Can my credit score affect the refinance loan terms?
Yes. Credit scores will be evaluated by lenders to help determine the interest rate and repayment terms of the loan that they are willing to offer. The better the credit score the more likely preferable loan terms.
How do student refinance interest rates differ from existing student loans?
Student refinancing rates can start from around 2% whereas federal loans are about 4-7% and private student loans approximately 9-12%. Consequently replacing your student loan by refinancing it may result in a lower rate and better repayment terms.
Your specific circumstances will be assessed by lenders to decide the terms offered.
Is a cosigner required?
You may require a cosigner when you refinance your student loan if the lender considers your credit score or income too low. A cosigner will insure the lender in the event of loan default.
Do interest rates, repayment terms and eligibility criteria of lenders vary?
Yes. Lenders often offer different interest rates, repayment plans and eligibility terms and so it is a good idea to compare interest rates and terms offered from a range of lenders.
Why should I refinance my student loan?
By refinancing your student loan you are effectively replacing your existing loan(s) with a new loan.
Some of the reasons this may be advantageous are if any of the following apply in respect of a new loan:
- interest rate on existing loans can be reduced
- repayment amounts can be reduced
- loan debt can be paid off sooner
Which student loans can be refinanced?
Typically both federal and private student loans are eligible for refinancing.
What are the repayment periods for a refinance loan?
Many lenders offer 5, 7, 10, 15 and 20 year repayment terms.