How to refinance student loans at a lower rate

If you took out student loans for school and are now paying them back, you do have options to pay them off faster. One of those options is to refinance your loans. Refinancing your loans locks in lower interest rates and can help borrowers get out of debt faster. And refinancing is simple.

How does student loan refinancing work?

You will have to work with a bank or student loan refinancing company to refinance your loan. The hardest part of the process is getting qualified. You will need to be earning a decent salary and have a pretty good credit score. If you are financially stable and can pass a credit check performed by the lender, then you will be ready to refinance your loans. 

You will need to supply the lender with a list of all the student loans that you want to be refinanced. The new lender will then contact the existing lenders of the loans, collect payoff quotes, and issue payments. They will pay the loans in full, and the borrower will be left with a new loan at a lower interest rate. 

Finding a lender

If you plan to refinance, be sure to shop around. Don’t just jump for the first lender who is willing to refinance your loans. Look for low-interest rates and a lender who is easy to work with. The best way to do this without causing a lot of damage to your credit score is to compile a list of lenders that you are interested in and submit your applications to all of them at one time. 

Also, keep in mind when considering refinancing your loans that federal loans have some perks that private lenders don’t have, including income-based payments and loan forgiveness. And refinancing a loan can not be undone. Once the old loans are paid off, the new one is permanent. 

In closing, if you decide that refinancing your student loans is the best option for you, then the process is not too hard if you are prepared. Remember to research all your options and have a plan in place before you even talk to a new lender. 

StudentLoanify can help you learn more about refinancing and repayment plans. Contact us today to learn more about your options where student loans are concerned.