Как рефинансировать ипотеку, заем или кредитную карту: что важно знать :: Новости :: РБК Инвестиции

Чтобы меньше платить по кредиту, можно его рефинансировать. Но везде есть свои подводные камни. Мы спросили у экспертов и банков, на что нужно обратить внимание, прежде чем принять такое решение

Фото: Kelly Sikkema / Unsplash

Центральный банк России с 2015 года снижает ключевую ставку, по которой он предоставляет кредиты коммерческим банкам. Тогда ставка составляла 17%, но постепенно уменьшалась и 19 июня текущего года достигла исторического минимума — 4,5%.

Со снижением ключевой ставки приходит уменьшение процентов по вкладам и ставок по кредитам в банках, в том числе по ипотеке. Поэтому сейчас взять кредит выгоднее, чем было несколько лет назад.

В случае если у вас уже есть кредит, на помощь может прийти рефинансирование — получение нового займа на погашение старого. Этот инструмент позволяет снизить ставку, ежемесячные платежи, срок кредита и переплату за него.

По данным Райффайзенбанка, в последние месяцы растет интерес к рефинансированию потребительских кредитов, которые составляют 23% от всех сделок банка. С ипотеками дела обстоят наоборот — за пять месяцев текущего года объем их рефинансирования немного снизился, доля таких сделок относительно всего объема выданных кредитов составила 47%. В Промсвязьбанке (ПСБ) рассказали, что с марта по июнь рефинансировали 4,3 тыс. ипотечных кредитов на общую сумму ₽8 млрд.

Банк России снизил ключевую ставку до минимума. Что происходит с ипотекой

В банке «Открытие» отметили, что у них за этот же период количество заявок на рефинансирование составило свыше 6,7 тыс. Наибольшая активность была в марте, когда поступила 3651 заявка, а в следующем месяце — всего 343.

По итогам первых пяти месяцев 2020 года ВТБ рефинансировал ипотеку на ₽82,2 млрд, что оказалось в пять раз выше показателя аналогичного периода прошлого года. Потребительских кредитов банк рефинансировал на ₽52 млрд, рассказали в пресс-службе.

Рекордным по количеству рефинансированных ипотечных кредитов клиентов других банков стал март — в этом месяце объем достиг ₽24 млрд. С учетом влияния пандемии коронавируса и режима самоизоляции в апреле число сделок незначительно снизилось, но в мае вернулось к уровню начала года — 7,7 тыс. человек рефинансировали ипотеку на ₽16,4 млрд.

Плюсы рефинансирования

Кроме уменьшения ставки, платежей и переплаты, у этого инструмента есть другие плюсы. Например, рефинансировать можно сразу несколько кредитов в разных банках. После этого по всем займам будет производиться единый ежемесячный платеж, сообщили в пресс-службе банка «Открытие».

Рефинансирование также позволяет получить сумму, превышающую объем ранее взятых займов. Таким образом, заемщик не только снижает стоимость обслуживания своих кредитов, но и получает свободные деньги, отметили в банке.

Данные о рефинансировании передаются в бюро кредитных историй, однако они не портят кредитную историю клиента. «Для банков вы остаетесь качественным заемщиком, которому можно доверять и предлагать займы на более выгодных условиях», — сообщил РБК Quote руководитель направления по развитию потребительских кредитов Райффайзенбанка Дмитрий Сивов.

Не стоит путать рефинансирование с реструктуризацией долга. Последняя проводится, когда человек по какой-то причине не может платить по кредиту или выплачивать прежнюю сумму ежемесячно. Реструктуризация негативно влияет на кредитную историю, и придется доказывать банку, почему человек не может платить столько, сколько раньше, рассказала финансовый консультант Анна Громова. Однако с рефинансированием такого не произойдет.

Власти объявили ипотечные каникулы. Как их получить

Она также поделилась историей из своей практики, на примере которой наглядно видна выгода рефинансирования. Человек взял в ипотеку квартиру в Москве, сумма кредита была около ₽16 млн, а ежемесячный платеж — ₽135 тыс. После рефинансирования он стал платить ₽105 тыс. в месяц, то есть на ₽30 тыс. меньше.

А что насчет минусов?

Из минусов этой процедуры можно назвать повторный сбор большого количества документов, если речь идет об ипотеке. «Нужно снова собирать пакет документов, как при текущем кредите, опять придется проводить оценку объекта, страховаться, платить за регистрацию сделки», — отметила руководитель проекта ipotekahouse.ru Марина Малайчик.

Кроме того, могут понадобиться нотариальные согласия, например разрешение супруга на эту сделку, а также согласие органа опеки и документы по текущему займу — кредитный договор и справка от банка о текущем остатке долга.

Заемщику также нужно будет оформить залог на жилье в пользу нового банка, если рефинансирование происходит не в вашей кредитной организации. В среднем на новую оценку объекта залога клиент потратит ₽5 тыс., на новую страховку — 0,8–01% от суммы кредита.

«Поэтому более выгодно проводить рефинансирование, когда у вас заканчивается срок по прежней страховке», — посоветовала руководитель центра разработки ипотечных продуктов Промсвязьбанка Марина Заботина. До завершения оформления залога банк обычно устанавливает надбавку к процентной ставке, а после — снижает ее.

Но есть нюансы…

При принятии решения, делать ли рефинансирование кредита или нет, стоит учесть несколько нюансов. Первый из них касается ипотеки. Если человек взял ипотечный кредит, заем на покупку машины и кредитную карту, то теоретически их можно рефинансировать и объединить в одно целое.

Однако при подобном рефинансировании человек потеряет право на налоговый вычет, который составляет 13% от уплаченных по ипотеке процентов, но не более ₽390 тыс. Причина — новый кредит будет уже не ипотечный. В связи с этим Анна Громова советует рефинансировать ипотеку новым ипотечным займом, так как с него тоже можно будет получать налоговый вычет.

Какие налоговые льготы полагаются из-за коронавируса: что важно знать

Второй нюанс касается ставок. Например, вы брали потребительский кредит под 18%, а вам предложили рефинансировать его займом под 12%. Можно подумать, что это выгодное предложение, но стоит учитывать срок, в течение которого вы уже выплачивали заем банку. Допустим, вы взяли кредит на пять лет и платили его в течение трех. Таким образом, вы выплатили уже более половины займа.

