Introduction
Greetings everyone, and welcome to our journal article about the best student loan refinance companies in 2021! Pursuing higher education can be an expensive endeavor, and student loans provide a much-needed financial aid for students. However, once you graduate, repaying student loans can be a daunting task. That’s where student loan refinancing comes in.
Student loan refinancing is a process by which you can replace your existing student loans with a new loan at a lower interest rate. This can help you save a significant amount of money in the long run, and also make it easier to manage your finances. In this article, we will explore the best student loan refinance companies in 2021, their features, benefits and drawbacks, and how to choose the best one for your needs.
1. SoFi
🚀 Overview: SoFi is a leading online personal finance company that offers a range of financial products, including student loan refinancing. SoFi stands for “Social Finance,” and it strives to help people achieve financial independence and build wealth through its products and services.
🎓 Features: SoFi offers both fixed and variable interest rates for student loan refinancing. Borrowers can refinance up to $300,000 in student loans, which is one of the highest limits in the industry. SoFi also provides a range of benefits, such as autopay discounts, unemployment protection, and career coaching.
👎 Drawbacks: SoFi requires borrowers to have a high credit score and income to qualify for refinancing. The company also does not offer co-signer release, which can be a disadvantage for some borrowers.
Company |
Fixed APR |
Variable APR |
Loan Amount |
Co-signer Release |
|---|---|---|---|---|
SoFi |
2.99% to 6.94% |
2.25% to 6.94% |
Up to $300,000 |
No |
CommonBond |
2.59% to 6.74% |
2.44% to 6.74% |
Up to $500,000 |
Yes |
Education Loan Finance |
2.39% to 6.01% |
1.81% to 5.99% |
Up to $500,000 |
Yes |
2. CommonBond
🚀 Overview: CommonBond is a student loan refinancing company that aims to make managing student loans simple and affordable for borrowers. The company takes a social mission approach to lending, and it donates a portion of its profits to education-related charities.
🎓 Features: CommonBond offers both fixed and variable interest rates for student loan refinancing. Borrowers can refinance up to $500,000 in student loans, which is one of the highest limits in the industry. CommonBond also provides a range of benefits, such as co-signer release, career counseling, and a community network.
👎 Drawbacks: CommonBond requires borrowers to have a high credit score and income to qualify for refinancing. The company also has limited availability, as it currently operates in only 49 states and Washington D.C.
3. Education Loan Finance
🚀 Overview: Education Loan Finance, also known as ELFI, is a student loan refinancing company that aims to provide personalized solutions to help borrowers save money and simplify their finances. ELFI is a division of SouthEast Bank, a community bank based in Tennessee.
🎓 Features: ELFI offers both fixed and variable interest rates for student loan refinancing. Borrowers can refinance up to $500,000 in student loans, which is one of the highest limits in the industry. ELFI also provides a range of benefits, such as co-signer release, unemployment protection, and referral bonuses.
👎 Drawbacks: ELFI requires borrowers to have a high credit score and income to qualify for refinancing. The company also has limited availability, as it currently operates in only 50 states.
FAQs
1. How do I know if I am eligible for student loan refinancing?
To be eligible for student loan refinancing, you must have a good credit score, a stable source of income, and a strong credit history. You must also have graduated from a Title IV accredited school and have at least $5,000 in student loan debt.
2. Can I refinance both federal and private student loans?
Yes, you can refinance both federal and private student loans into a new loan with a private lender or a bank.
3. Will refinancing my student loans affect my credit score?
Refinancing your student loans may temporarily lower your credit score, as the lender will perform a hard credit inquiry. However, if you make your payments on time and in full, your credit score should improve over time.
4. Can I choose between a fixed or variable interest rate?
Yes, most student loan refinancing companies offer both fixed and variable interest rates. Fixed interest rates remain the same throughout the life of the loan, while variable interest rates may fluctuate based on market conditions.
5. Are there any fees associated with student loan refinancing?
Some student loan refinancing companies charge origination fees, which can range from 0% to 5% of the loan amount. Other fees may include late payment fees, prepayment fees, or insufficient funds fees.
6. Can I refinance my student loans more than once?
Yes, you can refinance your student loans multiple times with different lenders. However, keep in mind that each time you refinance, you may incur fees and risk losing any federal loan benefits.
7. Can I release my co-signer from the loan?
Some student loan refinancing companies offer co-signer release options, which allow you to remove your co-signer from the loan after you meet certain requirements, such as making a certain number of on-time payments or meeting credit criteria.
Conclusion
Refinancing your student loans can be a smart financial move that can help you save money and simplify your finances. By choosing the best student loan refinance company that suits your needs, you can enjoy lower interest rates, flexible repayment terms, and other valuable benefits.
From SoFi to CommonBond to Education Loan Finance, the student loan refinancing market is highly competitive, and each company offers unique features and drawbacks. By comparing the different options and evaluating your individual situation, you can make an informed decision and achieve your financial goals.
If you have any questions or need further assistance, don’t hesitate to reach out to one of the companies mentioned in this article. They will be happy to assist you and guide you through the process.
Closing/Disclaimer
The information contained in this article is for general informational purposes only and should not be construed as legal, financial, or professional advice. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company or organization mentioned. Readers should always seek the advice of a licensed professional before making any financial or legal decisions.
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