Is Student Loan Refinance Right for Me?
Student Choice is committed to providing tools and resources that help college graduates and parents understand student loan refinancing. As part of that commitment, we are offering a free webinar, titled "The Ins and Outs of Student Loan Refinancing and Consolidation," led by our College Access Counselor.
If you are a college graduate currently in repayment, a recent college graduate, or a parent who took out student loans for a child, you don’t want to miss our upcoming webinar. Understanding the ins and outs of student loan refinancing and consolidation will allow you to make a smart borrowing decision and could save you money over time.
Wednesday, March 27, 2019
1:00 or 6:00pm ET
Prior to the webinar, we invite you to review the commonly asked questions and resources below.
What is the difference between refinancing and consolidation?
Refinancing and consolidation are two options for your student loans. Understanding each option will help you make the right decision.
A Direct Consolidation Loan from the federal government allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment for your federal student loans at one interest rate instead of multiple payments. Refinancing your student loans involves working with a private lender like your credit union. This lender will pay off your existing loans (which may include private and federal loans) and combine them through consolidation. You will then make a single loan payment to the new private lender.
What types of student loans do I have?
Keeping track of your student loans isn’t easy, especially if you’ve taken our more than one. Luckily, there’s one place where you can know what you owe in federal student loans - the National Student Loan Data System (NSLDS). Learn more in the video below.
Private student loans may be found by contacting your school’s financial aid office or the original lender. If these options do not work, you may find your private student loans by reviewing your credit report at https://www.annualcreditreport.com/. You may receive one free annual credit report from each the three major credit reporting agencies, Equifax, Experian and TransUnion.
Understanding borrower requirements – will I need a co-signer on a refinance loan?
Generally, lenders may require a borrower to have a 24-month employment history, a required annual income, and three or more years positive credit history. In addition, lenders may have a debt-to-income requirement which means they want to see how much you pay out versus what you have coming in. Having a co-signer may result in a borrower having better terms and interest rates.
If you are looking for options for student loan refinance, or are wondering how much you could potentially save by refinancing, check out our refinance calculator and find a credit union lender near you!
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