По словам Громовой, большинство банков используют систему аннуитетных платежей. В этом случае вы платите каждый месяц одну и ту же сумму. Однако в первой половине срока кредита вы платите больше процентов банку, чем погашаете тело долга, а во второй половине — наоборот. В результате при рефинансировании вы начнете все заново и снова будете платить больше процентов, чем покрывать основной долг. Например, человек, который брал ипотеку на ₽16 млн, за первый год заплатил банку ₽1,5 млн, однако из этой суммы на погашение долга пошло только ₽65 тыс.

Для того чтобы разобраться, выгодно ли сделать рефинансирование, нужно посчитать данные по кредитному калькулятору. Его можно найти в интернете. Необходимо внести информацию по текущему кредиту — какая осталась сумма долга, сколько месяцев еще нужно выплачивать кредит и какая ставка. Затем нужно ввести данные другого кредита, который вы хотите использовать для рефинансирования, а потом сравнить переплату по займу в первом и втором случаях. По мнению Громовой, рефинансировать кредит лучше в первый или второй год после получения займа, так как это выгоднее.

По словам Малайчик, расчеты показывают, что выгодно рефинансировать кредит можно тогда, когда новая ставка хотя бы на 1,5% ниже текущей. Такой же позиции придерживаются и в ВТБ. В Промсвязьбанке отметили, что разница между ставками по новому и старому кредиту должны быть 1,1–1,3%, чтобы рефинансирование имело смысл.

---

Все материалы нашего проекта доступны в Яндекс.Дзене. Подписывайтесь, чтобы быть в курсе

