What does "refinancing" a private student loan mean?
Refinancing is the process of getting a new loan to replace your existing loan(s), usually to get a lower interest rate and/or different loan terms. Refinancing is intended to save you money – monthly or over time – and to give you budget flexibility.
How does student loan refinancing work?
If you’re approved for a refinancing loan, the money from your new loan will be used to directly pay off your existing loan(s). Then you’ll pay back your new refinanced student loan on the terms to which you’ve agreed.
What is the difference between refinancing and consolidating student loans?
Consolidation is a type of refinancing. Consolidation occurs when two or more loans are combined into a single loan. In doing so, the rate and/or terms of the loan typically change. You don’t have to consolidate in order to refinance; you can refinance a single loan to lower the interest rate or change the term of that one loan. Through the SEIU Student Loan Refinance Program, you can refinance a single loan, or you can consolidate and refinance multiple loans.
Can I refinance my federal student loans?
Although you can refinance a federal student loan with a private student loan, doing so will forfeit any special benefits such as income-based repayment and loan forgiveness programs that are available only on federal student loan debt. Before you consider consolidating, check the SEIU℠ Student Loan Forgiveness Navigator to see if your federal student loans qualify for any special programs that could help you reduce or eliminate that debt.
How do I apply to refinance my student loan(s)?
You can apply for the SEIU Student Loan Refinance Program by logging in to this site and clicking on the orange “Get Started” button above. You’ll be directed to the College Ave Refi website, where you’ll be asked to enter information about yourself and your existing student loans, including the loan servicer’s name, the account number, and the amount you want to refinance. (College Ave does not take applications by phone because required disclosures are presented during the online application process.)
What do I need to be eligible to refinance my student loan debt?
To qualify, a borrower must be at least 18 years old, be a U.S. citizen or permanent resident, have graduated from a selection of Title IV eligible undergraduate or graduate programs, and meet College Ave Refi’s underwriting requirements.
Is a cosigner required to refinance a student loan?
A cosigner is not required as long as you qualify for the loan on your own.
How long does it take to get approved for a loan?
Most people will get an instant decision upon submitting a completed application.