Updated: June 9th, 2015
Looking to refinance student loans? Want to consolidate student loans?
Today, the answer to that question is probably yes! 7 out of 10 college graduates are now graduating with some form of student loan debt. With an average loan balance $30,000, student loans are a big part of the average college graduate's life. Student loans are a powerful tool for many students who could otherwise not afford a higher education. That being said, not all student loans are created equal. Interest rates on student loans usually vary by loan type, rate type, and credit worthiness. If you find yourself paying 8% to 10% in student loan interest each year, you are not alone.
Over the last couple years student loan refinancing has become a hot topic in the United States. As it sounds, student loan refinancing allows student loan borrower to refinance their student loans at a potentially lower interest rate. Student loan refinance rates can be as low as 1.90%, refinancing with these lower rates can save some borrowers upwards of $10,000 over the life of their loan. At LendEDU, we help borrowers compare all of the top student loan refinance companies in one place. We put together this guide to help you get information on all of the top student loan refinance lenders without having to jump around multiple websites. We even created a detailed review for each lender listed below! Please note, all of the lenders listed below are private student loan lenders. In general, you can refinance both federal and private student loans together.
Before you start an application, you should know that most lenders require a minimum FICO credit score of 660, 40% maximum monthly Debt-to-income, and $24,000 in yearly gross income. If the requirements above sound good, we think that you are a great applicant for student loan refinancing and consolidation. Each lender has its own specific underwriting criteria, so you may have a higher chance of approval at certain lenders. Read the detail lender reviews for more information regarding lender approval.
Lender | Rates (APR) | Loan Types | Terms | Eligible Loans | Eligible Degrees | |
|---|---|---|---|---|---|---|
1.92% - 6.99% | Variable & Fixed | 5, 10, 15, 20 | Private & Federal | Undergrad & Graduate | ||
1.92% - 6.25% | Variable & Fixed | 5, 10, 15 | Private & Federal | Undergrad & Graduate | ||
3.29% - 8.64% | Variable & Fixed | 5, 10, 15, 20, 25 | Private & Federal | Undergrad & Graduate | ||
1.92% - 6.25% | Variable & Fixed | 5, 10, 15, 20 | Private & Federal | Undergrad & Graduate | ||
1.92% - 7.24% | Variable, Mixed, & Fixed | 5, 10, 15, 20 | Private & Federal | Graduate |
1) SoFi is the #1 Lender to Refinance Student Loans
Student loan refinance is a hot topic these days. Today, there are a number of new student loan consolidation companies looking to help borrowers improve their financial health. Our favorite, SoFi, aka Social Finance, has quickly positioned itself as the top student loan refinance lender on the market. SoFi was founded by a group of Stanford business students who wanted to help their peers escape from student loan debt with lower interest rates. The program launched at Stanford in 2011 and has quickly grown. Today, SoFi has expanded and now helps student loan borrowers nationwide.
The Basics
SoFi offers student loan borrowers student loan refinance and consolidation services. Borrowers can select the loans they would like refinanced or consolidated, then SoFi pays them off, and then the borrowers pays off a new loan issued from SoFi. SoFi aims to help student loan borrowers lower their monthly payments and get lower interest rate loans.
SoFi offers borrowers a number of great options. SoFi offers both variable and fixed interest rate loans. Borrowers can select from 5, 10, 15, and 20 year repayment plans. The fixed rate loans start at 3.5% and have a maximum possible rate of 6.99%. The variable rate loans are presently as low as 1.92% to 4.92%, and they are tied to the LIBOR rate. If interest rates do happen to rise, variable interest rates will be capped at 8.95%. Currently, 1.92% is the lowest possible student loan refinance rate on the market. There are no penalties for paying off your loan early. Borrowers are expected to make payments on a monthly basis. The company offers an interest rate discount of 25 basis points if you sign up for auto-pay. Signing up for auto-pay is easy and SoFis customer service support staff can help you through the process if you run into any trouble.
SoFi Student Loan Consolidation Benefits
SoFi doesnt charge origination fees! Origination fees are fees charged to borrowers for taking out a loan. These extra costs are usually added to the principal of the loan. SoFi has zero prepayment penalties! At any time you can pay off your loans early. Whether you are looking to pay $100 extra each month, or are using that year end bonus to pay off your loans, you can be sure that you wont be charged any fees for paying early.
SoFi makes refinancing student loans simple. The company claims that it only takes 15 minutes to start saving.
SoFi has a unique and proprietary approach to underwriting. SoFi takes a number of dimensions into consideration including alma mater, professional success, and income.
