Refinance rates with Splash Financial start at 1.88%.
Checking your rates won’t affect your score.
When I graduated from college, I wasn’t aware that student loan refinancing was an option. Instead, I just got set up with the Standard Repayment Plan for my $20,000 student loan and prepared to dutifully make payments for the next decade.
But once I learned about refinancing, I realized I could save money and at the same time, pay my loan off faster. Instead of wasting my paycheck on interest, I could keep more of it for myself.
Still, I was nervous about making the wrong financial move. Here’s how I addressed my concerns and refinanced my student loan for better terms.
I weighed the pros and cons of refinancing
Before making any permanent changes to my student loan, I did a bunch of research on refinancing. I learned how student loan refinancing works and weighed the pros and cons.
The pros were fairly straightforward. Refinancing could leave me with lower monthly payments and a more competitive interest rate. Over the years, I could save hundreds — if not thousands of dollars — on student loan interest.
I could also move away from my old loan servicer, Navient. Although I’d never had problems myself, I knew other borrowers had serious complaints about the company. Switching to a different lender felt like another benefit in my eyes.
But I would also be giving up a few things. By refinancing, I would be changing a federal student loan of $20,000 into a private one. As a result, I would lose access to federal programs such as income-driven repayment and forbearance. If I were to lose my job, I wouldn’t have the same federal protections to help me out.
Ultimately, I felt confident about my ability to pay back my loans. I had a steady income, and since I was a few years out of college my credit score was in decent shape. A strong credit score could mean competitive terms on a refinanced student loan.
The pro of saving money outweighed the con of privatizing my student loan. Confident with my decision, I kicked my plans to refinance into action.
I checked my rates with several lenders
My first step toward refinancing involved applying for a rate quote with various lenders. This rate check let me compare preliminary offers. It didn’t affect my credit score at all.
Although each rate quote application looked a little different, the process only took a few minutes. Most of the lenders asked for my name, salary, education level, and loan amount.
Then, they showed me preliminary offers for loans. Interest rates varied depending on the length of the repayment plan and whether they were variable or fixed.
After comparing my offers, I saw that Citizens Bank offered me the lowest interest rate. By choosing Citizens Bank, I would save the greatest amount of money on my student loan.
I compared my new student loan with my old one
My $20,000 student loan from Navient had a 5.96% interest rate, and I was chipping away at it on a 10-year plan. My payments were about $250 per month.
My research on refinancing, though, motivated me to pay off the loan faster. I couldn’t crush through $20,000 in one year, but I could swing a five-year repayment plan.
Citizens Bank offered me a five-year plan with a 4.99% fixed interest rate. By paying $100 extra per month, I’d get out of debt years ahead of schedule. Plus, I’d get an additional 0.25% interest rate deduction by setting up auto-pay.
Before selecting this offer, I used a student loan refinancing calculator to compare my old loan with the new one. By reducing my rate from 5.96% to 4.74% (with the rate deduction), I would save almost $2,700 in interest over the life of my student loans.
That amount of savings made the decision a no-brainer. I was ready to refinance my $20,000 student loan with Citizens Bank.
I filled out a student loan refinancing application
Once I chose my new loan terms, it was time to submit a full application. I entered my name and contact information, as well as details on my education.
To confirm this information, I had to upload two main documents: a recent pay stub from my employer and a billing statement from my student loan.
I was able to access both of these documents online. Then, I simply uploaded them to the Citizens Bank application.
Finally, I read over the forms to make sure everything was correct. At this point, all I had to do was hit “submit” and wait for approval on my refinanced student loan.
The entire refinancing process took a few weeks
Once I submitted my application, I didn’t have to do anything but wait to hear from Citizens Bank. After a few weeks, I got an email that my loan was approved.
I could log into my account and set up auto-pay from my bank account. By setting up auto-pay, I knew I wouldn’t miss a payment as I transitioned from Navient to Citizens Bank.
Within the month, I was notified that my Navient loan had been closed. I logged into my Navient account and confirmed that the new balance was indeed $0.
From start to finish, the entire refinancing process took less than a month. Now, I don’t have to think about my student loan, unless I want to throw an extra payment at it from time to time.
I’m confident that I have the best terms currently available to me, plus I’m on a repayment plan that makes sense for my income.
Getting out of student loan debt
The biggest lesson I learned from this process was how important it is to be proactive about your student debt. You don’t need to passively accept the standard plan you get straight out of school.
Instead, choose a plan that best fits your individual situation. If you can swing it, you could pay your student loans off ahead of schedule. Just imagine how good it will feel to never have another student loan bill.
However, refinancing isn’t the best financial move for everyone. Federal student loans, for instance, have some protections that most private lenders don’t offer. But if you feel sure you can pay back the loan, refinancing can make it easier.
For me, this process was empowering. By taking control of my student debt, I feel more confident about handling my money and taking control of my financial future.
This report was originally published August 9, 2017.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.88% – 6.15%1||Undergrad & Graduate|
|1.88% – 5.64%2||Undergrad & Graduate|
|2.50% – 6.85%3||Undergrad & Graduate|
|1.89% – 5.90%4||Undergrad & Graduate|
|2.25% – 6.39%5||Undergrad & Graduate|
|1.88% – 5.64%6||Undergrad & Graduate|
|1.90% – 5.25%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.13% – 5.25%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of June 1, 2021.
2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.59% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Refinancing Loan Cost Examples
These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.
One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.
© 2021 Earnest LLC. All rights reserved.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
5 Important Disclosures for SoFi.
Fixed rates from 2.74% APR to 6.74% APR (with autopay). Variable rates from 2.25% APR to 6.39% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
6 Important Disclosures for Navient.
7 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.
8 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.