Frequently Asked Questions
Student Loan Refinancing
Yes! Splash offers refinancing options for college graduates with a four-year degree from a Title IV accredited institution or with an associate degree in an eligible field.
If you have a job loss or are going through an economic hardship, please get in touch with the lender or servicer of your loan as soon as possible to learn about your options.
Defaulting on a loan is a very serious matter which could have an adverse effect on your personal credit score. Further, it is difficult to cancel the obligation to repay an education loan in a bankruptcy. If you are about to miss a loan payment, contact your lender or loan servicer immediately to work out a repayment schedule.
Splash does not have lending partners that refinance student loans when a degree is not obtained. Splash lending partners require a minimum of an Associate’s degree.
In 2022 the economic conditions have changed and the rates have been rising. However, rates are always changing. Checking your rate through our quick, online rate check is the best way to tell whether or not you are eligible for a lower rate.
At Splash Financial, of course! Our mission is to make people more powerful than their debt. When you refinance with us, you gain access to the best lenders, rates, and customer support. Our seamless online experience takes the hassle out of refinancing. With no application fees, no origination fees, and no prepayment penalties – refinancing with Splash is a no-brainer! Learn how we can help refinance your student loans today.
Just because you can refinance your student loans multiple times does not mean you should. Refinancing multiple times within a short period of time could have a negative impact on your credit score.
You can refinance your student loans as often as you’d like! We recommend refinancing if your credit improves significantly or if interest rates go down. These are signs that you could receive a loan with lower interest rates, which could help you save thousands on your student loans.2
Many private lenders offer the ability to refinance your student loans. This will allow you to transition from your old, high-interest rate loan(s) to one new loan with a lower interest rate. Our network of trusted banks, credit unions and other lenders allows you to have access to the best possible rates and monthly payment options for your situation.
Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal student loans carry special benefits. If you refinance a federal student loan with Splash Financial, you will no longer be eligible for those benefits. If you’re interested in refinancing your federal student loans, the first step is to check your rate with Splash! This will give you an understanding of the new interest rates and monthly payment options available to you by refinancing through our network of banks, credit unions and other lenders. Plus, checking your rate with Splash does not impact your credit score3. If refinancing makes sense for your situation, you can complete the rest of your online application and start saving.
Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal student loans carry special benefits. If you refinance a federal student loan with Splash Financial, you will no longer be eligible for those benefits.Yes! Through Splash, you can refinance federal, private, and Parent PLUS student loans.
Yes! If your credit is good or has recently improved, or if interest rates have dropped, it will likely benefit you to refinance your loans.
Deciding if now is the best time to refinance your student loans depends on a number of personal factors including your personal financial situation, your current interest rate and monthly payment, trends in the economy, and the remaining balance on your student loan.
Refinancing student loans is a great opportunity to reduce your student debt. However, it’s not for everyone.
Refinancing can be a great option for you if you either have a private student loan or if you are in the workforce, have graduated with an associate degree or higher in an eligible field, and have high-interest rates on current outstanding student loans. You may save thousands and potentially shave years off your loan term, helping you get out of student loan debt faster.
Although there are many benefits to refinancing your loans, it may not be for everyone. There are specific benefits of a federal student loan that a private refinance/consolidation loan may not offer:
- Loan forgiveness: If you qualify for student loan forgiveness and you refinance to a private student loan, your refinanced loan will no longer be eligible. Federal student loan forgiveness programs, such as Public Student Loan Forgiveness (PSLF), are only applicable on federal loans.
- Deferment: Refinancing can restrict the options you have to postpone your payments in the event that you lose your job or fall into considered financial hardship. Private lenders’ deferment policies vary.
- Income-Driven Repayment Plans (IDR): Federal loan holders can apply for an IDR plan that reduces their minimum monthly payment and makes it a percentage of their discretionary income. When you refinance, you will be ineligible for any IDR plan.
- COVID-19: Temporary interest rate of 0% until 05/01/2022, public service loan forgiveness, and economic hardship programs, fee waivers and rebates on the principal.
