Rhode Island-based none profit that refinances loans for customers across the state.
Its rating is 4.5 and not a 5 because it doesn’t provide a co-signer release policy and it charges a late fee.
The loan term is 5, 10, and 15 years, and the amount that can be loaned ranges from $7,500 to $250,000 depending on the degree earned.
RISLA deals with an income-based repayment plan. Interest rate estimate available with undergoing a hard credit check.
#2. Common Bond
CommonBond is another high-ranking student loan refinancing lender with a solid 4.0. Common Bond offers a solid round refinance product with a 24 months forbearance for borrowers experiencing financial hardship.
It operates on a loan term from 5 to 20 years and up to $500,000 can be borrowed. It offers a co-signer policy and an interest rate estimate available without a hard credit check.
Borrowers must have a Bachelor’s Degree and an annual income of $65,000 and a credit score of 680.
Common Bond also run a hybrid loan option that charges a fixed rate for five years and then a variable rate for the following year for a 10-year loan term
#3. PenFed Credit Union
Pentagon Federal Credit Union shortened for PenFed is a student loan refinancing through a partnership with Purefy.
PenFed offers flexibility and low rates. Flexible because a spouse can refinance separate student loans into a single loan and graduates can take up their parent’s loans as their own.
It offers loan terms of 5, 8, 12, and 15 years. A bachelor’s degree is required and so is a minimum income of $42,000 for less than $150,000 and a minimum income of $50,000 if you refinance 150,000 or more.
A co-signer and credit score are part of the eligibility process.
SoFi’s rating is 3.5 in the student loan refinancing space. It offers loans to private students, to graduate and undergraduate.
This online lender allows borrowers with an associate degree to refinance rather than a Bachelor’s Degree only.
It is one of the lenders with a specific amount or limit to refinance. It gives $5,000 to the total balance of loans.
SoFi offers loan terms of 5, 7, 10,13, and 20 and the forbearance program according to individual problems and the interest estimate available without undergoing a hard credit check.
MEFA short for The Massachusetts Educational Financing Authority is a non-profit state-based agency that makes student loan refinancing accessible to customers across the country.
The loan term is 7,10 and 15 years and the loan amount is $70,000 minimum as there is no maximum.
MEFA does not require a degree not does it change the fee. Interest rate estimate without undergoing a hard credit check.
#6. Citizens Bank
Citizens Bank is an American Bank that offers business, personal, students loans, etc.
Refinancing is available nationwide but checking and savings are limited to Connecticut, Delaware, Michigan, and so on.
Ranking 3.5 on this list, Citizens Banks offers loan terms of 5, 7, 10,15, and 20 years. $10,000 to $300,000 of loan money available to borrowers with bachelor’s degrees and $500,000 for those with graduate degrees.
At Citizens Bank, the degree is not necessary for student loan refinancing and also a hard credit check.
#7. Laurel Road
Laurel Road is an online-only lender. It became a brand of Keybank in 2019. It offers student loan refinancing, graduate, medical school, Dental school loan types.
Laurel Road offers borrowers in certain fields to refinance with an associate degree. The loan amount ranges from $5,000 minimum and associate degree graduates can refinance up to $50,000. The loan term is 5,7,10, 15, and 20 years.
Laurel Road’s rating is 4.7 according to USNews.
Earnest offers unique features that are flexible and considerate but this does not make it perfect. The company was established in 2013 and it offers undergraduate, graduate, parent loans, refinance, MBA, law school, medical school loans.
Earnest loan terms are between 5 and 20 years leaving the customer to decide based on their financial capacity. The amount ranges from $5,000 to $500,000.
Unlike some others, borrowers with an associate degree can refinance. One of its quirks is there is no option to apply a co-signer. Earnest has a rating of 4.9 in student loan refinancing.
Discover student loans believes in responsible borrowing that is why it doesn’t require borrowers to have a degree. Its policies are tolerant of customers going through hard times.
The loan term is 10 or 20 years and the loan amount available is from $5,000 up to the student’s loan.
The quirks are there is no cosigner release available and only two loan terms are provided.
Last but not least is PNC Bank.
This Bank offers generous interest with a discount of 0.50% to borrowers who make monthly payments automatically from a bank account.
The loan form is 5,10 and 15 years. The loan amount is $10,000 to $75,000.
To be eligible for a loan, you must have two years of income and working experience. No degree is required.
With a rating of 3.0 according to Forbes Advisor
All of the student loan refinance lenders listed above are designed to help to provide you with suitable refinancing rates whether their ranking is low or not. It’s all up to you to discover that which works for you.