Refinancing student loans is one of the best steps to reduce your student loan burden. Refinancing can help you reduce your interest rate, extend your payback period, or give you a repayment plan better suited to your situation. Refinancing is ideal for borrowers with lots of private loans or those with federal loans that are not taking advantage of any of the federal repayment programs, such as Income-Based Repayment.
Finding the right refinancing company is tough. Fortunately, we’ve identified a few of our favorites below:
[table id=2 /]
• Earnest offers federal and private loan refinancing using smart technology that gives you radical flexibility and total control over how you choose to repay your loan.
• Fixed interest rates as low as 3.50%, variable rates from 1.90% APR (updated June 2015)
• Set your exact monthly payment amount and total number of months to pay off
• Skip one payment a year, then make it up over time
• Switch between fixed and variable rates at no charge
• Pay bi-weekly to pay down your principal faster and save on interest
• Combine your federal and private loans into one loan, with one payment
CommonBond offers federal and private loan refinancing for alumni of over 700 different graduate level programs with more schools on the horizon for 2015.
• Fixed interest rates as low as 3.74%, variable rates from 1.93% APR (updated June 2015)
• Available for borrowers who are alumni of CommonBond’s approved graduate programs; you can find the complete list of schools and degrees here.
• For each degree CommonBond funds, they cover a year of education for a student in need abroad
• Good for borrowers with a very good credit history
• Access to investor-fueled lending network, which can offer additional career opportunities for borrowers
LendKey offers federal and private loan refinancing with all loans funded by a network of community lenders.
• Many lenders allow you to consolidate your federal and private student loans, including graduate loans, into one convenient loan at a great rate.
• Many of the student loan refinance lenders offer cosigner release to creditworthy borrowers who have made consecutive, full on-time principal + interest payments.
• Many of the refinance lenders offer various repayment options, including interest-only payments for the first four years.
• Most community lenders don’t charge borrowers origination fees.
• Automatic payments could drop your interest by 0.25%.
Citizens Bank offers federal and private loan refinancing through their Education Refinance Loan.
• No application, origination or disbursement fees
• No prepayment penalty
• Multiple term options
• Loans from $10,000 to $170,000 depending on your level of education