How to Refinance Your Student Loan

If you want to refinance your student loan you are definitely not alone. College is becoming more and more expensive by the year. If you have attended a public or private school for the last four years, the chances are good that you have several thousand dollars worth of student loans to your name. Refinancing your student loans from the start can help you consolidate them all in a single location and save you money. With a lower interest rate you can effectively save yourself thousands of dollars over the long term.

Local Lenders

The first place that you should start your journey of refinancing your student loans is in your local market. Often, the best place to find a great deal on a student loan refinance is right in your own home town. Check out your favorite bank first. Ask them for their rate on a student loan refinance. Ask them if they have any special programs for student loans or if they have any other reason for doing business with them.

After you visit your local banks, another place in town that you might want to investigate is the credit union. Credit unions are sometimes the best places to refinance with because of their low interest rates. Credit unions are non-profit organizations. Therefore, they do not pay taxes to the federal government. This saves them thousands if not millions of dollars every year compared to your local bank. This means that they can then pass this advantage on to you in the form of lower interest rates. Sometimes, they will give you an even lower rate if you open a checking account with them and have the monthly payment deducted from the account. While it may only be a few fractions of a percent off, it can still help you in the long run.

Online Search

The next place that you will want to look is online. You can do an online search and find several student loan refinancing companies available. With this resource, you can often find a fantastic rate that is being offered. You can even research about the company and find out if they are who they claim to be. You can check their customer service record and find out everything you need to know.

Application and Processing

Once you select a lender, you will be asked to fill out an application. If you are using an online lender, you will be able to fill out the application online. They will want to know everything about you including what debts you are asking to refinance. They will require loan numbers and amounts so that they will know exactly what loans they are paying off. They will run your credit and take a look at your score. If your credit score looks good, they will usually extend you the loan that you need. They will then give you the money you need to repay your existing student loans.

 


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