What excuses do people use when stuck with high interest student loans? Many times borrowers believe they aren’t eligible to refinance, or they’ve been turned down by lenders in the past. Some might think the process is too complex or time consuming. Still others aren’t fully informed.
The truth is the availability of student loan refinancing exists for millions of borrowers. And the process has never been easier.
Eight Million Missing Out
Experts estimate that approximately 8 million Americans are eligible to refinance their student loan debt. Some of these borrowers may have attempted to refinance in the past but got turned down by one or two lenders. This statistic should open their eyes: 68 percent of eligible borrowers are turned down by three or more lenders.
Not Worth The Hassle?
Some continue to balk since they know that going from door to door seeking refinancing can be a chore. Who likes rejection? Also, applying for credit inquiries from individual lenders may negatively affect your credit score. For a long time, these concerns were legitimate. The refinancing process was arduous due to the distance between borrowers and lenders. Also, there was no easy way to instantly compare real interest rates from multiple lenders.
The good news is that there is a way around all this. Even more, the solution goes far beyond just convenience. It’s a method that can help you get the best interest rate out there.
Lender Marketplace Solution
Just as the travel industry has been revolutionized by sites that let you see actual prices for air fares and hotel rooms, a lender marketplace can show you rates you’re prequalified for with multiple lenders. Many have already taken advantage of a lender marketplace to lower their student loan payments. In a nutshell, the marketplace lets you answer a few questions about yourself, and see personalized rates from lenders who are competing for your business..
The results are incredibly advantageous. For example:
- See real rates from multiple lenders in minutes.
- Many lenders will compete for most eligible borrowers. No more door-to-door shopping.
- Competition between lenders drives interest rates down.
- Your credit score is not affected when you request personalized rates.
- The options are presented in a simple, easy to understand manner.
- The marketplace puts you in contact with the lender of your choice — you’re not steered to any company.
- The interest rates presented to you are real and customized to your situation.
What Refinancing Does For You
When you refinance your student loan, you exchange your old loan for a new one, typically with a lower interest rate. This can allow you to lower your monthly payment yet still keep the total number of payments the same. If you want to reduce your monthly payment by a lot, you can refinance into a loan with a longer repayment term, but you may pay more over the life of your loan. If you would rather maximize your savings over the life of the loan, you could increase your monthly payment and reduce the loan term. What you decide depends on your current financial situation and personal preferences.
In the end, student loan refinancing gives you something everyone wants: options to restructure your loan to save money and personalize it to your needs. So even if you tried to refinance in the past and were turned down, try again. Leverage the lender marketplace and get a better deal.