90000 Refinancing Student Loan Debt Can Save Thousands 90001 90002 Our goal here at Credible is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own. 90003 90002 Borrowers using Credible to refinance student loan debt into a loan with a shorter repayment term can expect to save an average of $ 17,344 90005 1 90006 over the life of their new loan. 90003 90002 That’s according to an analysis of self-reported data provided by borrowers who refinanced their student loans using the Credible marketplace from Nov.1 2017, through Dec. 29, 2018. 90003 90002 The savings you can achieve when refinancing student loan debt will depend on your goals, and the strategy you choose to reach them. 90003 90002 Some borrowers choose to maximize their overall savings by refinancing into a loan with a shorter repayment term. That not only allows them to pay their loans off faster, but can help them qualify for a lower interest rate. But keep in mind that this strategy can increase your monthly payment. 90003 90002 Borrowers who want to focus on reducing their monthly payment may refinance into a loan with a longer repayment term.Although borrowers pursuing this strategy typically reduce their interest rate, their overall repayment costs may increase because they’re stretching their payments out over a longer period of time. 90003 90016 Key takeaways 90017 90018 90019 Borrowers who chose a loan with a shorter repayment term in order maximize overall savings reduced their interest rate by 2.13 percentage points and will pay $ 17,344 less over the life of their new loan, on average. 90020 90019 Those who chose a longer loan repayment term saw rate reductions averaging 1.82 percentage points and reduced their student loan payments by $ 209 90005 2 90006 a month. 90020 90025 90002 Another approach is to refinance into a loan with a lower interest rate and a repayment term that’s comparable to your existing loan. Borrowers pursuing this strategy can reduce both their monthly payment and the total amount repaid, although not by as much as if they’d chosen to focus on just one of those goals. 90003 90016 What the numbers say 90017 90002 Credible’s analysis broke users into two groups: 90003 90018 90019 Those focused on reducing their interest rate and repayment term in order to decrease the total amount repaid (group one), and 90020 90019 Those who were aiming to reduce their monthly payment by increasing their loan repayment term (group two).90020 90025 90002 We found that borrowers in both groups were able to reduce their interest rate by an average of 1.95 percentage points when they refinanced their loans with lenders who compete for business through the Credible marketplace. 90003 90002 Because loans with shorter terms generally have lower interest rates, borrowers who chose loans with shorter repayment terms saw the greatest interest rate reduction. 90003 90016 Student loan refinancing outcomes, by group 90017 90002 90003 90046 90047 90048 90049 Group 90050 90049 Average change in loan term (months) 90050 90049 Average interest rate reduction (percentage points) 90050 90049 Average change in monthly payment 90050 90049 Average loan balance 90050 90049 Average lifetime savings 90050 90061 90062 90063 90048 90065 Group one (reduced repayment term) 90066 90065 -50 months 90066 90065 -2.13% 90066 90065 + $ 135 90066 90065 $ 56,170 90066 90065 $ 17,344 90066 90061 90048 90065 Group two (increased repayment term) 90066 90065 +62 months 90066 90065 -1.82% 90066 90065 — $ 209 90066 90065 $ 48,949 90066 90065 (- $ 5,056) 90066 90061 90048 90065 Both groups 90066 90065 +15 months 90066 90065 -1.95% 90066 90065 — $ 64 90066 90065 $ 52,001 90066 90065 $ 4,411 90066 90061 90106 90107 90002 90109 Source: Student loan refinancings by multiple lenders initiated through the Credible marketplace from Nov.1 2017, through Dec. 29, 2018. 90110 90003 90002 Borrowers using the Credible marketplace to refinance into a loan with a shorter repayment term saw their monthly payments increase by $ 135, on average. But because they will make an average of 50 fewer payments — and pay down their loan at a lower interest rate — those borrowers will save an average of more than $ 17,000 in the long run. 90003 90002 Borrowers who used Credible to refinance into a loan with a longer repayment term will pay $ 5,056 more over the life of their new loan, on average.That’s because even though this group of borrowers was able to trim $ 209 from their monthly payment and reduce their interest rate by 1.82 percentage points, they’ll make 62 months of additional payments, on average. 90003 90016 How to use these numbers 90017 90002 The interest rate reduction and savings you could realize by refinancing your student loan debt depends on a number of factors, including: 90003 90018 90019 The strategy you pursue — maximizing overall savings, or reducing your monthly payment 90020 90019 The type of loan you choose (short or long repayment term, fixed or variable interest) 90020 90019 The amount you refinance 90020 90019 Your credit and earnings history 90020 90025 90002 Because many borrowers have used Credible to refinance graduate school debt, the average loan balance for all users — $ 52,001 — is greater than the debt typically taken on by undergraduates.If you have less student loan debt than the average Credible user, your savings from refinancing could be proportionately less. 90003 90002 This analysis of thousands of borrowers who have refinanced their student loan debt through Credible is only intended to be a starting point for further research. 90003 90002 Requesting prequalified rates through Credible does not affect your credit score, or require that you share your personal information with lenders at this stage of the process. But, if you do choose a lender and move forward with an application, your information will be sent to the lender and you will agree to a hard credit inquiry, which can impact your credit score between 2 to 9 points.90003 90016 Do your research 90017 90002 Refinancing student loan debt with a private lender is not for everyone. If you refinance government loans with a private lender, you’ll lose access to programs like income-driven repayment, and the chance to qualify for loan forgiveness after 10, 20, or 25 years of payments. 90003 90002 While some private lenders will grant deferment or forbearance to borrowers facing financial difficulties, government student loans can be more lenient in that respect.90003 90002 Enrolling in a government-sponsored income-driven repayment program like REPAYE can lower your monthly payments by extending your loan term to up to 25 years. Borrowers can also extend their repayment terms by consolidating student loan debt and enrolling in a standard or graduated repayment plan. But extending your loan term in a government repayment program does not provide an interest rate reduction, and can increase total interest and principal payments. 90003 90016 Methodology 90017 90002 The student loan refinancing outcomes presented here are based on refinancings by multiple lenders initiated through the Credible marketplace from Nov.1 2017, through Dec. 29, 2018. 90003 90002 Savings were calculated by subtracting the projected lifetime cost of each borrower’s student loans after refinancing from the projected total cost of their original student loans. 90003 90002 Some borrowers refinancing through the Credible marketplace choose variable-rate loans that can rise and fall with benchmark interest rates. Our analysis does not attempt to predict how rates on these loans could change over time. The calculations also assume that users will make payments on time, and that there will be no prepayments.90003 90002 We excluded a few anomalous cases in which borrowers may have provided erroneous information about their existing loans. Our analysis of loans refinanced through the Credible marketplace excluded any borrowers whose reported monthly payment was not enough to pay down their existing loans over time, or whose reported monthly payment exceeded $ 5,000. 90003 90002 Also excluded were borrowers: 90003 90018 90019 Who we calculated had more than 25 years of remaining payments 90020 90019 With less than one year of payments remaining 90020 90019 Whose self-reported loan balance differed by more than 5% from the amount actually refinanced 90020 90025 90002 Borrowers enrolled in income-driven repayment plans like REPAYE qualify for loan forgiveness after they have made regular payments for 20 or 25 years.The amount forgiven is considered taxable income by the IRS. Public service loan forgiveness programs for teachers, government employees, and tax-exempt nonprofits, provide tax-free relief after 10 years of payments. We did not factor the potential for loan forgiveness into our savings calculations. 