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.
What is refinancing?
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.
Is refinancing worth it?
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.
Compare refinancing lenders
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.
Apply for refinancing
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
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