Why You Should Consider Refinancing Your Student Loan

Student loan refinancing is the process of switching the lender of your existing student loan with a new one, often at a lower interest rate. The new lender approves the loan amount, which is used to pay off the old lender, the remaining repayments are then made to the new lender at lower interest rates, potentially helping you save money over the remaining loan tenure. Student loan refinance has a number of benefits to offer, such as lower interest rates, reduced monthly payments, and even have the liberty to choose modified loan terms to better suit your financial situation.

Top 3 Features of Student Loan Refinance

Easy Loan Eligibility

The criteria for eligibility for an abroad education loan refinance may vary from one lender to another. However, anyone wanting to apply for refinance should have an existing education loan for higher studies in India or abroad. Borrowers should also have completed their studies and should be in the repayment phase before applying for refinancing. Working professionals with existing education loans can also apply for refinancing.

Low Interest Rates

With student loan refinance, the rate of interest is always lower than the original one. A lower interest rate can significantly reduce the total amount of money that you repay over the loan tenure. This can lead to substantial savings, especially if you have a high-interest loan. By refinancing, you can lower your interest rate and, in turn, your monthly payments, freeing up more of your budget for other financial goals.

Option to Apply with a Co-signer

If your credit score or income is not enough to qualify for favourable education loan interest rates on your own, you can apply for a student loan refinance with a co-signer. A co-signer with good credit score and history can help you secure a better student loan refinance rate of interest. This option is particularly beneficial for recent graduates who may not yet have established a robust credit history.

Refinancing your student loan can provide significant financial relief. Lowering your monthly payments through a reduced interest rate or let you avail an extended loan term.

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