90003 90166 90002 90005 1 90006 90170 90109 90172 $ 17,344 savings disclaimer: 90173 Actual savings may be higher or lower. Average $ 17,344 savings calculation based on self-reported data from users who provided data to Credible.com about their original loans (such as loan balance, repayment term, and rate), created an account between Nov. 1 2017 and Dec. 29, 2018, and refinanced into a student loan with a shorter repayment term than their previous loan (s). This calculation excludes borrowers who refinanced to a loan of a similar or longer duration or who reported loan terms that deviate from normal user experiences, including: (i) any loan term with less than one (1) year or more than twenty-five ( 25) years remaining; (Ii) monthly loan payments greater than $ 5,000 per month; and (iii) any existing loan amount that deviates more than five (5) percent from the loan amount disbursed upon refinancing.Our calculations do not take into account variable factors such as the borrower’s potential eligibility for loan forgiveness, variable interest rates, or pre-payments. Please note that your actual savings may vary depending on interest rate, balance, loan terms, credit score, and other factors. 90110 90175 90003 90002 90005 2 90006 90170 90109 90172 Reduction in monthly payment disclaimer: 90173 Actual reduction in monthly payment may be higher or lower. Average reduction in monthly payment calculated based on self-reported data from users who provided data to Credible.com about their original loans (such as loan balance, repayment term, and rate), created an account between Nov. 1 2017 and Dec. 29, 2018, and refinanced into a loan with a longer repayment term than the weighted average of their previous loan (s). This calculation excludes borrowers who refinanced to a loan of similar or shorter duration or who reported loan terms that deviate from normal user experiences, including: (i) any loan term with less than one (1) year or more than twenty-five (25 ) years remaining; (Ii) monthly loan payments greater than $ 5,000 per month; and (iii) any existing loan amount that deviates more than five (5) percent from the loan amount disbursed upon refinancing.Our calculations do not take into account variable factors such as the borrower’s potential eligibility for loan forgiveness, variable interest rates, or pre-payments. Please note that your actual savings may vary depending on interest rate, balance, loan terms, credit score, and other factors. 90110 90175 90003 90002 About the author 90003 90002 Matt Carter 90003 90002 Matt Carter is a Credible expert on student loans. Analysis pieces he’s contributed to have been featured by CNBC, CNN Money, USA Today, The New York Times, The Wall Street Journal and The Washington Post.90003 Read More 90002 Home »All» Student Loan Refinancing »90194 Refinancing Student Loan Debt Through Credible Can Save Thousands 90173 90003.90000 Refinance Student Loans to Save Time and Money 90001 90002 Debt.com strives to provide our users with helpful information while remaining unbiased and truthful. We hold our sponsors and partners to the highest industry standards. Once vetted, those sponsors may compensate us for clicks and transactions that occur from a link within this page. 90003 90004 Refinancing can consolidate student loans and make it easier to pay off your debt faster to save money. 90005 90002 Student loans are often a phenomenal burden to borrowers.High balances drive up your debt-to-income ratio, making it impossible to buy a home or finance your next car. Multiple monthly payments can eat up income and leave you strapped for cash. And missed payments can ruin your credit, making it harder to control your financial life. Thankfully, by refinancing your student loans, you can: 90003 90008 90009 Reduce your monthly payments 90010 90009 Save money over the life of your loans 90010 90009 Consolidate your bills into one payment 90010 90015 90002 The advantages of refinancing student loans can be tremendous.But, there’s a catch. You can not refinance federal student loans through any federal relief program. So, when you refinance, you must convert all your federal student loan debt to private. Here’s everything you need to know to make an informed decision about student loan refinancing. 90003 90002 90019 Table of Contents 90020 90021 90003 90023 The goal of student loan refinancing 90024 90002 There’s always one main goal with refinancing any type of loan: 90026 lower the interest rate applied to your debt.90027 Lowering the rate usually allows you to accomplish a few things: 90003 90029 90009 It always reduces total interest charges, so you save money 90010 90009 With less money going to cover accrued interest charges, you can: 90029 90009 Pay off your debt faster 90010 90009 Pay less each month 90010 90038 90010 90038 90002 In some cases, you can actually do both. You get out of debt faster even though you pay less each month. That’s because reducing interest charges allows you to pay off student debt efficiently.90003 90004 How to refinance student loans 90005 90002 When you refinance, you actually take out a new loan at a lower interest rate. Then you use the money from the new loan to pay off the original loan (or loans) that you want to refinance. Debt consolidation is basically refinancing multiple loans with one new loan. So, when you refinance student loans, you often consolidate your student debt as well. 90003 90002 The process to refinance student loans is exactly like the process to refinance other types of debt: 90003 90029 90009 First, you determine how much debt you need to refinance.90010 90009 Make sure to note the current balance and APR on each loan you want to include. 90010 90009 Then, you shop around for a loan that fits your needs by getting quotes from lenders. 90010 90009 Once you find a loan with a rate and term to fit your needs, you apply for the loan. 90010 90009 You authorize the lender to run a credit check, which creates a hard inquiry on your credit report. 90010 90009 The lender will also ask for information about the existing debts you wish to refinance.90010 90009 Loan approval depends on: 90029 90009 Whether your credit score is high enough to qualify; every lender has a minimum credit score required to qualify for their loans. 90010 90009 If your debt-to-income ratio is below the lender’s maximum allowable DTI ratio with the new loan payments factored in. 90010 90038 90010 90009 Once approved, you work with the loan underwriter to find a term that offers the monthly payments you need. 90029 90009 A short term means higher monthly payments, but lower total interest charges.90010 90009 A longer term means lower monthly payments, but a higher total cost. 90010 90038 90010 90009 Then once you finalize the loan, the money gets disbursed to pay off your existing loans. 90010 90009 This leaves only the new loan to pay off. 90010 90038 90023 Important tips on refinancing 90024 90008 90009 90026 As you shop around for loans, make sure to only ask for quotes! 90027 If you apply for multiple loans, you authorize multiple credit checks, which creates lots of hard inquiries within a short span of time.Too many hard inquiries can actually hurt your credit score, making it harder to qualify for the loan you want. 90010 90009 90026 Lenders may have special restrictions on refinancing student loans. 90027 90008 90009 Some lenders will only allow you to refinance if you graduated and earned a degree. 90010 90009 Lenders may also have restrictions what types of student loans they refinance. For instance, some lenders do not refinance parent PLUS loans. 90010 90009 Most lenders have maximum loan amounts you can refinance.90010 90009 Others only offer loan terms up to a certain number of years. 90010 90015 90010 90009 90026 Credit score requirements can vary widely by lender and qualifying for student loan refinancing is usually more relaxed. 90027 In other words, you may have a credit score that would not qualify you for a mortgage, but you can still qualify for student loan refi. Even if you have bad credit, there are online lenders that will work with you. 90010 90009 90026 Debt-to-income (DTI) ratio limits also vary slightly by lender.90027 Lenders calculate DTI with your new payments factored in and your old payments taken out. Most lenders will not lend to you if your projected DTI is above 45%; some lenders require even lower DTI. 90010 90009 90026 The easiest way to shop around for loans is usually to use a loan comparison tool. 90027 This allows you to get quotes from multiple lenders at once. Additionally, these tools help you narrow your list down quickly by eliminating loans you can not qualify for in your situation. 