Student loan debt is a huge issue in the United States. According to a report from the Institute for College Access and Success, 71% of students who graduated in 2018 had student loan debt, with an average balance of $29,000. This article will discuss nine lenders who can help you refinance or consolidate your student loans. By refinancing your student loans, you may be able to save money on interest rates and reduce your monthly payments.
Here are nine of the best lenders or student loan refinance companies in 2022:
-SoFi
Pros:
-This service gives you an estimate of your credit score without any intricate cuts.
-There are no origination or application fees, and you can get a 0.25% interest rate discount if you sign up for autopay.
-SoFi also offers unemployment protection, temporarily pausing your payments if you lose your job.
Cons:
-To qualify for the lowest rates, you need excellent credit.
-The forbearance limit is not disclosed
-Limited loan terms: The most extended loan term offered by SoFi is 20 years, which may not be long enough for some borrowers.
-Earnest
Pros:
-Earnest was one of the first lenders to offer student loan refinancing, and they have a good reputation.
-There are no origination or application fees.
-You can choose your repayment term length, from five to 20 years.
Cons:
-There’s no limit on how long you can forbear from paying back your loan
-CommonBond
Pros:-
CommonBond offers a wide range of repayment options, from full deferral to immediate repayment.
-There’s no origination fee, and you can choose your repayment term length.
-CommonBond also has a social commitment program, which means that for every loan that is refinanced through them, they will fund the education of a child in need for one year.
Cons:
-To qualify for the lowest rates, you need excellent credit.
-The forbearance limit is not disclosed
-Laurel Road
Pros:
-This lender offers both fixed and variable rate loans.
-There are no origination or application fees, and you can choose your repayment term length.
-Laurel Road also offers a 0.25% interest rate discount if you sign up for autopay.
Cons:
-No flexibility if you want to go back and finish your degree
-PenFed Credit Union
Pros:
-PenFed is a credit union, so membership is required.
-There are no origination or application fees, and you can choose your repayment term length.
-PenFed also offers a 0.25% interest rate discount if you sign up for autopay.
Cons:
-No flexibility if you want to go back and finish your degree
-Citizens Bank
Pros:
-Citizens Bank has both fixed and variable rate loans available.
-There are no origination or application fees, and you can choose your repayment term length.
-Citizens Bank also offers a 0.25% interest rate discount if you sign up for autopay.
Cons:
-The forbearance limit is not disclosed.
-SunTrust
Pros:
-SunTrust has both fixed and variable rate loans available.
-There are no origination or application fees, and you can choose your repayment term length.
-SunTrust also offers a 0.25% interest rate discount if you sign up for autopay.
Cons:
-The forbearance limit is not disclosed.
-Splash Financial
Pros:
-The rates at Splash Financial are some of the most competitive you can find, and that’s because they work with several different lenders.
-The company’s financial loans come with no origination fees and only transparent pricing.
Cons:
-You will actually borrow money from different banks or credit unions.
-$5000 minimum loan amount
-College Ave Student Loans
Pros:
-With four repayment options to choose from, College Ave helps you better-fit student loans into your budget.
-College Ave is the one-stop shop for students at all stages in their student loan journey, with calculators and scholarships to help you.
-The College Ave rapid application process has been designed to get you in and approved within minutes.
Cons:
-College Ave offers parent loans that require at least interest-only payments while the student is in school.
-The forbearance program at College Ave offers limited-time spans for repayment, with three or six-month increments up to 12 months.
-College Ave doesn’t publish its income or credit requirements, so you’ll have to ask for a quote before determining if it’s eligible.
1. Student loan consolidation and refinancing can save you money in the long run
If you have multiple student loans, it may be a good idea to consolidate them into one loan. Consolidation can help you save money on interest rates and reduce your monthly payments. You can also refinance your student loans to get a lower interest rate.
Refinance Student Loans
Refinancing is a great option if you’re looking to save money on your student loans. You can get a lower interest rate, which can help you save money over the life of your loan. You can also choose a new repayment term length, which can lower your monthly payments.
Some things to keep in mind when refinancing your student loans:
-You may lose federal loan benefits, like income-driven repayment plans and loan forgiveness.
-You’ll have to go through a new application process, which can be time-consuming.
-You’ll need good credit to qualify for the best interest rates.
Student loan refinancing offers many benefits, but it’s important to understand the pros and cons before you decide if it’s right for you.
Private Student Loan Consolidation
If you have private student loans, you can consolidate them into one loan. Private consolidation is similar to federal consolidation, but there are some key differences.
-With private consolidation, you’ll only be able to consolidate private loans.
-You’ll likely need good credit to qualify for a low-interest rate.
-You may be able to choose a new repayment term length.
-You may lose some borrower benefits, like interest rate discounts.
2. It’s important to compare lenders before choosing one
Many different lenders offer student loan consolidation and refinancing. It’s essential to compare the interest rates, fees, and terms of each lender before you choose one. You can use a student loan calculator to compare different lenders and find the best option for you.
3. The best lenders offer low-interest rates, flexible terms, and helpful customer service
When choosing a lender to consolidate or refinance your student loans, it’s essential to look for one that offers low-interest rates, flexible terms, and helpful customer service. The best lenders in this space include Laurel Road, PenFed Credit Union, and Citizens Bank.
Pentagon federal credit union offers an excellent deal for refinancing and consolidating your student loans. They also have no origination or application fees; you can choose your repayment term length. The only downside is that they do not offer a grace period, which means you will have to start making payments immediately after graduation.
Citizens Bank is another good option for refinancing and consolidation. They have both fixed and variable rate loans, and there are no origination or application fees. You can also choose your repayment term length. The only downside is that the forbearance limit is not disclosed.
Federal Student Loan Benefits
-The interest rates are lower than most private lenders.
-There is no origination fee.
-You can choose your repayment plan and term length.
-There is the potential for loan forgiveness after 20 or 25 years.
Consolidation Loan Benefits
-You only have to make one monthly payment.
-You can extend your repayment period, lowering your monthly payment.
-You may be able to get a lower interest rate.
Refinancing Loan Benefits
-You could get a lower interest rate and save money.
-You can choose a new repayment term length.
-Some lenders offer additional perks, like cash back or a lower interest rate for autopay.
Refinancing your student loans can be a great way to save money on interest and reduce your monthly payments. These nine lenders are some of the best options to consider in 2022. Student debt refinancing process and how it can save you money each month. If you’re struggling to make your monthly student loan payments or are looking to save money on interest, refinancing your student loans could be a good option.