SoFi has awesome customer service! If you run into any problems along the way give them a call. Unlike the big old banks, SoFi understands that customer service is an important piece of the equation.
To Consider
SoFi is looking for well educated professionals with good income. Like most other student loan refinance lenders, you should have good credit and low debt loads. According to American Banker, SoFi focuses primarily on prime and super-prime borrowers, with an average borrower FICO score of 780 and income of approximately $150,000.
Bottom Line
The SoFi student loan refinance and consolidation program is a great option for people who want:
At LendEDU, we give SoFi our stamp of approval. To get started you can start the application at SoFi!
- Student loan refinance & consolidation for both federal and private student loans
- Must have completed an eligible undergraduate or graduate degree program
- Undergraduate and graduate student loans are both eligible
- 5, 10, 15, 20 year repayment terms
- 1.90% APR to 5.17% APR (with autopay) variable rates, capped at 8.95% to 9.95% APR
- 3.50% APR to 7.24% APR (with autopay) fixed rates
- Auto-pay discount
- Strong credit score, salary, and debt-to-income requirements
- Zero prepayment penalties
- Zero origination fees
- Unemployment protection loan payments are temporarily suspended
- Career support for SoFi members
- Entrepreneur program
2) LendKey Student Loan Refinance and Consolidation
LendKey (formerly cuStudentLoans) Full Review
Finding the best student loan refinance or student loan consolidation company can be tough. Each lender has its own set of criteria, interest rates, and term lengths. Moreover, each lender brings something unique for borrowers. Cosigner requirements, credit score minimums, and customer service can vary at each lender. At LendEDU we work with only the top student loan refinance and student loan consolidation companies. One company trying to help student loan borrowers is cuStudentLoans! At the end of the day cuStudentLoans brings local credit unions to the table for borrowers. The result, great customer service and interest rate options for borrowers.
The Basics
cuStudent Loans is more than just a single company. CU Student Loans is a collection of not-for-profit credit unions from across the U.S.A. The participating credit unions work together to compete against major lenders. The result. Great interest rates are available for borrowers. And, with over 175 credit unions participating in the program you can be sure that there is an option available for you! There are no geographical requirements!
The lowest interest rate that CU Student Loans currently offers is 2.76% at a variable rate. The highest interest rate offered is 7.76%. They also require a yearly income in excess of $24,000. Today, the company allows borrowers to refinance and consolidate both federal and private student loans. This is great for borrowers who are stuck paying high interest rates on their old federal and private student loans.
CU Student Loans charges NO origination fees which can help borrowers save money! Moreover, cosigner release is an option after 12 months.
As far as credit criteria goes, CU Student Loans requires borrowers to have a good credit score and an average debt-to-income. CU Student Loans has good approval ratings, so definitely apply, even if you are on the fence. We found that many of our users were approved at CU Student Loans. CU Student Loans evaluates each borrower on a case-by-case basis.
CU Student Loans offers a term length of 15 years. There is no penalty for paying off your loan early, and borrowers can have up to four years of interest only payments. Borrowers are expected to make payments on a monthly basis. The company offers an interest rate discount of 25 basis points if you sign up for auto-pay.
The first part of the application should only take a few minutes to complete. If approved for a loan, applicants are expected to join the local credit union that will be providing the loan. Credit unions usually require a small deposit for membership. In most cases borrowers will need to deposit $1 to $20 to gain access to a credit union. A $5 deposit is a small price to pay for great customer service and interest rates. Dont worry, the CU Student Loans representatives can help you if you run into any trouble along the way!
LendKey Student Loan Consolidation Benefits
cuStudent Loans offers borrowers a personal experience. Borrowers will receive a friendly credit union experience, vs. typical treatment from a big bank. Credit unions operate for their members(you!) and only the members. All earnings are redistributed back to the members so you can be sure that every lender on the CU Student Loans platform has your back. The company doesnt have any shareholders or investors so they can focus all of their attention on you!
CU Student Loans has zero origination fees! Origination fees are fees charged to borrowers for taking out a loan. These extra costs are usually added to the principal of the loan. But with CU Student Loans you can avoid these costs all together. By not having an origination fees, CU student loans makes it easy to compare the value of a consolidated loans against the current loans that the borrower already has.
CU Student Loans has zero prepayment penalties! For people working to pay off their student loans quickly, zero prepayment penalties are important. Some lenders charge borrowers when they pay off their loans early. CU Student Loans puts the borrowers first and will never charge you if you pay off your loans early; so if you come into that year end bonus, you dont need to fear paying off your loans early.
