The Best Refinance Lenders to Pay Off Student Loans Fast

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Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The best refinance to quickly pay off your student loans is to shop around and compare rates from different lenders. (Shutterstock)

Refinance your student loans can help you repay them faster if you choose a shorter repayment term. Paying off your student loans as quickly as possible could help you pay less interest over the life of the loan and free up money that you can use to pursue other financial goals, like buying a home.

Here’s how refinancing can help you pay off your student loan debt sooner, which student loan refinancing lenders may be best for you, and how to refinance.

Visit Credible for learn more about refinancing student loans and compare rates from several private student lenders.

How refinancing can pay off student loan debt sooner

Refinancing a student loan involves taking out a new private student loan and using the funds to pay off the balance of your original private and federal student loans. This leaves you with just one student loan to repay. It could help you pay off debt faster and save thousands of dollars if you get a shorter repayment period, a lower interest rate, or both.

You may have heard of student loan consolidation, but it’s a little different from refinancing. With consolidation, you can combine multiple federal loans into one direct consolidation loan. Your interest rate will be a weighted average of what you were paying on your existing loans, so it cannot be lower. You cannot consolidate private loans into a direct consolidation loan.

Best Student Loan Refinance Lenders

If you want to refinance your student loans, these 11 credible partner lenders are a good place to start:

Advantage of student loans

  • Type of loan: Fixed
  • Repayment Terms : 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

Brazos

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 7, 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

Citizens

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 7, 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

College Avenue

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 7, 10, 12 or 15 years old
  • Eligible degrees: Undergraduate and graduate

EDvestinU

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

ELFI

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 7, 10, 12, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

INVESTED

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

ISL Education Loan

  • Type of loan: Fixed
  • Repayment Terms : 5, 7, 10, 15 or 20 years
  • Eligible degrees: Undergraduate and graduate

MEFA

  • Type of loan: Fixed
  • Repayment Terms : 7, 10 or 15 years
  • Eligible degrees: Undergraduate and graduate

PenFed

  • Type of loan: Fixed
  • Repayment Terms : 5, 8, 12 or 15 years old
  • Eligible degrees: Undergraduate and graduate

RISLA

  • Type of loan: Fixed
  • Repayment Terms : 5, 10 or 15 years
  • Eligible degrees: Undergraduate and graduate

Other Student Loan Refinance Lenders to Consider

The following two lenders are not Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they may also be worth considering if you want to refinance your student loans.

Federal Naval Credit Union

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 10 or 15 years
  • Eligible degrees: Undergraduate and graduate

NCP Bank

  • Type of loan: Fixed and variable
  • Repayment Terms : 5, 7 or 15 years
  • Eligible degrees: Undergraduate and graduate

Methodology

Credible rated private student lenders in 10 different categories to determine the best lenders for student loan refinancing. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and co-signer release options.

How to Compare Student Loan Refinance Lenders

Whether you were trying to pay off your student loans in 10 years or if you’re looking for the best way to pay off your medical school loans as quickly as possible, shopping around is essential. When comparing options, consider the following:

  • Interest rate – You should try to find a loan with a lower interest rate, but you should also determine if it is fixed or variable.
  • APR – The APR reflects the fees and other charges associated with the refinance loan, so it is a more accurate picture of the cost of a loan rather than just looking at the interest rate.
  • Repayment period – Shorter repayment terms lead to higher monthly payments, but they will help you pay off your loans sooner and save on interest.
  • Costs – It is important to identify any potential fees associated with the loan, including origination fees or late fees.
  • Discounts — You may be eligible for discounts based on your income, occupation, or for setting up automatic payments.
  • Other benefits – You may be eligible for additional benefits, depending on the lender.

You can easily compare prequalified rates from several lenders using Credible.

How to Refinance Student Loans

Follow these steps to refinance your student loans:

  1. Research lenders. Since not all lenders offer the same terms, you’ll want to do your research and compare them.
  2. Get prequalified. If you meet the lenders eligibility criteria, you’ll see the prequalified rates and loan products you qualify for.
  3. Choose a refinance loan. Rates and terms differ from one lender to another, which is why it’s important to ask for rates from multiple lenders.
  4. Apply. Fill out a form and apply. The lender will do a thorough credit check (which affects your credit score), check your documents, analyze your debt ratio, etc.
  5. Continue to make payments on your existing loans. Continue to make payments on your current loans until your new loan application is approved and you get confirmation that your existing balances have been paid off.

Should you refinance your student loans?

You may be consider refinancing as a means of pay off student loans quickly, although it’s not the best decision for everyone. Individual circumstances, such as your income and the amount of your debt, determine whether refinancing makes sense in your unique financial situation.

Refinancing may be a smart move if your credit has improved since you took out your original loans. A higher credit score can help you qualify for a lower interest rate. If you don’t see a significant drop in interest rates, refinancing might not make sense.

On the other hand, if you have federal student loans, refinancing them into a private student loan will mean that you lose eligibility for federal relief, benefits, or protections – including eligibility for student loan debt relief plan just announced by the Biden-Harris administration.

To start refinancing your student loans, visit Credible and compare prequalified rates from several lenders.

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