This website has already discussed how numerous student debt borrowers would benefit from refinancing their student loans. Indeed, refinancing can lessen the amount of interest a borrower pays on their debt, and could lower one’s monthly student loan payment. Although some people might not benefit from refinancing their student loans, everyone should do their research on student loan refinancing companies due to these benefits.
However, it can be difficult to select the best student loan refinancing company. Indeed, there are numerous student loan refinancing partners out there, and I am sure that everyone has seen a variety of advertisements for various companies that specialize in student loan refinancing. However, there are several things that you should keep in mind in order to select the best student loan refinancing company.
One of the most important factors to consider when evaluating student loan refinancing companies is what interest rate you are offered. Of course, it only makes sense to refinance student loans if the interest rate offered by a refinancing company is lower than the interest rate you are currently paying on your student loans. However, different student loan refinancing companies offer a wide range of interest rates to borrowers.
Interest rates can vary greatly depending on the background of the borrower. If you have a solid credit score, good employment, and have never defaulted on debt before, you could be offered an interest rate around three or four percent or even lower in some cases. However, if you have bad credit, an inconsistent employment history, or other issues, you might not be able to get an interest rate below five percent.
Because of the variety of interest rates offered by student loan refinancing companies, it is important to research multiple partners. Do not simply refinance your student loans with the first company that gives you an offer, since you may be able to secure a better interest rate elsewhere. It is difficult to refinance student debt once it has already been refinanced, so it is important that you make the right decision when first refinancing student loans.
Another important thing to consider when evaluating student loan refinancing companies is whether you will receive a cash incentive for refinancing your student loans. Many student loan refinancing companies will pay you hundreds of dollars if you choose to refinance your student loans with them. Some companies place conditions on cash incentives and will only provide such bonuses if the amount of the student debt to be refinanced meets a certain threshold or if the borrower has a particularly good credit history.
Due to the availability of cash incentives, it usually does not make sense to refinance your student loans if you will receive nothing up front. Since many refinancing companies offer these bonuses, it makes sense to refinance with a company that provides this benefit. Like with looking for companies with the lowest interest rates, ensuring you get the best cash incentive requires you to do research, and not settle on the first student loan refinancing company to which you apply.
Another thing to consider when selecting student loan refinancing companies is whether your friends have positive or negative experiences with a particular refinancing company. I personally have a number of friends who have refinanced their student loans with a variety of student loan refinancing companies. They have provided me with valuable insights about the customer service, responsiveness, and other attributes of many student loan refinancing companies. I am sure that many readers also have friends who have refinanced their student loans and can also convey useful advice on a variety of student loan refinancing companies.
Of course, the interest rates and cash incentives provided by student loan refinancing companies are major factors in determining if a given company is right for you. However, there is much more to selecting a refinancing partner than simply the terms that a refinancing company will offer you. Even after refinancing your student loans, you will likely be paying off your student debt for years to come. As such, it is important to pick a partner that is invested in you beyond simply the interest rate they provide or the cash incentive they might pay.
As previously mentioned on this website, Student Debt Diaries, has partnered with Splash Financial a leading student loan refinancing company. If you use the link above to refinance your student loans, you may receive a generous welcome bonus, and to be honest, we may receive an incentive we can use to make updates to Student Debt Diaries! Of course, everyone refinancing their student loans should do their research, and you should consider refinancing companies other than Splash. Nevertheless, we recommend that Splash definitely be part of your search for a student loan refinancing company.
In the end, everyone considering student loan refinancing companies should do their research on a number of different partners. The main things that should be evaluated are the interest rates that are offered and if any cash incentives are available. However, it is also important to work with a student loan refinancing partner that is right for you regardless of the numbers. As a result, advice from friends, family, and others who have already refinanced their student loans can be critical when selecting the best student loan refinancing company.