CU Student Loans has cosigner release available! Meaning, cosigners can be released from the loan obligation after 12 months of on-time payments! This is a big deal. Not many lenders even offer cosigner release as an option to borrowers. Again, CU Student Loans puts it borrowers first, and not corporate profits! This one year release is by far the shortest release on the market. With cosigner release you can positively influence your cosigners credit score too.
To Consider
The major disadvantage is that CU Student Loans is a newcomer in the student loan refinance market. As a result, the company has limited offerings when it comes to term length. The company only offers 15 year term lengths. That being said, you can choose to pay back your loan funds without a prepayment penalty if you would like. The other disadvantage is that cuStudentLoans only offers variable interest rates. This could be an issue for some borrowers looking to lock in low interest rates today. In the event of rising interest rates, you could see variable rates rise. However, over the last few years interest rates have remained very low!
Bottom Line
The CU Student Loans student loan refinance and consolidation program is a great option for people who want:
Low interest rate options
- Cosigner release after 12 months of on-time payments
- A personal approach to borrowing
- Great customer service
- A credit union experience
At LendEDU, we give cuStudent Loans our stamp of approval. To get started you can start the application at CUStudentLoans!
- Refinancing and consolidation of private and federal student loans
- Must have completed an eligible undergraduate or graduate degree program
- Undergraduate and graduate student loans are eligible
- 2.92% to 7.83% (with autopay) variable rates
- Interest only repayment option
- 15 year repayment term
- No origination fees or prepayment penalties
- Medium credit score, salary, and debt-to-income requirements
- Credit Union Membership Required, they will pair you with a participating credit union
- Not-for-profit lenders
- Excellent customer service
- Cosigner release available, if, the primary borrower is eligible even without a cosigner.
3) U-fi Student Loan Refinance
Over the last year, a number of new student loan consolidation lenders have entered the market. One of the newest players in the industry is a company called U-fi Student Loans. Launched in 2015, U-fi student loans was created to help the more than 40 million Americans struggling with student loan debt. U-fi was formed out of a very interesting partnership between NelNet and Union Bank and Trust Company. While NelNet has been a long time player in the student loan industry, the company hadn't yet made its way into the student loan consolidation market. Through NelNets partnership with Union Bank, NelNet launched U-fi Student Loan. U-fi offers both private student loans, and refinanced student loans.
The Basics
U-Fi offers borrowers plenty of great student loan refinance offerings. First off, borrowers can refinance both federal and private student loans through U-fi. Borrowers have the ability to select either a variable of fixed rate. Furthermore, borrowers may have the option to select term lengths from 5 to 25 years. Currently, U-fi allows borrowers to refinance with 5 year, 10 year, 15 year, 20 year, and 25 year term lengths. U-fi offers more term length options than any other student loan consolidation lender!
U-fi offers variable rates from 3.29% APR to 6.63% APR. Fixed interest rates start at 4.15% APR and go up to 8.64% APR on the high end of the range. To qualify for the lowest stated rates, you will need to be a very qualified applicant and most likely have a cosigner. Most applicants at LendEDU fall somewhere in the middle of the lender stated ranges. If you elect to refinance with a variable rate, know that your rate will adjust with the One-Month LIBOR index.
If you refinance with U-fi, you will be expected to make monthly principal and interest payments. If you elect to make electronic payments, you will save 0.25% with U-fis rate reduction benefit.
The minimum amount eligible for refinancing is $5,000. Depending on your degree type you may have refinancing loan limits. If you have an undergraduate degree, you can refinance up to $125,000. If you have a Graduate or Doctoral degree, you can refinance up to $150,000. If you have an MBA or Graduate Law degree, you can refinance up to $175,000. If you have a Graduate Health Professions degree, you can refinance up to $225,000. The loan limits stated above are also aggregate student loan limits for U-fi. By aggregate maximum student loan debt, we mean all student loan debt, or other types of consumer debt used for post-secondary education expenses. Also, if you have a graduate degree your rates may be lower than if you just have an undergraduate degree.
To be eligible for U-fi student loan refinance, you must be a U.S. citizen or permanent resident alien with a valid U.S. Social Security number, and be the legal age of majority in your permanent state/territory of residency, which is 18 years of age in every state /U.S. territory except Alabama (19 years old), Mississippi (21 years old), and Puerto Rico (21 years old). If you havent yet reached the age of majority, you must be at least 17 years old and apply with a cosigner.
