Category: Finance

Top Reasons You Should Refinance Your Student Loans

By | July 7, 2017

The latest statistics show that student debt keeps increasing. The class of 2016 left college with debt that was 6% higher than the previous ones. Considering that these statistics do not even include the loans that parents took to help their children through college, there is no doubt that everyone needs a better way to manage their debts.

According to financial experts, refinancing is one of the best ways through which you can do this. It simply means that you transfer the debt from the initial lender to another one. The following are the main reasons you should refinance your student loans:

Reduced monthly payments

shghgss6When you refinance your student loan, you lower the monthly payments. This is because you will get a higher interest rate compared to when you stick to the initial lender. With higher interest rates, you will end up saving a lot of money on the life of the loan. This promises a major relief on your financial burden especially if you do not earn a top salary, and have been struggling to repay your loan. An additional advantage is that you will get an opportunity to improve your credit score especially now that your financial status has changed since you last applied for loans.

You can release a cosigner from the loan

If your loan involved a cosigner as is the case when you borrow from private lenders, refinancing it can help you to release them from the loan. This is because you can now be eligible to refinance the loan on your own. This is one of the most important reasons why you should refinance your student loans because cosigners are often close family members, especially parents. By relieving them of this responsibility, you can let them concentrate on their own finances as you concentrate on improving your own financial status.

Flexible payment terms

Refinancing your student loan allows you to choose how long you want it, and if you need fixed or variable interest rates. With variable rates, it is quite risky because they can go up any time. However, it also can make you pay less especially if the rates drop significantly. There also are lenders that will allow you to switch between fixed and variable rates without charging you any extra costs. Your choice should be based on what is most suitable for you. As you will notice, everyone has unique financial capabilities and needs. The rates that are suitable for you may not be the ones that others are looking for.

dhgdhd64If you are not sure of where to refinance your student loans, there are lots of private lenders that you can choose from. Any local bank or credit union can help you to do this. However, you need to carry out a little research just to know about the benefits and rates of every option before choosing it. You also may want to look at the number of loans that they have refinanced over the recent years just to know if they are popular among their student loan holders.

One of the best personal finance companies that you can contact is SoFi. It has helped a lot of borrowers in the past, and up to these days, it still continues to widen its network. In fact, SoFI partners with Jet Blue, and with this alone, you can tell that the said company is getting stronger than ever.

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The advantages of private student loans

By | July 7, 2017

Education in its entirety is a journey; one that you can never predict its ups and downs. Finance is among the reasons why most people drop out of college and abandon their aspirations to transform into academic bastions. If your family can no longer contribute toward your education and neither do you qualify for aid as a result of federal student loan limits, not all is lost. You can still forge a brighter future by embracing the advantages of private student loans. Read further and find out more how this type of loan will benefit you.

Easy approval

dhdhd74Private student loans are often granted by an array of financial institutions. These are special loans given that they are often extended to people who don’t meet basic requirements that one needs to get a loan. Private student loan lenders understand that most students don’t have tangible assets and other things that can stand in for them as security against monetary loans. For this reason, all you need is to prove that you’re a U.S. citizen by providing your Social Security Number, driver’s license or a copy of your monthly utility bill, making the loan application process is therefore easy and straightforward.

Low risk

Interest rates are always a factor to consider when taking any loan. Other than the payback period, it’s one of the aspects of a loan that can enslave you. Private student loans are designed to push aside this snare by incorporating fixed and variable options in their loan schemes. Subsequently, you’re allowed to choose a credit plan that fits your future financial plans. As a student who is looking for a way out of the current and future financial pitfalls which, may come about as result of tight loan payback schedules with affordable interest rates, the advantages of private student loans.

The co-signer factor

Under normal circumstances, your chances of getting a loan peg on your ability to find a high-grade co-signer. This can be a challenge especially if the reason behind your search for an education loan stems from the fact that most members of your family are already reeling in debt. Considerate financial firms that offer student loans usually overlook this factor and allow you take on any co-signer provided that he or she has good credit ratings. It’s however prudent to engage a co-signer who is not too deep into personal and other forms of debt because though student loan firms are flexible, they are also cautious about their lending activities.

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No restrictions

Most student loan lenders will pay the money directly into your bank account. They don’t make follow ups regarding your spending activities because they know that you may need some of the money to cater for education-related expenses which may include:

• Food

• Accommodation

• Educational trips

• Purchase of learning materials

• Clothing and even parking pass

The loans are subsequently meant to help you have all you need to push through your school life with a tinge of ease by taking care of one of the possibly stressing factors for students – finances. With these said, don’t throw caution to the wind and misuse your loan grant since a loan is a loan and no matter how good the terms are hence, you’ll be called upon one day to honor it.

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