Best Student Loan Refinance Lenders Of September 2021

China iTech Ghana
Wednesday, September 29, 2021 | views Last Updated 2021-09-29T06:55:30Z

Student loan refinancing can mean big savings in the right circumstances. Here’s how it works: A new private company—typically a bank, credit union or online lender—pays off the student loans you choose to refinance, and you’ll get a new loan with an interest rate tied to your credit history, income and other characteristics.

You should consider student loan refinancing if you have a good or excellent credit score and stable income (or a co-signer who does) and your current loans have high enough interest rates that you’ll benefit from a lower rate. In some cases, you can even refinance federal PLUS loans your parents took out to help you pay for college, relieving them of payment responsibility.

Below we’ve identified the best student loan refinance lenders for those who qualify, based on features including interest rates, availability to borrowers and hardship repayment options. None of the lenders on our list charge origination or prepayment fees, though some charge late fees. In some cases, they offer a separate refinancing product for parent loan borrowers; we scored each based on their student loan refinancing option only.

Tips for Comparing Student Loan Refinance Lenders

ince the goal of refinancing is to save money on interest, you’ll likely want to choose the lender that offers you the lowest rate you qualify for. Variable rates tend to be lower than fixed rates, but they could go up in the future; only opt for a variable rate if you plan to pay off your loan quickly.

Similar to private student loans for those attending school, refinance loans aren’t required to offer the same consumer protections that federal loans do, such as income-driven repayment plans or forgiveness. But some refinance lenders provide more than the standard 12 months of forbearance throughout the loan term, and/or additional loan modification options for borrowers having difficulty making payments.

Refinancing is typically best for those with strong incomes and job stability. But life is unpredictable. If you think you might need to take a pause from payments or to lower your monthly bill, consider choosing a lender with a more generous forbearance policy.

Also, if you choose to refinance with the help of a co-signer, go with a lender that offers a co-signer release policy so you can take on the full repayment obligation when possible. That will protect your co-signer’s credit from the negative marks that could occur if you fall behind on payments.

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  • Best Student Loan Refinance Lenders Of September 2021

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