U-fi Student Loan Consolidation Benefits
U-fi Student Loan was created to help student loan borrowers better manage their student loan debt. U-fi offers some incredible student loan refinance benefits that you need to check out. With all the new student loan lenders on the market, borrower benefits has become a huge selling point for lenders.
Our favorite benefit offered by U-fi is their cash back reward for on-time payments. U-fi created a great program where borrowers can receive 1.5% cash back on their student loan loan balance refinance with U-fi. To qualify for the cash back bonus, all you need to do is refinance your student loans with U-fi, then make 12 separate, on-time, monthly principal and interest payments. To calculate your cash back reward, all you need to do is multiply 1.50% by the principal balance of the loan at the time the award is issued. For example, if you have $30,000 outstanding at the time you qualify for the cash back reward, you will receive $450. And guess what.. you can spend the reward on whatever you would like. Or, you could pay off your student loans like a driven borrower. Please note, your total cashback reward cannot exceed $500.
Like most student loan refinance lenders, U-fi does not charge application, origination, disbursement, or prepayment fees. What you see is what you pay!
As you probably know, having a cosigner can greatly improve your chances of getting approved for student loan refinance. At LendEDU we always recommend that our borrowers apply with a cosigner if possible. Applying with a cosigner can dramatically lower your interest rate. U-fi understands that cosigners may not want to commit themselves to a student loan for a long period of time. So U-fi created a cosigner release benefit for borrowers. U-fi is the second student loan refinance lender to offer cosigner release. To qualify for U-fi cosigner release, you must make 24 consecutive, on-time payments of principal and interest. Moreover, at the time of the cosigner release request, you must meet certain credit criteria milestones laid forth by U-fi. For more information we encourage you to call them directly.
To Consider
While U-fi Student Loan offers some incredible and unique benefits to student loan refinance borrowers, we do need to consider a few items.
The lowest rates offered by U-fi are significantly above other student loan refinance lenders. Many student loan refinance lenders offer rates below 2%, U-fis rates start above 3%. If you are extremely qualified (+830 FICO) and have a cosigner, you should consider applying to other lenders as well.
U-fis aggregate loan limits may stop some borrowers from applying. If your aggregate student loan balance is over U-fis loan limits you are not eligible for their program.
Lastly, U-fi is a new student loan refinance lender. We arent quite sure how well their customer service and technology stacks up against the competition. If youve refinance with U-fi, we would love to hear from you to get your feedback. More on this to come!
Bottom Line
U-fi Student Loan Refinance is an excellent option for creditworthy borrowers. U-fi is a great option for borrowers who want:
- The most term length options
- Variable and fixed interest rate options
At LendEDU, we give U-fi Student Loan our stamp of approval. To get started, please click the learn more button below!
U-fi Student Loan Disclaimer
- Student loan refinance for graduate and undergraduate degrees
- Variable rates from 3.29% APR to 6.63% APR
- Fixed rates from 4.15% APR to 8.64% APR
- 5, 10, 15, 20, 25 year term length options
- Cosigner release after 24 months
- 1.50% Cash Back Reward
- 0.25% discount with electronic payment
- Must be a U.S. Citizen or permanent resident
- No origination, disbursement, pre-payment, or application fees
U-fi Disclosures Variable interest rate loans are based on the One-Month LIBOR plus a margin, and may increase over the term of your loan. Changes in your rate may cause your monthly payment to increase or decrease. All rates shown include a .25% interest rate reduction for ACH payments. The figures shown above are estimates only. Your actual rate and monthly payment amount may be different, and will depend on your credit qualification and the actual amount for which you are approved. Potential cash back rewards with 12 on-time payments. Cash back reward cannot exceed $500 per borrower in any one calendar year. No application, origination, disbursement, or pre-payment fees. Further details on loan terms and borrower benefits can be found on the loan application and credit agreement.
4) Darien Rowayton Bank Student Loan Refinance
Darien Rowayton Bank Full Review
With so many new student loan lenders now offering student loan refinance loans, it is tough to find the best lenders in the industry. Navigating through the array of Google ads can be difficult. It gets even harder when each lender has its own set of criteria, interest rates, and term lengths options available. Moreover, each lenders brings something unique for borrowers. Who is the best? With so many new student loan lenders now offering student loan refinance loans, it is tough to find the best lenders in the industry. Navigating through the array of Google ads can be difficult.
It gets even harder when each lender has its own set of criteria, interest rates, and term lengths options available. Moreover, each lenders brings something unique for borrowers. Who is the best?