90010 90009 90026 Try to avoid loans with fees.90027 This includes loan origination fees, as well as early repayment or prepayment penalty fees. 90010 90015 90023 Here’s why Debt.com recommends Credible to refinance student loan debt 90024 90002 At Debt.com, it’s our mission to connect you with the best debt relief services in the industry, so you can get the help you need without a hassle. For student loan refinancing, we recommend Credible because it streamlines the whole process of refinancing. 90003 90002 This is how the refinancing process works when you use Credible: 90003 90029 90009 First, you 90026 tell Credible what you’re trying to accomplish with refinancing 90027, besides just getting a lower interest rate.This way, the tool only shows you loans that fit your goals. 90010 90009 You also 90026 tell them where you went to school and what degree you earned 90027. This narrows down the list further by eliminating loans where you do not meet the qualification requirements. 90010 90009 Then you 90026 tell them how much debt you wish to finance and provide a little information on your financial situation 90027. This all takes about 2 minutes, as long as you have the information you need on hand. You’ll need to know: 90029 90009 Your monthly housing payment 90010 90009 Gross (pre-tax) annual income 90010 90009 Other individual income and income from other members of your household 90010 90038 90010 90009 Once you give them some personal information, like your name and phone number, 90026 they show you loans that meet your needs 90027.90010 90009 This is where Credible starts to beat other loan comparison tools because 90026 it lets you filter the results 90027 based on: 90029 90009 Getting a fixed versus variable interest rate 90010 90009 The term (length of the loan) that you want, from 5 -15 years 90010 90009 The monthly payment you can afford 90010 90038 90010 90009 Once you find a loan that fits your needs, you choose that lender. Then 90026 Credible has an automated tool that easily imports information about your existing loans 90027.90010 90009 You fill out a few more details and then the lender has everything they need to get you approved. 90010 90038 90023 More benefits offered by Credible 90024 90008 90009 They can help you find loans regardless of your situation — even if you did not graduate and earn a degree. 90010 90009 Their lenders work with all types of loans, including Parent PLUS loans, which many lenders will not refinance. Parent PLUS loans also do not qualify for federal loan relief. 90010 90009 You get quotes from up to 11 lenders instantly.90010 90015 90002 90182 Advertisment 90183 90003 90004 Should you refinance student loans? Debt.com can help you decide. 90005 90002 Deciding to refinance is a big decision. For some, it’s an easy choice. If most of your student debt is already private and you have good credit, it makes all the sense in the world to refinance. But if most of your loans are federal and your credit is less-than-perfect, then the choice is less clear. 90003 90002 The problem with refinancing student debt is that you can not use a federal relief program to refinance your federal loans.You must go through a private lender to refinance. 90003 90023 Why are not there federal programs to refinance student loans? 90024 90002 There are two types of student loans you can take out to finance your education: private and federal. Federal loans are the ones that you applied for through FAFSA. They come from specific loan servicers, like Navient. These loans are back by the federal government, which means the lender has extra protection in case you default. 90003 90002 Since federal student loan applications through FAFSA are based on need, your credit score is not a factor to qualify for your loans.That also means that the interest rates on student loans are not set based on credit score either. Instead, rates are set every year based on the 10-year Treasury note index. That’s basically a fancy way of saying that the government decides the rate. 90003 90002 When you use federal relief programs to consolidate or find easier ways to repay your debt, credit score still is not a factor. All federal repayment plans calculate interest by taking a weighted average of the rates on your existing loans.As a result, there’s no real way to refinance student loan debt through the federal lending system. 90003 90002 Instead, you must go to a private lender. Private lenders give you a rate that’s based on your credit score. This allows you to reduce the interest rate applied to your debt, which is the primary goal of refinancing. 90003 90023 Deciding if refinancing federal student loan debt is the right choice for you 90024 90002 If most of your student loans are fed loans, you have a choice to make.The decision depends heavily on your financial situation. If you have a good job with a steady income and a balanced budget, then refinancing is often the right choice. You’ll save money and eliminate your debts faster, so you do not have to worry about paying off student loans for years to come. 90003 90002 All federal loans have a term of 10 years — federal repayment plans have terms up to 30 years. That’s a long time to be paying off the same debt. So, if refinancing can help you pay off your debt sooner, then it makes sense.But that’s only true if you’re fairly confident in your ability to maintain financial stability. 90003 90002 Federal relief programs are designed to help people who are struggling. It helps you solve a situation where student loans payments eat up too much income. If you have low income or lots of other expenses (for instance, because you have kids), then making your student loan payments can be a struggle. If so, then losing eligibility for federal relief programs may not be the right choice. Always keep in mind that if you refinance, you will not be able to use: 90003 90029 90009 Federal student loan deferment 90010 90009 Federal student loan forbearance 90010 90009 Hardship-based repayment plans, which can reduce your monthly payments down to 10% of your income (or even less in cases of extreme financial hardship) 90010 90009 Public Service Loan Forgiveness (PSLF) 90010 90038 90002 That last one is a big deal if you are a public servant, such as a nurse or teacher.Student loan forgiveness can get you out of debt for a lot less. In some cases, you may only pay back a portion of what you originally borrowed, without incurring penalties for settlement. 90003 90023 Use Debt.com’s refi-ready self-assessment test to decide! 90024 90002 Debt.com makes it easy to decide if you should refinance with a simple 3-question assessment refinancing assessment test. Answer the three questions below. If you answer «yes» to all three, then refinancing is probably the right choice for you.If you answer no to any question, we’ll also tell you how to decide if refinancing is still the best choice. 90003 90002 Question 1 90003 90002 Are most of your student loans private? 90003 90002 a) Yes 90003 90002 b) No 90003 90002 Reveal Answer 90003 90002 90026 If most of your student loans are private, you are a good candidate to refinance. If most of your student loans are federal loans, then deciding to refinance will come down to the next two questions. 90027 90003 90002 Refinance if you said yes.90003 90002 Return to question 90003 90002 Question 2 90003 90002 Do you have a good credit score? 90003 90002 a) Yes 90003 90002 b) No 90003 90002 Reveal Answer 90003 90002 90026 A better score means there’s a good chance that refinancing will get you a lower interest rate. Private lenders will assign you a rate based on your score. However, for student loans, you can often still get a better rate even with bad credit because lending standards are more relaxed. But if you have excellent credit then it’s an easy choice to go ahead and refinance.90027 90003 90002 Refinance if you said yes. 90003 90002 Return to question 90003 90002 Question 3 90003 90002 Are you financially stable enough to be confident that you will not need federal relief programs for any federal student loans you hold? 90003 90002 a) Yes 90003 90002 b) No 90003 90002 Reveal Answer 90003 90002 90026 If there’s any chance that you may experience financial hardship, refinancing may be risky. You will not have access to federal programs that can significantly reduce or suspend your monthly payments altogether.In addition, if you are a public servant, refinancing means you also lose eligibility for federal student loan forgiveness. 