4 Tips to Find the Best Student Loan Refinance Companies
Posted On September 8, 2021
Thanks to the rising cost of higher education, borrowing money for college has become accepted as the norm. In fact, about one-third of all American students go into debt to get through college.
However, just because student loan bills have become commonplace doesn’t mean you should accept living with debt for years. You could cut your repayment time significantly by taking advantage of excellent student loan refinance rates.
Here are some important tips for your student loan refinance comparison.
Tip #1: Your Lender Should Give You Options
The best student loan refinance companies work with you and your unique financial situation. If your goal is to crush your college debt fast, then you might decide to take on higher monthly payments. If you’re not in the position to do that yet, you may have refinance options with lower monthly payments.
A student loan refinance company that works with multiple lenders may provide more options. For example, you might be more comfortable choosing a loan with a fixed interest rate that doesn’t change. You can also decide to refinance your loan with a variable interest rate that fluctuates based on a benchmark such as the prime rate.
Tip #2: You Should Be Able to Refinance Again
How often can you refinance student loans? That question depends on your lender. Some lenders have strict rules about how often their customers can refinance while others will let you refinance again with no costs or fees if you still qualify for the loan.
If your credit score goes up or interest rates go down, those are both great times to refinance. Every time you refinance your loan, you could be saving thousands in the long run, depending on the size of your loan.
Your credit score will update at least once a month, but it could change several times per month. The amount of volatility in your credit score depends on how many financial products you use.
Tip #3: Your Credit Score Shouldn’t Be Negatively Impacted
When you’re shopping for student loan refinance rates, you might check with multiple lenders. If each lender does a hard pull of your credit report, your credit score could be in tatters by the time you’re done. Choose a lender that does a soft pull of your credit report so that you can check interest rates without incurring any damage. Your lender should be able to let you know your rates and refinance options with a soft pull the same day you apply.
Tip #4: The Application Process Should Be Easy and Transparent
Your new student loan refinance rates should be easy for you to understand. If a lender can’t explain how much you’ll be paying over the life of your loan, then there’s probably something wrong.
Contrary to popular belief, loans don’t have to be complicated. When you’re doing a student loan refinance comparison, ask for the important numbers. Your future lender should be able to tell you:
- How much interest you will pay over the life of your loan
- How much you could save if you pay off your loan early
- How much you will be charged for late payments
If you are ready to refinance, consider the options at Splash Financial. Splash makes refinancing an easy process and you could save thousands in interest.
If you’re interested in refinancing, click on the button below.
The information provided in this blog post is not intended to provide legal, financial or tax advice. We recommend consulting with a financial adviser before making a major financial decision.