At LendEDU we work with only the top student loan refinance and student loan consolidation companies. One company trying to help student loan borrowers is Darien Rowayton Bank, also know as DRB! At the end of the day Darien Rowayton Bank has some of the lowest interest rates available. With rates as low as 1.92%, I bet every student loan borrower can save by refinancing through Darien Rowayton Bank.
The Basics
Based out of Darien, Connecticut, Darien Rowayton Bank is known for its incredibly low rates and tight interest rate ranges. The company offers its customers a number of term lengths with variable and fixed interest rate options.
The lowest interest rate that DBR currently offers is 1.92% at a variable rate. The highest interest rate offered is 6.25%. Today, the company allows borrowers to refinance and consolidate both federal and private student loans together into one new loan. This is great for borrowers who are stuck making payments on multiple loans each month.
Darien Rowayton Bank charges NO origination fees which can help borrowers save money!
As far as credit criteria goes, Darien Rowayton Bank requires borrowers to have an excellent credit profile and good income. DRB evaluates each applicant on an individual basis so it is worth applying even if you are afraid you wont qualify. To improve your chances of approval we suggest you apply with a cosigner.
DRB offers a term length of 5, 10, 15, and 20 years. The company offers both variable and fixed interest rate options. There is no penalty for paying off your loan early. Borrowers are expected to make payments on a monthly basis. The company offers an interest rate discount of 25 basis points if you sign up for auto-pay. To sign up for auto-pay you must have a DRB checking account.
DRB Student Loan Consolidation Benefits
Darien Rowayton Bank offers borrowers eight great options to refinance and consolidation student loans. Out of all the student loans refinance and student loan consolidation lenders on the market, Darien Rowayton Bank offers borrowers the most options. We are sure that every borrower will be able to find an option that meets their financial objectives.
Darien Rowayton Bank has zero origination fees! Origination fees are charged to borrowers for taking out a loan. Usually, origination fees are quoted as a percentage of the loan. These fees are added to the principal of the loan. But with DRB you can avoid these costs all together. By not having an origination fees, DRB makes it easy to compare the value of a consolidated loans against the current loans that the borrower already has.
Darien Rowayton Bank has zero prepayment penalties! For those working to pay off their student loans quickly, zero prepayment penalties are important. That being said, with rates as low as 1.92% paying off your student loans early may not be a primary goal for some borrowers.
To Consider
In general, DRB looks for applicants with very strong incomes and low debt. To be approved by DRB you must have good credit, a well paying job, and be able to keep your debt load low. Having a cosigner can greatly improve you chances of being approved.
Bottom Line
The Darien Rowayton Bank student loan refinance and consolidation program is a great option for people who want:
- To lower their monthly payment
- Lock in low interest rates
- Choose from a variety of term lengths
- Consolidate federal and private student loans
At LendEDU, we give Darien Rowayton Bank our stamp of approval. To get started you can start the application at Darien Rowayton Bank!
- Refinancing and consolidation for graduate and undergraduate, private and federal student loans
- Must have achieved a Bachelors or Graduate degree.
- PLUS loans have become an extremely popular options for parents with college students. DRB allows parents of degree holders to refinance PLUS loans after the child is working and has received their degree. The parent can choose to refinance in their name, or their child's name.
- 1.90% 3.98% variable rate student loan consolidations and refinancing options
- 3.50% 6.25% fixed rate student loan consolidations and refinancing options
- 5, 10, 15, 20 year repayment terms
- Variable rates capped at 9% for 5,10,15 year terms. If you decide to go with the 20 year term, the maximum rate cap is set at 18% APR.
- Moderate credit score, salary, and debt-to-income requirements
- No origination fees
- No prepayment penalties
- .25% Interest Rate Reduction with automatic payments via ACH. Please note, the automatic payments are a free service for borrowers.
5) CommonBond Student Loan Refinance
CommonBond Review
So you just graduated from a great school and you're stuck with a mountain of student loan debt. Well join the club. In 2012, a few students from the University of Pennsylvania sought out to help student loan borrowers. These MBA students were tired of high interest rates on their student loans and sought out to change the student loan industry. They founded CommonBond. Today, CommonBond has raised over $100 million in funding with the goal of making student loans more affordable and now serves over 700 graduate programs across the U.S. Finding the best student loan refinance or student loan consolidation company can be a difficult job.
The Basics
CommonBond allows borrowers to consolidate and refinance both federal and private student loans. The company offers borrowers an array of options to consider. CommonBond offers borrowers 5, 10, 15, and 20 year terms with both variable, hybrid, and fixed interest rate options.
