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.
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 potentially until June 30, 2023, per an executive order by the President. Interest will not accrue during this time period. For more information, please visit ed.gov. (Note updated on 11/28/2022)
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.
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.