Consolidating private student loans fixed interest rate

04-Aug-2019 01:01 by 10 Comments

Consolidating private student loans fixed interest rate

Once you determine which lender has the best offer (Earnest, we hope), you’ll complete a full application.

The more your financial situation has improved since you took out the loans originally, the better your refinancing offer will be.

But at Earnest, your credit score isn’t the only factor we consider when evaluating your application.

We look at data other lenders don’t (like your savings, education, and earning potential) to offer fair rates that are customized to you.

For starters, student loan consolidation (which is included in the student loan refinancing process) simplifies the management of your monthly payments.

Refinancing allows you to consolidate both your federal and private loans, select a repayment term that makes sense for you, and often lower your interest rate.

When you refinance student loans, you consolidate your existing federal and private education loans into a single loan.

This new loan does not have an origination fee and typically has a lower interest rate.

Different lenders have different credit requirements, but for Earnest, a minimum credit score of 650 is necessary for approval.

Typically, the better your credit, the lower a rate a lender will be willing to offer.

Like other forms of debt, you can refinance a student loan (both private student loans and federal student loans are eligible for refinancing).

With most lenders, you start with a rate estimate, which doesn’t require a hard credit inquiry.

You can often choose between a fixed or variable rate loan when refinancing.