The range of interest rates for Common Bond start as low as 1.92% for their 5-year variable rate loan and go as high as 8.605% for their 20-year fixed rate loan. At LendEDU we only work with lenders who have the students best interest in mind.
Like most student loan lenders lenders, CommonBond does not charge an origination fee and there is no pre-payment penalty for paying off your loans early. At this time borrowers can apply to consolidate up to $220,000 in student loans. For most of us, $220,000 should be enough.
Unlike some lenders, CommonBond has fairly strict eligibility criteria. Please see the list of eligible degree programs and schools below:
CommonBond Student Loan Refinance Benefits
CommonBond offers some of the lowest student loan refinance and consolidation interest rates on the market. Without origination fees and prepayment penalties, it is easy for borrowers to compare CommonBond alongside their current loans.
CommonBond offers four different length repayment plans. Having the option of 5, 10, 15, and 20 year plans allows borrowers to tailor monthly payments to their specific needs and better plan for the future. Whether you are looking to pay off your loans quickly, or you are trying to take your time, CommonBond has a product offering for you!
Out of all the student loan refinance lenders we work with, CommonBond has the best customer service. The company prides itself on helping it borrowers navigate the student loan market and beyond. The company even has a program help borrowers who lose their job find a new one.
CommonBond is building an incredible reputation for itself. CommonBond cares about its borrowers unlike any other company weve seen. Give them a call. I bet you a human answers the phone on the first ring.
Common Bond uniquely offers a Hybrid Loan that is both a fixed rate loan and a variable rate loan. The Hybrid Loan has a 10-year repayment term, the interest rate starts out as a fixed rate loan for the first five years and then becomes a variable interest rate loan for the final five. From a borrower perspective, the more options the better.
The Bad
Tight eligibility standards make it tough for every borrower to qualify. Over time we expect that CommonBond will expand their eligible school list and degree programs even further to allow more borrowers into the CommonBond system. We have seen other new lenders start out with just a few schools, then expand their eligibility as they grow.
In general, CommonBond looks for applicants with very strong incomes and low debt. To be approved by CommonBond you must have good credit, a well paying job, and be able to keep your debt load low. Having a cosigner can greatly improve you chances of being approved. To apply with a cosigner you must reach out to CommonBond support team. The company does not let you apply with a cosigner directly.
Bottom Line
The CommonBond student loan refinance and consolidation program is a great option for people who want:
At LendEDU, we give CommonBond our stamp of approval. To get started you can start the application at CommonBond!
- Refinancing and consolidation for private and federal student loans
- Must have an MBA, JD, MD (post-residency), or Engineering graduate degree program within the CommonBond school network. See if your school qualifies here.
- 1.93% 4.97% APR variable rate financing (with autopay)
- 3.74% 6.49% APR fixed rate financing (with autopay)
- 5, 10, 15, and 20 Year Repayment Terms
- 0.25% interest rate discount with auto-pay from a checking account
- Moderate credit score, salary, debt-to-income and other criteria
- Unemployment protection loan payments are paused temporarily
- Access to CommonBond Community Networking events and other perks
- Social good each and every fully funded degree through CommonBond, the education of an abroad student in need is funded too!
6) Education Success Loans Student Loan Consolidation
Finding the best student loan refinance or student loan consolidation company can be tough. Each lender has its own set of criteria, interest rates, and term lengths. Moreover, each lender brings something unique for borrowers. Cosigner requirements, credit score minimums, and customer service can vary at each lender. At LendEDU we work with only the top student loan refinance and student loan consolidation companies. One company trying working to help student loan borrowers is Education Success Loans! Education Success Loans was started for the sole purpose of lending to student loan borrowers.
The Basics
The lowest interest rate that Education Success Loans currently offers is 4.99% at a mixed rate. What is a mixed rate? A mixed interest rate starts at fixed, then adjusts to variable later on. Mixed rates are great for borrowers who want to lock in low interest rates today and believe that interest rates will stay low in the future. The highest interest rate offered is 7.99%. Today, Education Success Loans allows borrowers to refinance and consolidate both federal and private student loans. If you are a borrower stuck paying high interest rates on old federal and private student loans, Education Success Loans is a great option.
Education Success Loans charges NO origination fees which can help borrowers save money from the beginning.