Refinancing student loans is meant to ease the burden and stress of paying back a single loan or multiple loans. When someone refinances their student loan(s), they are obtaining a new loan that pays off and replaces one or more student loans and that has terms that work better for their current financial situation, payment preferences and financial goals. By refinancing through Splash Financial, you may qualify for a lower interest rate or lower monthly payment on your student loans.
Your monthly student loan payment will depend on a number of different factors, and it is entirely unique based on your financial situation. Below are a few factors that can impact your monthly payment:
- Total loan amount
- Interest rate
- Type of interest rate
- Loan term (how long it will take to repay your loan amount)
Because your student loan payment is often small compared to the overall loan amount, we recommend using a loan payment calculator to help you understand how decreasing or increasing your payment amount may affect what you pay over the life of your loan.
There are several ways to get out of student loan debt. The most straight-forward method is to continue paying the balance of your student loan until it’s been paid in full. However, you can also explore alternative ways to decrease your monthly payment or pay your loan off in less time by refinancing your student loans. Refinancing allows you to renegotiate the terms of your loan to better suit your current situation (this is where Splash can help!). You can also visit the official Federal Student Aid website to learn if you qualify for student loan forgiveness.
If you are eligible for student loan forgiveness, it releases you from the need to repay part or all of your federal loan, but it depends on very specific terms of forgiveness.
Interest is the cost you pay to borrow money and pay it back to the lender over time. Interest is calculated as a percent that the lender applies to your principal loan amount. Interest adds to the total cost of your loan. There are two types of interest rates that could be attached to your student loan: fixed interest and variable interest.
Fixed Interest Rate
Fixed interest rates remain the same throughout the life of your student loan. Fixed interest rates may be higher than variable interest rates at the time of applying for your loan, but fixed rates are generally considered to be the safer option because your interest rate will not change unless you choose to refinance. All federal student loan interest rates are fixed. Private student loan lenders typically offer both fixed and variable interest rates.
Variable Interest Rate
Variable interest rates are based on an index that is a value quoted in the financial markets. Usually, the lender adds an additional amount, called a margin, to the index to calculate your variable rate. The index, and therefore, the variable interest rate may change throughout the life of a student loan. This type of rate may increase or decrease due to changes in the economic environment. This makes variable interest rates the more enticing and risky option. Private student loan lenders typically offer both fixed and variable rates.
If your parent obtained a Parent PLUS loan to pay for your education, your parent is required to make payments on that loan. The process of paying back a Parent PLUS loan is very similar to that of standard student loans, as most are payable within your lender’s portal.
To learn more about Parent PLUS loan interest rates and repayment guidelines, visit the official Federal Student Aid website.
After you graduate, the process of paying your balance will become quite routine. Most lenders have a portal that will allow you to log in each month and pay a portion of your student loan balance, at or above your minimum payment. You can often set up automatic payments that will be deducted from a checking or savings account on a monthly basis. And if you want to make additional one-off payments, you can also make lump sum payments to decrease your student loan balance more quickly.
You have a lot of control over how you pay off your student loans. For those wanting to pay off their student loans quickly, many lenders offer plans with a higher monthly payment and lower interest rates. Conversely, if you’re looking to keep your monthly costs low, you may choose a loan with a lower monthly payment and higher interest rate, paid over a longer period of time. In both cases, student loan refinancing may help you to reduce your interest rate and adjust the length of time left on your loan based on your most-current needs and financial goals.
Federal Student Loans
Whether you’re an undergraduate student, a graduate or professional student, or a parent, you may be eligible to borrow student loans from the federal government. If you are considering a federal student loan, visit the official Federal Student Aid website to review their student loan resources and guidelines.
Private Student Loans
There are many private loan options for borrowers to explore. You can narrow down your options by first deciding if you’re more comfortable with a fixed rate or a variable rate, considering the pros and cons of each. You’ll also want to have an idea of your credit score to know if you qualify for the lender you’re interested in. Resources like NerdWallet allow you to view a variety of private student loan lenders side-by-side and compare their benefits before you apply.
A student loan is a type of loan offered by different entities, including the federal government, private lenders, banks and other financial institutions, that helps students pay for the cost of post-secondary education. Student loans are designed to cover costs associated with higher education, including tuition, living expenses, books and supplies. As with other types of financial loans, the principal is the amount borrowed, while the interest is the cost over time for borrowing the money.