Do you have an EdFinancial loan and wish you had a lower interest rate and monthly payment? If so you might be thinking about refinancing ... but if you're like a lot people, you probably don't know where to start.
There are a lot of benefits to refinancing. And while you can't refinance directly with EdFinancial, the process is still easy. You just have to go through a private lender. Let's talk about what you need to know.
The first thing to know is that you can't directly refinance your EdFinancial loans directly with EdFinancial. As a federal loan servicer, EdFinancial services your existing loan, but it has no authority to change your interest rate.
To refinance, you need to move your student loan to a private lender. This lender pays off your old debt and issues you a new loan with new loan terms.
The main benefit of refinancing comes from your lower interest rate.
Getting a lower interest rate can lower your monthly payment or save you money over the life of your loan.
On average, people who refinance lower their payments by $253 per month, or save $16,000 over the life of their loans. Refinancing can also allow you to shorten or extend your loan term.
To find out how much you can save by refinancing, check out our Student Loan Refinancing Calculator.
There are a few considerations to make before refinancing your EdFinancial loans, however.
Refinancing a federal loan with a private lender means that you'll lose federal benefits like Public Service Loan Forgiveness, forbearance, and income-driven repayment options. However, not everyone is eligible for these benefits or intends to use them.
You can research and compare lenders' rates and loan terms by visiting Best Options in 2018 to Refinance Student Loans. Some lenders also offer special financing deals for specific degree programs and have other perks.
Here are the lenders we're recommending at the moment. Click on each lender name to get an in-depth look at the pros and cons of each:
You should also consider completing an initial inquiry with your top two or three choices. This will help you get an idea of what your interest rate might be with each lender, and this initial step doesn't affect your credit score.
Now that you've chosen a lender that's a good fit for your situation, you can apply for refinancing directly on their website. You'll need to fill out basic information about your loan or loans, as well as your finances (such as proof of income). Your interest rate is based on a number of factors, like your income and credit history.
Refinancing usually a quick process, but you should keep making payments to EdFinancial until you get confirmation from the private lender that your refinanced loan has been approved.
Once you're ready to start your refinancing journey, start by comparing rates and loan terms on our lender page.
Want to know more? See also: Everything You Need to Know About Refinancing Student Loans
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.