As far as credit criteria goes, Education Success Loans requires borrowers to have a good credit score and an average debt-to-income. Education Success Loans has good approval ratings, so definitely apply even if you may think you are not qualified. Many borrowers have told us that Education Success Loans approved them even with only alright credit. Education Success Loans works with each borrower on a case by case basis to determine eligibility and approval.
Education Success Loans offers a term length of 25 years. There is no penalty for paying off your loan early, and borrowers can pay as much as they would like each month on top of their minimum monthly payment. Borrowers are expected to make payments on a monthly basis. The company offers an interest rate discount of 25 basis points if you sign up for auto-pay. Auto-pay is easy to setup and convenient for borrowers. No longer will you need to worry about sending in checks to pay for your student loans.
Education Success Loans Consolidation Benefits
Education Success Loans offers borrowers three great options to refinance and consolidate student loans. Out of all the student loan refinance and student loan consolidation lenders on the market, Education Success Loans is the only lender to offer 25 year term lengths. If you are looking to lower your monthly payment, you can bet that a 25 year term will do the trick. By spreading your student loan repayment out of 25 years you will be required to pay much less each month.
Education Success Loans has zero origination fees! Origination fees are fees charged to borrowers for taking out a loan. Usually, origination fees are quoted as a percentage of the loan. These fees are added to the principal of the loan. But with Education Success Loans you can avoid these costs all together. By not having an origination fees, Education Success Loans makes it easy to compare the value of a consolidated loan against the current loans that the borrower already has.
Education Success Loans has zero prepayment penalties! For people working to pay off their student loans quickly, zero prepayment penalties are important. Some lenders charge borrowers when they pay off their loans early. So if you come into that year end bonus, you dont need to fear paying off your loans early. You may be fearful to extend your student loans out to 25 years, but with zero prepayment penalties you can easily pay off your student loans early if you so choose.
To Consider
The biggest disadvantage of Education Success Loans is that they are a smaller lender in the industry. As a result, the company has only one 25 year term length available for borrowers. That being said, you can choose to pay back your loan funds without a prepayment penalty if you would like. The other disadvantage is that Education Success Loans only offers mixed interest rates. This could be an issue for some borrowers looking to lock in low interest rates today. If you are worried that interest rates will rise in the short term, you should select an option with a longer fixed interest rate period.
Bottom Line
The Education Success Loans student loan refinance and consolidation program is a great option for people who want:
- To lower their monthly payment
- Zero prepayment penalties
- A longer 25 year term length
- Consolidate federal and private student loans
- Want a personalize customer service experience
- Student loan refinance & consolidation for Private and Federal Student Loans
- 25 Year Repayment Term
- 1 Year Fixed 4.99% then variable rate for the term of the loan
- 5 Year Fixed 5.99% then variable rate for the term of the loan
- 10 Year Fixed 7.99% then variable rate for the term of the loan
- Auto-Pay: 0.25% Interest Rate Reduction with automatic payments via ACH
- No Origination Fees
- No Prepayment Penalties
- Must have graduated at least 30 months prior to application date
- Have a minimum of $5,000 ($15,001 if in Kentucky) in private student loans to consolidate
- Supply acceptable proof of income of at least $24,000 annually
- Be a US Citizen or Permanent Resident and continue to be a Permanent resident of DC or any state in the continental United States other than AZ, IA, IL or WI
7) iHelp Student Loan Consolidation
iHelp Student Loans is a smaller student loan organization working to help graduates best manage their student loans. iHelp recently launched a student loan consolidation service in partnership with its lender partners. iHelp is a middleman of sorts. In short, iHelp matches student loan borrowers with smaller and community banks. Community banks, like credit unions, usually focus in on one particular geographical area. Community banks are eager to help customers manage their student loans. With iHelps Student Loan Consolidation program more community banks can get into the student loan refinance market.
At LendEDU we like to work with as many lenders as possible. Why? Well the more lenders we have on our student loan refinance platform the better. Community banks are known to offer some great interest rates and even better customer service.
The Basics
iHelp offers competitive student loan refinancing rates and terms to prospective borrowers. The company has two different rates depending on if you apply with or without a cosigner. If you apply with a cosigner, student loan consolidation and refinance rates start at 6.00%, or 6.22% APR. If you apply without a cosigner, your starting rate could be as low as 7.00%, or 7.21% APR. All of iHelps student loan consolidation rates are fixed rates. Meaning, all of the interest rates will not change over the life of the loan. Your monthly payment and total loan cost will not change with iHelps student loan consolidation program.
iHelp does charge its borrowers a supplemental fee at the time of the loan disbursement. iHelp charges 2% on top of the loan balance as a fee for processing the new student loan consolidation. Most lenders these days do not charge disbursement fees. iHelp is unique in this area.
iHelp only allows borrowers from only certain schools to apply for its student loan consolidation program. The approved school list is fairly large. Know that the participating schools are in the following states: California, Connecticut, Delaware, Illinois, Maryland, Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, West Virginia, and Wisconsin.