90027 90003 90002 Refinance if you said yes. 90003 90002 Return to question 90003 90002 90280 If refinancing student loans is the right choice for you, use Credible to compare loans from up to 11 lenders in the next 10 minutes. 90281 90003 Save Now 90004 Qualifying for student loan refinancing 90005 90002 Keep in mind that certain lenders may have specialized eligibility requirements for refinancing student loans.This table provides a list of requirements that generally apply to all lenders, as well as requirements you see from some lenders. 90003 90287 90288 90289 90290 Required for all lenders 90291 90292 90293 90294 90289 90296 You must be a U.S. citizen OR permanent resident of the U.S. to refinance on your own. 90297 90292 90289 90296 If you are a resident alien, then you must have a cosigner who is a citizen or permanent resident. 90297 90292 90289 90296 Your loans must be in repayment — i.e. you can not refinance while you’re still attending school. 90297 90292 90307 90288 90289 90290 Required for some lenders 90291 90292 90293 90294 90289 90296 Some lenders require a minimum amount of debt, usually $ 10,000 or more. 90297 90292 90289 90296 Other lenders (not all) require you to earn a degree to refinance with them; they will require proof you graduated. In some cases, they may waive this requirement if you’ve been making payments on time for a certain amount of time. 90297 90292 90289 90296 Not all lenders will work with all types of student loans.Some lenders will not refinance Parent PLUS loans or loans from certain federal or state student loan programs. 90297 90292 90289 90296 Some lenders also will not take loans that are already enrolled in a hardship-based repayment plan, such as Pay as You Earn. 90297 90292 90307 90332 90004 Student loan refi FAQ 90005 90004 Q: 90336 May 13, 2014 90337 Are there any advantages to private student loan refinancing for public servants? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https: // www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Federal relief programs can be beneficial, but they also come with a lot of hoops to jump through. Enrolling in a hardship based repayment plan requires certification of your income and family size. You must recertify every year. At the same time, you must certify you work in a qualified public service profession. You should reapply for that certification annually AND anytime you change jobs. 90002 It’s a lot of work to get the remaining balances on your loans forgiven, and it’s not guaranteed that it will work.The Department of Education can change their standards for what jobs qualify for forgiveness. The Trump Administration has already placed additional limits on certification. As a result, people who thought they would qualify for forgiveness do not under the new rules. Private student loan refinancing is straightforward and simple by comparison. So, you may decide it’s easier to go the private route to save yourself the hassle. 90003 90002 What’s more, qualifying for federal student loan forgiveness requires you to make payments on a hardship-based repayment plan for 10 years before your remaining balances get forgiven.So, you will not get out of debt quickly if you want to use Public Service Loan Forgiveness (PSLF). This means that if you want to get out of debt fast, you may be better off with private student loan refinancing. 90003 90004 Q: 90336 May 13, 2014 90337 Can you refinance student loans after consolidation? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13 , 2014 90337 90002 Debt.com 90003 A: Yes. If you improve your credit profile after you consolidate, you can refinance to get a lower interest rate.This logic specifically applies when you consolidate through a private lender. You’ll get an interest rate that’s at least partially based on your credit score when you consolidate the debt. Then if your score improves, you can refinance to lower the rate even more. 90002 You can also choose to refinance student loan after consolidation if you used a federal consolidation loan. You may decide that the interest rate reduction and cost savings are worth the risk of losing eligibility for federal relief.As long as you can keep up with the payments, going for a lower interest rate is usually the best option. 90003 90002 We recommend watching your mail. Lenders look at credit reports to screen for pre-approved offers. If they see you have student loans and can give you a better rate, they’ll definitely try to contact you. There’s nothing wrong with at least talking to them to get a quote. If it sounds like it’s worth your time, you can proceed with the loan application to refinance. 90021 90003 90004 Q: 90336 May 13, 2014 90337 Can you refinance student loans with bad credit? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Yes. The good news is that lending requirements for student loans are nowhere near as strict as other types of loans. There are several online lenders that specialize in helping borrowers with bad credit get lower student loan interest rates. 90002 Just be aware that you will not get as low of a rate as you would with good or excellent credit.So, while you may qualify for a rate reduction, it will not be the best possible rate until you improve your credit. 90003 90002 If you refinance with bad credit, then consider refinancing again once you improve your credit score. Take steps to build credit and avoid any actions that would damage your credit score. Then keep an eye out for refinancing offers in the mail to see if a bank or lender wants to offer you a better rate. 90021 90003 90004 Q: 90336 May 13, 2014 90337 Can you refinance student loans without a degree? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: You can absolutely refinance student loans with no degree. Although some lenders require you to provide proof of a degree, many do not. Simply check with lenders that offer you quotes to make sure they are willing to work with you. 90002 In order to refinance, your loans must be in repayment. Repayment periods start within 6-9 months of when you dropped out or dropped below half-time enrollment.If you plan to go back to school before the clock starts, then you can stop the repayment countdown and do not need to worry about refinancing yet. But if you do not, then repayment is imminent. 90003 90002 The problem with repaying student loans with no degree is that you may not have the income you need. You took out loans to get a better career. Without that better career, you may find yourself stuck because you do not have enough income to repay your debt efficiently. This happens to a lot of borrowers.In fact, people who have student loans but did not graduate are the most likely to face problems with student debt. 90003 90002 But when it comes to refinancing, most lenders do not care if you graduated or not. They just want to make sure you can afford the payments. If you can, they do not care what job you have. You can refinance just like anyone else. 90021 90003 90004 Q: 90336 May 13, 2014 90337 Can you use a personal debt consolidation loan to refinance student loan debt? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https: // www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: In most cases, no. Student loans do not operate like other types of debt. 90008 90009 Federal loan approval is based on need instead of creditworthiness. 90010 90009 Federal loan interest rates are not set based on credit score. 90010 90009 Lending standards — even on private loans — are more relaxed, so it’s easier to qualify for loans are lower rates even with bad credit. 90010 90009 Student debt (even from private loans) is not as easily discharged through bankruptcy as other types of debt.90010 90015 90002 For all these reasons, most lenders will not let you refinance and consolidate student loans with other types of debt, such as credit cards. So, while a personal debt consolidation loan can be used for credit card debt, auto loan debt and even tax debt, student loans usually must be kept separate. Because it’s a special type of debt, student loans almost always require their own specialized debt solution. 90003 90004 Q: 90336 May 13, 2014 90337 Can you use a home equity loan to refinance student loan debt? