With the increasing costs of colleges, the number of students that take loans are also increasing day by day. Students take federal and private loans to pay their college cost and according to a report almost 70% of the students take loans to pay their college costs. So with the rapid increase of this number there are people who want to return the loan and it is sometimes difficult to do so.
One of the best way to decrease the amount of the debt you own is to refinance your debt. A simple refinance can help you save hundreds of dollars that you had to pay in the form of interest and now you can also get a lower interest rate. There are many companies that you can use to refinance your loan, each company has its own terms and conditions with different requirements and payment rates. With so many different options available it is easy to choose the cheapest option with the lowest rates.
If you have a federal loan then make sure that before you refinance that loan, you check all the benefits that comes with these type of loans because if you will refinance a federal student loan then you will lose all these benefits. For instance you can apply for a loan forgiveness program if you have a federal student loan.
So let us talk about some of the companies that you can use to refinance your student loan. Starting from the 1st,
SiFi is one of the famous loan refinancing company. They are one of the pioneer in this industry and have helped many people to save a very big amount. The company was started in 2011 by students of Stanford in order to help their fellows to pay off their student loans. Now they are provide student loans and are trusted by the students and they also offer refinancing for personal loans, mortgage loans and student loans. Apart from that they also offer life insurance and can help you to compare rates offered by different companies. One of the best thing about SoFi is that you can refinance your loan for a lower amount if your credit score is 650 or more. There are certain other requirements but you can simply fill up a form to know what rates you can get.
There are many benefits of using SoFi, they offer low interest rates in comparison to other companies. The time duration can be in between 5 years to 20 years depending upon the amount you are borrowing. You can take a minimum loan of 5 thousand dollars for a federal or a private loan. Another benefit of using is that when you will choose the option of Autopay, you will get a discount of 0.25% on your interest rate. Another benefit is that you can have access to advisors from which you can take financial assistance. Apart from all these benefits, SoFi also provide unemployment protection, so you do not have to pay any installment if you do not have a job.
If you get approved, there are no better options than that. Although there requirements are more than the competitor’s sites but they also offer more benefits than the competitor’s sites.
As the name suggests Lendkey is private company that was founded in 2007 and it enables people to get students loans for a lower interest rate and apply for consolidation and here you can also get home improvement loans. The company has a slightly different approval method than any other competitor company. The company partners with credit unions and banks to provide you the lowest possible interest rate. The facilities you can get depends upon your lender union as this company is a marketplace rather than a direct lender. Make sure you review all the term and conditions carefully because each company has its own term and conditions.
There are many benefits of using Lendkey, you can get fixed APR rate in between 3.15% to 8.79% depending upon your loan. You can get a loan of $5,000 to $300,000 depending upon your degree for a time period of 5 to 20 years. Whether you are have a federal loan or a private loan, whether you are an undergraduate or a graduate you are eligible to apply in both the cases. Another benefit that you can take is that when you subscribe for AutoPay, you will get a discount of 0.25% on your interest rate.
The company has a very good customer care service and is highly recommended by its users. One of the reasons to join is that if you have got a loan with a cosigner then if you pay on time for a year then your cosigner will automatically get removed.
One of the best companies to refinance your private and federal loans is Earnest, the company is in business since 2013 and specializes in consolidation of student loans. You can get lower rates in comparison to other companies but the approval process can take more time because they do not only focus on Credit Score alone. Here you can get a fixed APR of 3.49% to 6.32% and a variable APR of 2.75% to 5.87%. You can get a minimum loan of $5,000 for a time period of in between 5 to 20 years. There is no limit for maximum debt amount. Whether you are an undergraduate or a graduate, you are eligible to apply and one of the best thing about this company is that you have the ability of deferring payments for a time of 3 years.
If you have an amount of debt in student loan then this company is the most preferable and it also has one of the most flexible repayment options that you can use.
4- Discover Student Loans
The Student Loan Cooperation also known as Discover Student Loans was founded in 1992. You can only use this company if you are a permanent US citizen who is residing in the country. In the past you can use this company to get student loans but now you can also use this company to refinance your student loan. If you have a student loan of less than $150 k than you can use this company for a consolidation of your debt. The company brings in many benefits if you are using it to refinance your previous loan as you can get a fixed APR of 5.24% to 8.24% and a variable APR of 4.74% to 7.99%. One of the benefits is that they provide a 24/7 customer service to all the users and here you can refinance all kind of loans like all the companies listed above.
As with other mentioned companies, you need a very high score to be considered for a debt, here you can get a loan for a lower score and you can also get discount on your interest rate of 0.25% if you subscribe for AutoPay.
5- Splash Financial
One of the best companies that you can consolidate your student loan is Splash Financial. They are basically a third party loan providers as they connect you to banks and different other borrowers from which you can get loans on very low interest rates. This company work outs on your behalf and ask banks to provide loans for a lower interest rate than usual. The company also has a very user friendly website which you can use and on that site you can get a quote for yourself within 3 minutes and if you need a loan, then the entire process will only take a quarter of an hour. You can refinance any kind of student loan for a time period of 5 to 15 years with an interest rate as low as 3.75%. The amount of money that you can owe lies in between $7,500 to $300,000. If you are a graduate then you can also get discount from this company. To be considered for consolidation, you need a credit score above than 700.
6- College Ave
College Ave Student Loan company is one of the platform that you can use to get private loan. The company is in business since 2014. The company provides one of the lowest rates on student loans and has one of the most flexible repayment option if you compare with other companies in the list. Offering a low Fixed APR rate of 3.5% to 8% and a variable APR of 3.13% to 7.63% the company has one of the cheapest options. The minimum of amount of debt that you can owe from this company is $5,000 for a time period of 5 to 15 years. This can serve as a great platform to save money when it comes to refinance your student loans. Another benefit of this company is that if you are a Nationwide customer, you can simply take a discount of 0.5% on your interest rate. Thus it is the most under-rated and cheap platform to use.
So these are some of the options that you can consider while you want to consolidate you debt. Make sure you choose the best company in order to save most of the money. Do comment in the section below and let us know if you have any queries regarding the companies because we would love to hear from you.
Best of luck!