Top Reasons To Refinance Your Student Loans

Nowadays, student loans are a huge business. This explains why lenders and startups are helping you convert your private or federal student loans into a new loan with lower interest rate. In fact, their desire for your loans is great news for you. This is because, with affordable interest rates, you can easily save thousands of dollars. Moreover, you will find it easy to repay your student debt without a lot of hassle. However, is refinancing a good idea for you? This is where a student loan refinancing company comes to your rescue. The following are some reasons to refinance your student loans:

Reasons to refinance your student loans

Low interest rates

If you have federal PLUS loan or a private studhnjm2ed6t52et62u82i29ent loan, you will be paying high interest rates. Federal PlUS funds go for rates between 7.9% to 8.5%. Even if you consolidate them under federal loan program, you will not change their interest rates. In fact, only a refinance loan does that. On the other hand, private educations loans come at rates between 8% and 10%. If you are after good interest rates, refinancing can save thousands of dollars for you thanks to low interest rates.

Good credit

Is it possible to get low interest rates? Nowadays, there are several financial products out on the market that you qualify with your current credit rating. However, you may fail to be eligible for a refinance loan if you have applied for bankruptcy, late on bills, or you are a loan defaulter. The interest rate you get may be dependent on your credit rating. Fortunately, not all programs provide rates based on credit score. Thus, the higher the credit score, the lower your interest rate.

Need to simplify your life

The fact that education is expensive makes students seek funds from multiple lenjmkmb2w5er25etd62y27u28ders. Thus, refinancing helps reduce the number of bills that you are required to pay. It is advisable to carry out extensive research before combining your debt. When you have several student loan servicers, you may be confused as far as sending documents and payment dates are considered. Thus, refinancing decreases chances of getting confused. When you have a single servicer, you become confident in tracking, understanding, and organizing what is going on with loans so that you can repay them faster.

Get better customer support

You may find it difficult to reach your lenders because their representatives are rude to you. Replacing them is possible. This is what refinancing allows you to do. Research new lenders and find best customer service to help you.

Top Student Loan Refinancing Companies Available

Student loan refinancing has been a major concern for a majority of students today, particularly those who are graduating from colleges. To refinance a student loan means paying off your old loan, and creating a new debt at an affordable interest rate. Today, students can consolidate private and federal loans and refinance them together. Numerous types of student loan refinancing exist on the market today providing refinancing facilities with the rate of interest of 1.9 percent and the repayment period ranging from five years to twenty-five years.

You can consolidate and refinance PLUS loans, Perkins, Stafford, and almost all types of student loans. Here are the top companies available on the market to offer the best refinancing packages for you:

Top student loan refinancing companies


This refinancing institution began in 2011 as a Social Finance. Currently, it is one the best student loan consolidation and refinancing organization helping numerous students with education debts to reduce the total cost of their loans as well as their monthly repayment. It provides rates of interest as low as 2.13 percent and 3.5 percent for variable and fixed rates respectively.

SoFi offers between five and twenty years repayment period giving you a flexible way of repaying your loan. Moreover, it has some benefits to its members including free membership, resume review, interview coaching, career support, and unemployment protection among others. Since its inception, it has helped students refinance over six billion US dollars while saving over $14,000 in the process.

Citizen Bank

The second best refinancing facility is the Citizen Bank, which has over 1,100 branches to assist students with their consolidation and refinancing process. It hnjm2w3ed5t2e6dy27u392has created a division known as the education finance dedicated to handling the education refinance loan for students willing to manage their loan repayment better. It offers 2.17 percent and 4.74 percent for variable and fixed interest rates respectively. It has helped their student customers to save over $1,764 every year through their refinancing platform. It also provides between five and twenty years repayment period for both private and federal loans.


This is one of top student loan refinancing companies. Earnest is growing rapidly to offer competitive products to students and other customers. It has rates of interest as low as 1.9 percent, which has helped every qualified student to save over $17,936 so far through their model. This average saving is the highest so far recorded on the market. Earnest’s repayment period ranges from five, ten, and fifteen, to twenty years. It also allows parents to refinance loans for their children’s college education. The process of approval only takes a few minutes.