Student loan refinance companies lend you money to pay off existing student loans, and then become your new student loan company. Refinancing student loans can allow you to lower your student loan interest rate or to lock in an already-low rate on a variable rate loan. Refinancing can lower your monthly payment to allow you to keep more of your paycheck, or can provide you with payment plans so your payments are easier to make. However, all student loan refinance companies have slightly different rules, terms and conditions so you need to understand your different options for student loan refinance companies.
Options for Student Loan Refinance Companies
There are two main types of student loan lenders: government lenders and private lenders.
* Government lenders are those lenders who issue loans backed by the US government. The Department of Education is one example of a government student loan lender. Other companies may be privately held companies or for-profit companies but may have an affiliation with the government that renders them quasi-governmental companies who grant government backed loans but who aren't directly a part of the government.
* Private lenders, on the other hand, issue private student loans that are not backed by the government. While these companies are still somewhat regulated by various student loan and lending laws, they are not affiliated with the government and thus may have looser requirements and regulations in regards to what interest can be charged, who can qualify for credit, and what the terms of their loans are.
Choosing the right student loan refinance companies depends a lot on your personal situation. Consider how much debt you have, and what types of loans you have. Government lenders, for example, will not allow you to refinance or consolidate private loans. Government lenders may have lower interest rates or more favorable repayment terms, but may only allow you to refinance Stafford Loans, Plus Loans, Teach grants and other government-issued or backed loans, so if you have private loans, this may not be an option.
It is also important to note that you can refinance and consolidate your existing loans with the same company who holds those loans. Student loan refinance companies are permitted to refinance to their own borrowers in order to alter or change the terms of the loan, and in some cases, this can save time in the refinance process and make refinancing your student loans easier.
Options for Student Loan Refinance Companies
There are two main types of student loan lenders: government lenders and private lenders.
* Government lenders are those lenders who issue loans backed by the US government. The Department of Education is one example of a government student loan lender. Other companies may be privately held companies or for-profit companies but may have an affiliation with the government that renders them quasi-governmental companies who grant government backed loans but who aren't directly a part of the government.
* Private lenders, on the other hand, issue private student loans that are not backed by the government. While these companies are still somewhat regulated by various student loan and lending laws, they are not affiliated with the government and thus may have looser requirements and regulations in regards to what interest can be charged, who can qualify for credit, and what the terms of their loans are.
Choosing the right student loan refinance companies depends a lot on your personal situation. Consider how much debt you have, and what types of loans you have. Government lenders, for example, will not allow you to refinance or consolidate private loans. Government lenders may have lower interest rates or more favorable repayment terms, but may only allow you to refinance Stafford Loans, Plus Loans, Teach grants and other government-issued or backed loans, so if you have private loans, this may not be an option.
It is also important to note that you can refinance and consolidate your existing loans with the same company who holds those loans. Student loan refinance companies are permitted to refinance to their own borrowers in order to alter or change the terms of the loan, and in some cases, this can save time in the refinance process and make refinancing your student loans easier.
