College students have a lot to deal with in their lives. For one, they have to decide which degree to pursue to have a successful career. On top of that life-changing decision, they also worry about passing exams.
Yet, the one constant fear college students carry with them when leaving school is student loan debt. They want to find a way to get out of debt faster, which is why it will be very helpful to know more about how to refinance student loans.
Refinancing student loans can be a great option, but many students don’t know how to refinance student loans or even where to begin. To get you started, we have debt consolidation advice for you below.
Just follow the steps and you’ll be on the road to paying off your student loans quickly. You may be able to obtain student loan refinancing in about two to three weeks if you start this very moment. Afterward, you’ll be able to breathe a bit easier.
How to Refinance Student Loans | A Complete Guide for Borrowers
In this article:
- Research Lender Rates
- Select the Lender with the Best Terms and Rates
- Consider Customer Service Options
- Fill Out Student Loan Refinance Documents
- Continue Paying Loans
Research Lender Rates
Lenders that offer student refinancing can be banks, credit unions, and online lenders. The interest rates differ from one lender to another, which is why comparing the rates and refinancing options they offer is a must.
Don’t worry about your credit score being affected. Lenders perform soft credit checks that won’t change your scores.
On the websites, you have a chance to read about their eligibility requirements, variable interest rates, fixed interest rates, and repayment terms. Enter your information and the lender will provide you with options based on your pre-approval eligibility.
Select the Lender with the Best Terms and Rates
Once you have a list of lenders and their loan rate offers, compare the information and then select the best one that fits into your financial goals. You can select a lender based on the lowest interest rates. You also have the option to pick a lender based on repayment terms.
Repayment terms usually run about 5 years, 10 years, or even longer. The longer the repayment term period, the lower your payments will be. Just keep in mind that you’ll pay off the interest for the entire loan period. Consequently, the growing interest can make you pay more in the long run.
Consider Customer Service Options
Don’t forget to check out the lender’s customer service. You should avoid a company that doesn’t offer information when you have a question or concern. Choose a lender that has your best interest in mind.
Online review sites provide a wealth of customer opinions about a lender’s customer service department. After a thorough review, you can select the lender and the offer that will suit your needs.
Fill Out Student Loan Refinance Documents
Now, you’re ready to fill out the application. Provide all of the requested documents, including proof of citizenship, proof of income, and documents about federal and private student loans.
You also need to submit IDs and cosigner information if you have someone with a good credit rating.
You can send this information by mail or upload it to the lender’s website. The lender may contact you and ask for additional documents to help them decide if they’ll offer you a loan.
Continue Paying Loans
Never stop paying your present loans while waiting for approval for refinancing. It can take several weeks to get approval. If you miss a payment, lenders won’t offer student loan refinancing. They’ll worry you won’t have the means to pay them back if you can’t even pay your current loans.
Nonetheless, once the lender approves you, then you can set up automatic payment deductions with the new lender to make sure every payment is taken care of in a timely manner.
Should you refinance your student loans? Check out this video by Jarrad Morrow for an answer:
Don’t let your student loans take over your life. Refinancing student loans can be a simple process if you follow the tips above. Just make sure you find the right lender, work hard on paying your present loans, and pay the lender back the money you owe, you’ll be debt-free in no time.
For now, channel all your energy on being financially free and staying positive.
Got more questions on how to refinance student loans? Share them with us in the comments below.