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What to Expect When You Refinance Your Student Loans?

Published on Author Purefy Staff

Lowering Monthly Payments on Student Loans

So, you’ve made the decision to simplify your life, lower your interest rate, and refinance your student loans through PenFed. Congratulations, you’ve taken the first step! But what’s the process like once you submit your application? Let’s dig in.

Approval – Student Loan Refinancing:

If you meet our eligibility criteria and your application is preapproved, you will be able to start submitting documents. You will receive an email outlining the documents you need to submit, and you can also review this list in your online account. Once you gather all of your documents, they can either be uploaded directly to your profile or sent to your PenFed representative via email. You can even snap a photo of the document with your phone and send it to us that way, or take a screenshot – no scanning necessary!

Here is what you will need:

  • Your government-issued ID
  • Copy of your diploma (or transcript, as long as it lists your name, graduation date, and degree received)
  • Paystub dated within the last 30 days
  • 10- to 30-day payoff statement from your current servicer
  • PenFed membership application

We may also need different income documentation, depending on the income source. If you’ve gotten married or changed your name since you took out your student loans, we’ll need proof of that, too, unless the change is reflected on your credit report.

What is a payoff statement and how do I get one?

A payoff statement is a document from your servicer which shows the amount of money you would owe at a date 10 to 30 days in the future, to completely close out your loan. This is different from your monthly statement because it takes daily interest into account. We request a payoff statement between 10 and 30 days into the future to account for processing time.

Some lenders have an option on their site to request a payoff statement; other lenders have a payoff calculator. If you can’t get an official payoff statement, we can accept screenshots of the payoff calculator, as long as your name and account number are visible. If there is no option for either method on your lender’s site, you will need to contact them directly to request a payoff amount.

My docs are in, now what?

Once you upload or email your documents, it’s time to relax for a day or two while everything is processed by our underwriters. If any of the documents are insufficient or if something else is needed, we will reach out to you. If you’ve uploaded your documents directly to the site but don’t see them right away, don’t worry. It sometimes takes a day or two for everything to be reflected on your profile. You will receive an email confirmation once everything has been processed, and you will then be able to log into your account and select your rate and term.

Can I get an additional discount on the rates I was offered?

PenFed doesn’t offer any additional discounts to the rates you are quoted. When comparing PenFed to other lenders that may offer loyalty or ACH discounts, you can compare PenFed’s rates to the other lenders’ discounted rates. With that in mind, you can think of those discounts not as an opportunity to pay less, but an opportunity to pay more. PenFed always offers you their best rates, whether or not you decide to open a checking account or use ACH to pay your monthly bill.

Still have questions?

You can call, text, or e-mail your PenFed representative, and they will answer any questions you may have. We’re here to help make this process go as smoothly as possible!

What are you waiting for? Get started here.