Unveiling the A to Z of Government Student Loan Refinance Programs

Government student loan refinance programs are the alternative way to make your life better for repayment. However, these actions need deeper knowledge to prevent all the risks that make you lose in the future. Here are all the things you should know about the refinance program.

Government Student Loan Refinance

If you’re struggling with student loan payments, you don’t have to worry because the answer is refinancing. Refinancing is a way that can make your life easier. Basically, it will lower your monthly payments and get the best score of interest rates. 

However, before deciding on some serious matter, you should know that refinancing is not the best choice for everyone. You can lose your federal loan protection and access to various alternative repayment plans and forgiveness programs. Thus, before moving forward, it is a nice move to consider all the things about refinancing. 

When you refinance the student loans, you will trade in your existing loan with a new loan from a private lender. These lenders will observe things from you, such as your credit score, your income, and your debt. It helps them to decide which rate to offer you.

Hence, when is the best time to refinance your government loan? If you’re okay with taking some risks, think about refinancing government loans. If you don’t rely on those federal loan perks, refinancing your student loans might save you money in the long run, especially if you have high-interest federal loans.

When you switch your federal student loans to a private lender through refinancing, you will let go of all those existing federal loan protections. If you’re a federal student loan borrower, it’s important to know what you’ll lose when you switch to a private company. 

Additional Protection You Might Need to Face the Risks

Nonetheless, to address this issue, you can use some additional protection so that the risks you will face can be more easily managed. Here are some additional protections that you might consider:

• You can postpone your payments with deferment and forbearance for up to three years. Plus, if you have subsidized federal loans, you won’t be charged during deferment.
• You can use income-driven repayment plans that adjust your monthly payment according to changes in your income.
• There are forgiveness programs for specific jobs, like Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness.

You can choose one of those additional protections to face the risks after refinancing your private loan. Moreover, you can choose private lenders that offer their own protections. Certain private lenders offer their own borrower payment protections. 

While not as thorough as federal loans, these protections offer some security. Thus, you don’t have to worry about your affairs because you did the best to protect all of them securely. 

Top 6 Best Student Loan Refinance Companies

Refinancing either federal or private student loans, or both, can speed up your student debt payoff and aid your financial goals. However, consider the impact of the pause in federal student loan payments before making a decision to refinance. Here is a list of the best student loan refinance companies that you can consider.

1. SoFi

This company offers the borrower some protections for you. Those protections include unemployment protection, loan deferment, and the first six months of the existing grace period on loans being considered for refinancing.

The fixed rate is about 5.24% to 9.99% and the variable rate is about 6.24% to 9.99% with the loan terms 5, 7, 10, 15, and 20 years.

2. Splash

Splash offers get low rates from banks and credit unions. Checking these rates won’t harm your credit score, and there are no fees or penalties for refinancing. They claim to help you to deal with debt with low rates. Splash offers a fixed rate of about 5.34% to 8.73% and the variable rate is about 7.35% to 7.35%.

3. Earnest Student Loan Refinancing

This company offers no origination fees for refinancing, and you won’t encounter late fees or disbursement fees. You also get a 0.25% autopay discount. When you prequalify, it’s just a soft credit check, and there are no prepayment penalties. You’ll have a 9-month grace period, and even if you have fair credit, you can still qualify.

The fixed rate is about 4.96% to 9.79% and for the variable rate is about 5.72% to 9.74% with flexible loan terms anywhere between 5 to 20 years.

4. Citizens

Citizens are great if you are looking to add a co-signer for your refinanced student loan. You can also apply to release your co-signer after 36 on-time payments. Plus, they offer a big 0.50% autopay discount, which is more than what most lenders give at 0.25%. Even better, there is no origination fee to refinance.

The company’s fixed rate is about 6.80% to 10.99% and the variable rate is about 7.07% to 12.41% with loan terms for 5, 7, 10, 15, and 20 years.

5. Education Low Finance

ELFI is unique because it lets you combine private and Parent PLUS loans. Parents can also refinance to transfer the student loan to their child’s name. Also, they provide student loan advisors to assist you through the refinancing process. It is the best for parents.

The fixed rate is about 5.48% and the variable rate is about 5.28%. Additionally, the loan terms range from 5 to 20 years for student loan refinancing and 5, 7, or 10 years for parent loan refinancing.

6. Laurel Road

Laurel Road is a top choice for student loan refinancing, especially for medical students. During residency, you only pay $100 per month, and the interest doesn’t add up. They also have free consultations with student loan specialists. This is the best company for medical students.

The fixed rate is about 5.24% and the variable rate is about 4.99%. You can pick loan terms of 5, 7, 10, 15, or 20 years with the option for other terms under 20 years based on approval.

Consider Getting Government Student Loan Refinance Programs Now!

Government student loan refinance programs will give you many benefits. However, you should consider all the risks that follow once you decide to refinance. Consider it thoroughly and get the benefits for the repayment. Therefore, you won’t get any disadvantage for refinancing your loan.