If you have Mohela student loans, you may be interested in lowering your monthly payments or reducing what you pay overall. If so, refinancing may be a smart option.
Refinancing is actually pretty simple — believe it or not, you can actually complete the entire process in less than 30 minutes. You can refinance your Mohela student loans with a few steps:
Let's talk about what you need to know before you take the plunge and then discuss exactly what you need to do next.
When you refinance your student loans, you get a clean slate in terms of your interest rate and repayment term. How? You work with a new lender, who takes responsibility for your old loans and provides you new loan terms based on things like your income, credit score, and repayment history.
For most borrowers, refinancing provides an opportunity for a significant interest rate reduction. And that lower interest rate translates into serious cost savings. In fact, the average borrower who refinances saves more than $250 a month and over $16,000 during the life of the loan.
Of course, the biggest reason to refinance your student loans is the serious cost savings, but there are additional benefits worth mentioning:
Yes, you can refinance your federal student loans, just not with your federal student loan servicer. That's because federal student loans are offered at rates set by the U.S. Department of Education.
However, you can refinance student loans through a private lender.
But before you do that, it's important to think about whether you're relying on federal loan benefits like income-based repayment or loan forgiveness. If so, you would lose eligibility for those programs if you refinanced with a private lender.
Many federal borrowers aren't eligible for or don't plan to take advantage of federal loan benefits, and those borrowers are good candidates for refinancing — and the cost savings that come with it.
Plus, if you have both private and federal loans, you can refinance those together with a single private lender.
If you're going to refinance your student loans, then you definitely want to be sure you're getting the best deal for you. Fortunately, we've created a list of the best banks for student loan financing — these are well-established and innovative lenders with the best interest rates.
As you compare lenders, here are some questions to ask:
Use a refinancing calculator. Most lenders have one on their website — and so do we.
Even seemingly small interest rate reductions can save you big over the long haul. Most lenders will reduce your interest rate by 0.25% if you sign up for automatic payments. Some provide additional reductions. For instance, Citizens One knocks another 0.25% off if you have a bank account with them.
Every lender provides their own particular package, along with useful perks. Find out which are especially valuable for you — like the ability to refinance while you're still in school, release a cosigner down the road, or change your repayment term after refinancing.
Is it important to you to talk to a human being on the phone when you have a question? Do you prefer to have access to a chat function on the website? Read user reviews online and find out whether their customer service works for you.
Reputable lenders provide refinancing free of charge. An origination fee from a lender should be a red flag.
If you need a tie breaker, consider the details of each lender. For instance, Splash Financial has special programs for doctors and medical residents; Common Bond contributes to a child's education for every loan they fund; and SoFi provides networking opportunities for its borrowers.
Ready to see how much you could save by refinancing? Use our calculator to find out.
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.