Got a private student loan through SunTrust? Did you know you can refinance that loan—and potentially score a lower interest rate? You absolutely can.
If you refinance your SunTrust loan and you've already graduated, you have to pick a new lender. That's because SunTrust doesn't offer refinancing, unless you're applying for a new student loan with Suntrust and you want to roll previous student loan balances into your new loan.
What is refinancing—and why would you want to do it?
Refinancing means replacing an existing loan with a new loan, through a new lender. People do this all the time with other types of loans—like mortgages—to take advantage of lower interest rates. You can do it with your student loans, too.
There are several reasons why you might want to consider refinancing.
To get a lower interest rate and save money
If you took out your original SunTrust loan while you were in college, your credit score may have improved since then—which means you might qualify for a better interest rate now.
This strategy works—our data shows people who refinance save around $16,183 on average. Especially if you’ve kept your credit score sterling, it’s worth it to see if other lenders will give you a lower rate.
To replace multiple loans with one loan
When you refinance, your new lender pays off all the loans you’re refinancing—and issues you a new loan. You now make payments only to one lender, not many. This makes your loan easier to track and manage.
To change your loan payment term
Maybe you want to increase the length of your payment period to reduce your monthly payment—or pay off your loan faster to save on interest.
Either way, refinancing is a surefire way you can change the payment terms on a private student loan.
See also: Everything You Need to Know About Student Loan Refinancing
How do I find a new lender to refinance my loan?
If you're unable to refinance with SunTrust, some shopping around is in order.
For most people, the first criteria is how low the new interest-rate offer is. You can get a ballpark idea by using a refinancing calculator.
Once you’ve narrowed your search, you can apply with several different lenders. They’ll ask you some questions about your financial life, do a soft pull on your credit—this won’t show up on your score—and make you an initial offer.
From there, you can pick the offer you like best, and the lender will handle all the paperwork of paying off your old loans and issuing a new one.
What other criteria can I use to pick a lender?
Apart from the interest rate, you might want to consider:
Customer service
What are people saying about this lender’s services? Look at Yelp reviews and ask your friends.
Horror stories are definitely out there, but some lenders do have a good reputation for customer service. (CommonBond, for instance, has won awards for theirs).
Types of loans
Most lenders offer fixed- and variable-rate loans for various interest rate ranges. A few offer other options (for instance, CommonBond offers a hybrid fixed-and-variable-rate loan).
See also: Choosing a Fixed or Variable Interest Rate
Extra perks
Some lenders have a little something extra that makes them worth a second look.
For instance, SoFi offers coast-to-coast networking events, yoga, wine tastings, and entrepreneurial seed funding; CommonBond has a strong social promise angle; and LendKey will hook you up with over 13,000 local community banks and credit unions to score the lowest rate.
Refinancing can make a big difference in your financial life. You don’t have to stick with SunTrust or any of your other current lenders—you can hit the reset button and score a better interest rate.
Check out Refi Ready to see how much you could save.
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Special offers for medical resident and fellow refinance products
- Fixed rates: 2.59% - 8.49% APR
- Variable rates: 2.49% - 11.72% APR
- Minimum credit: 650
Splash Financial is a leader in student loan refinancing with some of the lowest fixed in the industry which can save you tens of thousands of dollars over the life of your loans. No application or origination fees and no prepayment penalties. Splash Financial is in all 50 states and is intensely focused on customer service. Splash Financial is also one of the few companies that offers a great medical resident and fellow refinance product. You can check your rate with Splash in just minutes.
- Low interest rates – especially for graduate students
- No application or origination fees. No prepayment penalties.
- Co-signer release program - you can apply for a cosigner release form your loan after 12 months of on-time payments
- Specialty product for doctors in training with low monthly payment
Click here to see more of Splash's offerings and to see how you can save money.
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SoFi is the leading student loan refinancing provider.
- Fixed rates: 3.99% - 8.24% APR
- Variable rates: 2.49% - 7.99% APR
- Minimum credit: 650
$30 billion+ in refinanced student loans. SoFi has some of the lowest interest rates and, unlike the other lenders we reviewed, there's no maximum on the amount you can finance. Some state restrictions may apply.
- Serious savings: Save thousands of dollars thanks to flexible terms and low fixed or variable rates.
- No hidden fees, no catch: No application or origination fees. No pre-payment penalties.
- Fast, easy, and all online: Simple online application and access to live customer support 7 days a week.
- Access to member benefits: SoFi members get career coaching, financial advice, and more—all at no cost.
- 98% of surveyed members would recommend SoFi to a friend
Save thousands on your student loans and pay off your loans sooner. Find your rate.
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Works with 300+ community lenders for higher approval chances
- Fixed rates: 2.49% - 7.75% APR
- Variable rates: 1.90% - 5.25% APR
- Minimum credit: 660
Connecting student borrowers to a network of over 300 community lenders with low interest rates. By partnering with these lenders, LendKey is able to give consumers direct access to the best rates available from the most borrower friendly institutions. As the servicer of all loans obtained through its platform, you can rest easy knowing your personal information will be safe and that the best customer service team will be ready to answer your questions from application until your final payment.
- Lightning fast rate check - 2-minute rate check with no impact on your credit score
- More lenders, more options - see the best offers from over 300+ community lenders for higher approval chances
- Life of loan relationship - With LendKey, your personal information will never be sent or passed on to third parties. Their customer service team is with you from the moment you land on their website until you've completely repaid your loan.
- Unmatched benefits- Community lenders put people over profits and offer unique benefits like cosigner release after 12 on-time payments, interest only repayment options to keep monthly payments low, the largest unemployment protection period in the market, and more.
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Best for borrowers who want to customize their repayment schedule to pay off debt fast.
- Fixed rates: 3.74% - 8.49% APR (with 0.25% autopay discount)
- Variable rates: 2.49% - 7.99% APR (with 0.25% autopay discount)
- Minimum credit: 650
Using technology, data, and design to build affordable products, Earnest's lending products are built for a new generation seeking to reach life's milestones. The company understands every applicant's unique financial story to offer the lowest possible rates and radically flexible loan options for living life.
- Commitment-free 2 minute rate check
- Client Happiness can be reached via in app messaging, email, and phone
- No fees for origination, prepayment, or loan disbursement
- Flexible terms let you pick your exact monthly payment or switch between fixed and variable rates
- Skip a payment and make it up later
- Online dashboard is designed to make it easy to apply for and manage your loan
Click here to apply with Earnest and to see how much you can save.
I reduced my student loan payment by $152 per month, by refinancing thru Nitro
