How to Choose the Best Student Loan Refinance Company

First Republic Bank
September 2, 2020

There’s no magic formula to becoming more financially stable, and graduates who carry student loan debt often feel as though they’re pushing a boulder up a hill when trying to get a handle on their finances. To help alleviate the burden, many turn to student loan refinancing.

While you may permanently lose special student loan benefits like forbearance, deferment and income-based repayment, refinancing student loans could save you money in the long term. There's more than one way to refinance your student loans, so it's important to familiarize yourself with the flexible financial products that can help you combine and pay off your debt, such as a personal line of credit. A personal line of credit offers convenient access to funds that borrowers can use for a variety of purposes, including refinancing existing debt from multiple lenders into one convenient monthly payment.

First Republic’s Personal Line of Credit – access funds with fixed rates from 2.25% APR (with discounts).

The following tips can help you know what details to look for when selecting the best company for your student loan refinance needs.

Note: Currently, all payments for certain types of federal student loans are suspended until May 1, 2022 per an executive order by the President. Interest will not accrue during this time period. (Note updated on 12/22/2021)

Look for lenders offering shorter terms and low fixed-interest rates.

You may have spent upwards of 10 years working hard for your degrees. Why should it take longer to pay for them? One of the most effective strategies to pay off your student loans faster and save money on your overall loan repayments is to refinance to a shorter loan term at the lowest possible interest rate.

Let solid customer experience make the decision for you.

Reputation matters, and you want to feel good about your lender. A quick Google News search can provide insight into recent events and noteworthy incidents regarding the organization. However, to understand how a company is perceived by its clients, the Net Promoter Score (NPS) provides a measure of customer experience and loyalty. The score ranges from -100 to +100; anything above 0 is considered good, above 50 is excellent and above 70 is world-class. First Republic, for example, has an overall NPS of 72, while the U.S. Banking Industry average sits at just 34.1

Choose a company with a proven refinance track record.

Stability in a lender matters more than ever in today’s economic environment. Having a lender with decades of consistent, positive performance gives you confidence it can weather any tough economic times. It also provides insight into its leadership’s focus on longevity.

You’ve worked hard to get where you are and deserve a partner whose mission is to help you succeed.

When you’re ready to accelerate your financial growth, we’re here to help with a personal line of credit that can also be used for student loan refinancing and beyond.

First Republic’s Personal Line of Credit – access funds with fixed rates from 2.25% APR (with discounts)1.

1. Source: FRC/Greenwich Associates NPS Study (2019).

1. Annual Percentage Rate. Rates effective as of 06/15/2020 and are subject to change.

Borrower must open a First Republic ATM Rebate Checking account (“Account”). Terms and conditions apply to the Account. If the Account is closed, the rate will increase by 5.00%. Rates shown include relationship-based pricing adjustments of: 1) 2.00% for maintaining automatic payments and direct deposit with the Account, 2) 0.50% for depositing and maintaining a deposit balance of at least 10% of the approved loan amount into the Account, and 3) an additional 0.25% for depositing and maintaining a deposit balance of at least 20% of the approved loan amount into the Account.

Personal Line of Credit consists of a two-year, interest-only, revolving draw period followed by a fully amortizing repayment period of the remainder of the term. Draws are not permitted during the repayment period. Full terms of 7, 10 and 15 years available.

This product can only be used for personal, family or household purposes. It cannot be used for the following (among other prohibitions): to refinance or pay any First Republic loans or lines of credit, to purchase securities or investment products (including margin stock), for speculative purposes, for business or commercial uses, or for the direct payment of post-secondary educational expenses. This product cannot be used to pay off credit card debt at origination.

Personal Line of Credit minimum is $65,000; maximum is the lesser of $350,000 or debt to be repaid at origination plus $100,000. If no debt to be repaid at origination, the maximum loan amount is $100,000. Line of credit cannot be fully drawn at origination.

The terms of this product may differ from terms of your current loan(s) that are being paid off, including but not limited to student loans. By repaying such loans, you may permanently be giving up tax and repayment benefits, including forbearance, deferment and forgiveness, and you may not be able to re-obtain such benefits if this loan is refinanced with another lender in the future.

Contact your legal, tax and financial advisors for advice on deciding whether this is the right product for you. Terms and conditions apply.

Product is not available in all markets. For a complete list of locations, visit Applicants must meet a First Republic banker to open account. This is not a commitment to lend; all lending is subject to First Republic’s underwriting standards. Applicants should discuss line of credit terms, conditions and account details with their banker.

The strategies mentioned in this article may have tax and legal consequences; therefore, you should consult your own attorneys and/or tax advisors to understand the tax and legal consequences of any strategies mentioned in this document.

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