The reason that iHelp only allows certain schools is that the community bank partners tend to only focus on certain geographical regions.
In order to qualify you must be creditworthy. According to iHelps website, creditworthy means:
Has not had open collections or charge offs in the past 2 years.
Does not have bankruptcies, foreclosures or repossessions during the past 5 years.
Has not defaulted on a federal or private student loan.
Meets the minimum credit score.
Has at least 2 years of credit history.
The borrower or cosigner must have an annual income of $24,000 or greater for the past 2 years to qualify for the iHELP Consolidation Fixed Rate Program.
Does not exceed the debt to income threshold of 45%.
You should know that additional credit criteria may apply.
iHelp's student loan consolidation loan is administered by the Student Loan Finance Corporation (SLFC) and sponsored by the Independent Community Bankers of America (ICBA). Loans are funded by an iHELP originating lender.
iHelp Student Loan Consolidation Benefits
iHelp offers a number of benefits to its student loan consolidation and refinance customers.
Our favorite benefit offered by iHelp is its cosigner release benefit. Having a creditworthy cosigner can really help you get approved for the iHelp Student Loan Consolidation program. After 24 month, you have the ability to release your cosigner from the consolidation loan. You must have made all 24 monthly payments on time. You must also meet iHelps credit requirements in order to qualify for cosigner release. Even so, cosigner release is an awesome benefit to offer!
If you refinance with iHelp, you will have the choice of three different repayment options. Of course you can just choose the standard repayment, but there are a couple unique options to consider. iHelp offers interest only payments. Meaning, the borrowers has the option to pay only interest for 24 months. This is a great option for borrowers looking to temporarily lower their monthly payment. iHelp also offers graduated repayment. This option allows borrowers to make interest only payments for a set period of time and then gradually overtime the payment amount increases until the borrower is making the full principal and interest payments.
iHelp even offers forbearance options to borrowers. If you fall into a financial rut, iHelp has your back and can help you delay your monthly payments with forbearance.
The Not So Good Stuff
If you are a very qualified candidate for student loan refinance, iHelp is probably not your best option. iHelps student loan consolidation interest rates tend to be a little high. If you are a very qualified candidate, you can probably get lower interest rates at another one of the student loan refinance lenders.
Moreover, the supplemental fee charge by iHelp is expensive. The supplement fee is currently set at 2% of the loan balance. You need to factor in the costs of the supplement fee when considering iHelps interest rates. The APR rate will include the supplemental fee.
The Bottom Line
The iHelp Student Loan Consolidation program is a good option for some borrowers who:
Want to consolidate student loans
Are interested in cosigner release
Want interest only payment plans
Want a community bank lender
At LendEDU, we give iHelp a stamp of approval. Check out their website for more information and to get started.
- Student loan consolidation rates start at 6.00%, or 6.22% APR
- 15 year term length
- Only fixed rate options
- Cosigner release is available after 24 months
- Interest only payments are available for 24 months
- Graduated payments available
- Community bank lenders
- School must be on accepted school list
Direct Student Loan Consolidation
You can consolidate student loans without a new private student loan lender. In fact, the Department of Education allows you to consolidate federal student loans through the Direct Consolidation Loan program. The Direct Student Loan Consolidation program is allows you to consolidate federal student loans into one new federal student loan.
You will not need to pay any fees to consolidate federal student loans through this program. In fact, you can consolidate your federal student loans for free online. Do not pay to consolidate student loans!
When you consolidate federal student loans you will no longer have to deal with multiple federal student loan payments. After consolidation, you will only have one loan, one interest rate, and one monthly payment. The interest rate you pay will be calculated as a weighted average of your previous federal student loan interest rates. Private student loans cannot be consolidated through the Direct Consolidation Loan program.
Most federal student loans are eligible for consolidation. You can consolidate Stafford, Perkins, PLUS, and other popular types of federal student loans. To consolidate federal and private student loans together, you must go through a private lender.
If you have questions about federal student loan consolidation, you can contact the Loan Consolidation Information Center at 1-800-557-7392. LendEDU does not represent the Department of Education in any way. Please consult a financial adviser before consolidating federal student loans.
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