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Yes, but you should do so only after extremely careful consideration. Most experts advise against using home equity to pay off other types of debt, including student loans. The reason is that you increase your risk of foreclosure. Defaulting on a student loan can ruin your credit and lead to things like wage garnishment. But a student loan service can not take your home.If you default on a home equity loan or Home Equity Line of Credit (HELOC), then the lender can foreclose on you. 90002 There is, however, another program for using home equity that Fannie Mae launched in 2017. It’s called the Student Loan Cash-Out Refinance. Unlike a home equity loan or HELOC that takes out another mortgage against the homeowner’s primary residence (usually called a second mortgage), a cash-out refinance is a new mortgage. If you have equity built up in your home, you take out a new mortgage for an amount that’s higher than your existing mortgage.You receive the difference in cash. 90003 90002 With a Student Loan Cash-Out Refinance, you use the funds you receive from the cash out to pay off student loan debt. You still only have one mortgage, so it does not add as much additional risk of foreclosure. If you decide to use this option, though, make sure you will qualify for a lower interest rate. Depending on your credit score, mortgage rates may be higher the student loan interest rates for you. If the rate is higher, then you’re paying more instead of saving money.90003 90004 Q: 90336 May 13, 2014 90337 How do I decide when to refinance student loans? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Refinancing debt is all about timing. You want to apply when Federal Reserve rates are low and your credit score is high. That combination gets you the lowest rate possible on your refi. 90002 If you’re thinking of refinancing, we recommend doing it sooner, rather than later.In 2017, the Federal Reserve started to raise the prime interest rate. When the Fed raises their rates, so do lenders. Rates were near zero following the Great Recession, which made refinancing very beneficial. Now that rates are rising, refinance rates are higher, making it less cost-effective to refinance student loans. 90003 90002 So, if you have decent credit, do not wait! The Federal Reserve has hinted heavily that they will continue to raise rates throughout 2018. Experts predict it will happen more than once.Rates usually increase by 0.25%. So, the longer you wait, the higher rates will get. 90003 90002 Of course, you also want to consider refinancing if you significantly improve your credit. If your credit is fair now, take 6 months to build credit. Then look ask for student loan refi quotes to see what you can get. If the quotes look good, it’s the right time to refinance. 90021 90003 90004 Q: 90336 May 13, 2014 90337 How do you find the best student loan refinance companies? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https: // www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Low fees and flexible terms are key. You want to look for a company that offers the best rate at the time when you’re looking for loan offers. However, fees can quickly increase your cost. Avoid companies that charge a loan origination fee, since many reputable student loan servicers do not charge them. 90002 Also look for no prepayment penalties or early repayment fees. These mean that you pay a penalty fee if you if you try to pay off your loan faster with extra payments or larger payments.You must stick to the term of the loan exactly, which means more years in debt. If you can pay off your loans early, you should. So, you want the flexibility to do so. 90003 90002 You should also check reviews, Better Business Bureau ratings, and consumer reports. Some student lenders are well-reviewed and known for great customer service. Others are not. The good news is that private lenders are more likely to offer good customer service. Federal loan servicers like Navient are notorious for customer complaints.90021 90003 90004 Q: 90336 May 13, 2014 90337 How many times can you refinance student loans? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p=9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: There is no set limit to how many times you can refinance. Even if you use federal repayment plans, you can switch them as often as you need to. As your situation changes, you can switch between plans. 90002 Of course, when it comes to refinancing through a private lender, you need to be careful with your credit score.Each application for refinancing will create a hard credit inquiry on your credit report. Too many hard inquiries within 6 months will hurt your credit score. So, at the very least, you should spread refinancing out. Otherwise, you’ll hurt your score and will not qualify for as good of a rate. 90003 90002 Finally, realize lenders may be wary of you if you continuously refinance your debt. This is especially true if your financial situation is worse than the last time you refinanced. If you’ve taken on more student loan debt or have a higher debt-to-income because of credit card debt or other types of borrowing, then you at a higher risk of default.If a lender thinks your financial situation is getting worse, they will be more likely to reject your loan application. 90021 90003 90004 Q: 90336 May 13, 2014 90337 What does it mean to have an adjustable rate when you refinance? Debt.com 90338 90005 90002 1 90003 90002 500 90003 90002 https://www.debt.com/?post_type=page&p = 9203 90003 90336 May 13, 2014 90337 90002 Debt.com 90003 A: Adjustable rate loans can be extremely tricky to manage. When you have a fixed rate loan, the rate you get when you apply is the rate you pay through the life of the loan.That also means the payments stay the same over the life of the loan, too. You know what to expect, so your debt is fairly easy to manage. 90002 By contrast, adjustable rate loans (also called variable rate loans) have interest rates that change periodically. The timeframe for the adjustments depends on which rate index the lender uses. For example, most major student loan refinancing companies use the 1-month LIBOR (London Interbank Offered Rate) index. As the name suggests, 1-month LIBOR rates change every month.So, the interest rate on the refinanced debt can change every month, too. This is true whether you get your variable rate loan through Credible, SoFi, Citizens Bank or Laurel Road. Smaller lenders are likely to use the same index, too. To confirm, just ask any lender you get a quote from how their variable interest rates are calculated and how often they change. 90003 90002 That also means that your monthly payment requirement may change, too. That’s a lot of uncertainty for your budget! Your rates can basically change all the time without notice.Unlike credit card issuers, adjustable rate lenders are required to inform you if your rate changes. 90003 90002 Unless you have a lot of flexibility in your budget, be careful adjustable rate loans! They offer lower rates than fixed rate loans at the same credit score. However, the volatility can be too much for many borrowers to handle. Adjustable rate loans are easier to miss payments on and slip into default. So, do not use this option unless you have the means to cover those constant fluctuations! 90003 90002 Also, keep in mind that interest rates are currently on the rise.The Federal Reserve is gradually raising their prime rate. That means the interest rates on any adjustable rate loans are going up, too. If you get an adjustable rate loan, expect that the rate on your loan will gradually increase over the next year. 90021 90003 90002 Article last modified on April 30, 2020. Published by Debt.com, LLC 90003.90000 10 of the Best Student Loan Refinance Companies for July 2020 90001 90002 Our goal here at Credible is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own. 90003 90002 The best student loan refinance companies provide competitive interest rates, a wide selection of loan terms, inclusive eligibility requirements, and responsive customer service. 