We get it, student loans are complicated. Here at PenFed we make refinancing your student loans a painless, stress-free process that'll make you proud of making the decision to refinance. So, what does student loan refinancing even mean?
Student loan refinancing is the process of obtaining a new loan at a new interest rate. When you refinance, your new lender pays off your old loan and gives you different repayment terms that hopefully work better for your situation. When we talk about consolidation, we're referring to the process of combining multiple loans into one manageable payment, as a result of a private bank refinancing. This differs from a Direct Consolidation Loan, which is when the federal government allows you to combine your federal student loans into one loan with one interest rate. Those with private school loans are not eligible for the program. This program does not offer a better interest rate; the fixed interest rate provided is the weighted average of the current interest rates on your loans. You can only get a lower interest rate through refinancing.
Refinancing your student loans can be a smart strategy for a young professional trying to get out of debt faster or trying to reduce their monthly payments. With refinancing, you have the power to adjust your term as well as to potentially lower your interest rate. It's also easier to keep track of your loans, as you no longer have to make payments to different loan servicers. Thanks to student loan refinancing, borrowers are provided with options and opportunities. At PenFed, we want you to enjoy the freedom of moving forward with your life, and we can do this through our refinancing program.
Forging towards a new career, taking out a mortgage, or even planning to grow your family make it necessary for you to take full control of your financial situation. It may be the right time to refinance your student loans if smaller monthly payments with a longer repayment period seem more ideal. Whether it be federal, private, or Parent PLUS loan, we pride ourselves in our low rates and easy to understand system. You have already worked so hard earning your degree, why let the burden of high-interest rates be an obstacle on your path to success? At PenFed, we take your savings just as serious as you do.
We're on a mission to support professionals who have taken steps towards building a better future. Curious if you qualify? We're ready to help you explore options for graduates who have maintained a credit score of 700 or higher (670 for borrowers with a cosigner) with at least one outstanding loan. Hard work pays off; you've already done your part, let us reward your achievements.
As you saw, there is an abundance of potential benefits to student loan refinancing. Smaller monthly payments allow you to save for that next special step in your life. Freeing yourself from debt faster gives you back the control, to focus on what really matters to you. Many borrowers can save using PenFed; how much will refinancing save you?