If you have an AES student loan (or loans), you've probably wondered how to get a lower interest rate. The bad news: AES will not your lower your interest rate, even if you call and beg.
But there's good news, too. You can refinance your AES student loan through a private lender. Doing so can yield you a lower monthly payment or massive savings over the life of your loan. Let's talk about the steps you need to take to refinance your AES student loan.
First, a bit of background on what refinancing is and how to figure out if it's the right choice for you.
When you refinance your student loans, you choose a new lender to service your loans. That lender purchases your old loans and creates a new loan agreement with you — with new terms and a new, lower interest rate.
That lower interest rate can save you some serious cash. In fact, the average borrower who refinances saves over $250 a month and more than $16,000 over the life of the loan.
Only you can say whether you should refinance, but refinancing does have some big benefits:
You can refinance federal student loans, but refinancing is only available through private lenders.
If you're counting on federal benefits — like income-driven repayment programs or the Public Service Loan Forgiveness Program — then you may want to consider federal loan consolidation instead.
Consolidating all your loans into one through the Direct Consolidation Loan Program will result in a single monthly payment, but it will not reduce your interest rate. You will technically get a different interest rate, but it will simply be the weighted average of your current interest rates rounded up to the nearest 1/8th percent.
If you don't need the federal loan benefits and you're looking to save some money, then you can absolutely refinance your federal student loans with a private lender. In fact, if you have both federal and private loans, you can save time and money by refinancing them all together.
Shopping around for a lender can feel intimidating, so we've done some of the leg work for you. We researched the best interest rates from the most credible and innovative lenders in the industry. See our picks for the best banks for student loan refinancing.
Once you've chosen a few to compare, ask these questions:
Most lenders have a refinancing calculator from most lenders online to help you calculate your savings. To save time, use ours, where you can compare rates from several lenders all in one place.
Competition among lenders results in some pretty great benefits for borrowers. You could have the option to:
The purpose of refinancing is to save money, so find out whether they offer any special discounts. For instance, while most lenders will knock 0.25% off your interest rate for automatic payments, Citizens One will reduce your interest rate by another 0.25% if you sign up for a bank account with them.
Many lenders are now moving beyond the lending process to make positive impacts in their borrowers' lives, their communities, and around the globe.
At some point in every consumer relationship, you have a question. Will you be able to talk to someone on the phone? Read reviews online and consider giving the lender a call to get a sense of their service.
You should be able to refinance for free with any reputable lender. Steer clear of lenders that require an origination fee.
So how much could you save on your AES student loans by refinancing? Find out if you're Refi Ready.
Works with 275+ not-for-profit community lenders for higher approval chances
LendKey operates student loan programs for over 275 not-for-profit and community lenders across the country. 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.
Offers unemployment protection and career/coaching/networking
SoFi, which stands for “Social Finance,” was created by a group of Stanford business students who found themselves with a mountain of debt after graduation. They set out to change the student loan industry and help borrowers like themselves to get lower interest rates. SoFi has some of the lowest interest rates and, unlike the other lenders we reviewed, it has no maximum amount you can finance. However, Nevada residents can’t currently refinance with SoFi. Minimum loan balances are higher in Arizona, Massachusetts and Pennsylvania due to state laws. Additional state restrictions may apply.
For every loan they fund, they contribute to the education of a child in need
CommonBond was founded in 2011 by three MBA graduates from the University of Pennsylvania’s Wharton School who wanted to help their peers escape from high-interest student loan debt. Its original focus was on grad students, but it has since expanded to cover undergrads as well.
Of all the companies we reviewed, CommonBond has some of the best customer service. The company prides itself on being easy to reach by email, phone, or live chat. It offers networking events, expert panels, insider newsletters, and even has a program help borrowers who lose their jobs to find new ones. CommonBond also makes you feel good about choosing to refinance with them by donating money to an education nonprofit for each loan they write.
Get a personalized review of your refinancing options with CommonBond today.
Earnest empowers people with the financial captial they need to live better lives.
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.
Click here to apply with Earnest and to see how much you can save.
Operates in all 50 states; 2nd largest student loan refinancing lender
Laurel Road is a national online lender with customers in all 50 states, the District of Columbia, and Puerto Rico. Many of our non-bank competitors are not able to lend in all 50 states.Laurel Road has grown to be the second largest player in the student loan refinancing space in large part because of our reputation as the go-to low rate provider.
Special offers for medical resident and fellow refinance products
Splash Financial is a leader in student loan refinancing with new rates as low as 3.25% fixed APR 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.
Click here to see more of Splash's offerings and to see how you can save money.