90003 90002 Through Credible, you can compare your prequalified rates from all of the lenders below without affecting your credit score.90003 90008 90009 90010 90011 Lender 90012 90011 90012 90011 Variable rates from (APR) 90012 90011 Fixed rates from (APR) 90012 90011 Terms (Years) 90012 90011 90012 90023 90024 90025 90010 90027 Advantage Education Loans 90028 90029 90027 Get Rates 90029 90027 90002 N / A 90003 90002 Variable APR 90003 90029 90027 90002 4.54% + 90003 90002 Fixed APR 90003 90029 90027 90002 10, 15, 20 90003 90002 Terms (Years) 90003 90029 90027 Get Rates 90029 90023 90010 90054 90002 PROS 90003 90057 90058 Offers refinancing to borrowers who have not completed their degrees 90059 90058 Offers forbearance options 90059 90058 No fees 90059 90064 90002 CONS 90003 90057 90058 No variable rate loans offered 90059 90064 90008 90072 Loan Details 90073 90010 90011 Loan Minimum 90012 90027 $ 7,500 90029 90023 90010 90011 Loan Maximum 90012 90027 $ 500,000 + 90029 90023 90010 90011 Degree Required 90012 90027 No 90029 90023 90010 90011 Min.Credit Score 90012 90027 Does not disclose 90029 90023 90010 90011 Min. Annual Income 90012 90027 $ 24,000 90029 90023 90010 90011 Eligible Loans 90012 90027 Federal, private, and Parent PLUS Loans 90029 90023 90010 90011 State Restrictions 90012 90027 Must be a U.S. citizen or noncitizen with proof of residency card 90029 90023 90116 90029 90023 90010 90027 Brazos 90028 90029 90027 Get Rates 90029 90027 90002 2.39% + 90003 90002 Variable APR 90003 90029 90027 90002 3.50% + 90003 90002 Fixed APR 90003 90029 90027 90002 5, 7, 10, 15, 20 90003 90002 Terms (Years) 90003 90029 90027 Get Rates 90029 90023 90010 90054 90002 PROS 90003 90057 90058 Offers variable and fixed rates 90059 90058 No fees 90059 90064 90002 CONS 90003 90057 90058 No cosigner release available 90059 90058 Must have a high minimum annual income 90059 90064 90008 90072 Loan Details 90073 90010 90011 Loan Minimum 90012 90027 $ 10,000 90029 90023 90010 90011 Loan Maximum 90012 90027 $ 250,000 90029 90023 90010 90011 Degree Required 90012 90027 Bachelor’s degree 90029 90023 90010 90011 Min.Credit Score 90012 90027 690 90029 90023 90010 90011 Min. Annual Income 90012 90027 $ 60,000 ($ 30,000 with cosigner) 90029 90023 90010 90011 Eligible Loans 90012 90027 Federal, private, and Parent PLUS Loans 90029 90023 90010 90011 State Restrictions 90012 90027 Must be a resident of Texas 90029 90023 90116 90029 90023 90010 90027 Citizens Bank 90028 90029 90027 Get Rates 90029 90027 90002 2.49% + ¹ 90003 90002 Variable APR 90003 90029 90027 90002 3.20% + ¹ 90003 90002 Fixed APR 90003 90029 90027 90002 5, 7, 10, 15, 20 90003 90002 Terms (Years) 90003 90029 90027 Get Rates 90029 90023 90010 90054 90002 PROS 90003 90057 90058 Offers variable and fixed rates 90059 90058 Offers refinancing to borrowers who have not completed their degrees (so long as you have good credit and are no longer enrolled in school) 90059 90058 No fees 90059 90064 90002 CONS 90003 90057 90058 No disability discharge offered 90059 90064 90008 90072 Loan Details 90073 90010 90011 Loan Minimum 90012 90027 $ 10,000 90029 90023 90010 90011 Loan Maximum 90012 90027 $ 350,000 (depending on degree type) 90029 90023 90010 90011 Degree Required 90012 90027 No 90029 90023 90010 90011 Min.Credit Score 90012 90027 n / a 90029 90023 90010 90011 Min. Annual Income 90012 90027 $ 24,000 90029 90023 90010 90011 Eligible Loans 90012 90027 Federal, private, and Parent PLUS Loans 90029 90023 90010 90011 State Restrictions 90012 90027 None 90029 90023 90116 90029 90023 90010 90027 College Ave 90028 90029 90027 Get Rates 90029 90027 90002 3.64% + 90313 2 90314 90003 90002 Variable APR 90003 90029 90027 90002 4.64% + 90313 2 90314 90003 90002 Fixed APR 90003 90029 90027 90002 5 to 20 90003 90002 Terms (Years) 90003 90029 90027 Get Rates 90029 90023 90010 90054 90002 PROS 90003 90057 90058 Offers variable and fixed rates 90059 90058 No fees 90059 90064 90002 CONS 90003 90057 90058 Can not be a resident of Maine 90059 90064 90008 90072 Loan Details 90073 90010 90011 Loan Minimum 90012 90027 $ 5,000 90029 90023 90010 90011 Loan Maximum 90012 90027 $ 300,000 (depending on degree type) 90029 90023 90010 90011 Degree Required 90012 90027 Bachelor’s degree or higher 90029 90023 90010 90011 Eligible Loans 90012 90027 Federal, private, and Parent PLUS Loans 90029 90023 90010 90011 Min.Credit Score 90012 90027 n / a 90029 90023 90010 90011 Min. Annual Income 90012 90027 n / a 90029 90023 90010 90011 State Restrictions 90012 90027 Can not be a resident of Maine 90029 90023 90116 90029 90023 90010 90027 ELFI 90028 90029 90027 Get Rates 90029 90027 90002 2.39% + 90313 3 90314 90003 90002 Variable APR 90003 90029 90027 90002 3.19% + 90313 3 90314 90003 90002 Fixed APR 90003 90029 90027 90002 5, 7, 10, 15, 20 90003 90002 Terms (Years) 90003 90029 90027 Get Rates 90029 90023 90010 90054 90002 PROS 90003 90057 90058 Offers variable and fixed rates 90059 90058 Offers referra 90059 90064 90029 90023 90443 90116.90000 Student Loan Refinancing Benefits | Citizens Bank 90001 90002 Whether you want to refinance student loans individually or consolidate your loans together, student loan refinancing may help make your monthly payments more manageable, and possibly reduce your interest rate or overall debt. With some loans, you have the option to consolidate federal and private student loans together, which could allow you to make one easy payment a month. 90003 90004 Reducing student loan payments by refinancing 90005 90002 Refinancing allows you to adjust the terms of your individual student loans.This could result in a lower interest rate or extended repayment period, thereby reducing your student loan payments. This may make your monthly payments more manageable, and allow you to allocate any freed-up funds directly to the principal so you could pay down the loan faster — which could improve your credit score. 90003 90002 Let’s say you had one loan you were closer to paying off. One of the benefits of refinancing is you could adjust this loan individually while making regular payments on your other loans or consolidating them separately.If you’re focused on lowering your debt-to-income ratio — especially in order to make a large purchase like a home or a car — the credit benefits of refinancing may help you meet your goals. 90003 90002 There are important factors to consider when refinancing your federal student loans specifically, as those loans offer a unique set of repayment benefits, which would be negated by refinancing to a private loan. This is where you could benefit from refinancing loans individually; you could refinance outstanding private student loans while keeping your federal loans separate to take advantage of income-based repayment or student loan forgiveness programs.Of course, there are several factors to consider before refinancing student loans. 90003 90004 Simplifying student loan obligations with consolidation 90005 90002 Federal student loan consolidation simply combines your outstanding loans into one loan. The interest rate is based on the weighted average of the rates on the loans you consolidate. While this simplifies repayment, it does not necessarily help when you’re interested in reducing student loan payments. 90003 90002 When you choose student loan consolidation with a private lender, you may be eligible for a lower rate based on your credit score, plus receive the benefit of combining your loans into one easy-to-manage monthly payment.You could even combine federal and private student loans in your new loan as long as you’re comfortable exchanging the benefits of the existing loans. If you’re interested in seeing how the benefits of consolidating student loans could apply to you and what your new loan would look like, use our Loan Estimator tool. 90003 90004 Refinance for a lower variable rate or lock in a fixed rate 90005 90002 Interest rates are based on credit scores with most private lenders, and the variable rate you receive may be lower than the rate on your current loans.However, it is possible for that variable rate to go up or down each month. If the rate goes up, your monthly payments will go up, too. 90003 90002 If your current student loans have a variable interest rate, your monthly payment can change as the rate changes. If you refinance into a fixed-rate loan, you’ll have the certainty of a consistent monthly payment. However, the fixed rate you get today will likely be higher than the variable rate you have right now. Your new monthly payment may be more than your current monthly payment, but your payment will never increase.90003 90002 Applying for a private refinance loan could help you reduce student loan payments and gain more control over your debt. You could potentially take advantage of lower student loan interest rates, longer loan terms, and lower monthly payments to free up funds and focus on what’s next. 90003 90004 More information 90005 90002 We are committed to helping you reach your potential. To learn more about how refinancing your student loans could help you reach your saving goals, check out our refinance calculator, call 1-877-405-2262 to speak with one of our Student Lending Specialists, or visit your nearest Citizens Bank branch.90003.