Refinance Discover Student Loans

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This video shows you how to refinance student loans using Lending Club! Loan amounts vary (you pick the loan amount), but we generally try to keep things below $15k. We use Harmonic Rebalance® for our rebalancing solution and have been able to get over 30-year fixed rates around 3.2% – 3.9%.

What would happen if you could refinance student loans at 6 percent interest? Watch now to find out how much money you can save by refinancing your student loans.

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Refinance Discover Student Loans

What does refinance mean?

A refinance loan means taking out a second loan on top of your existing student loans (this is called refinancing). Refinancing your student loans saves you money at the same time! You pay off your old loan with the new loan. When you do this, your monthly payments stay about the same until you have paid off your entire loan. Your interest rates may go down, depending on how much debt you already owe. If you have federal education loans, you might get a lower rate if you apply for a private lender, not directly with the Department of Education. Private lenders offer competitive rates because they don’t need government approval to give you a loan. However if you’re looking for a cosigner, check out these tips first!

How do I know if I’m eligible for a refinance?

You’re eligible if you’ve had your account for at least 6 months and have made minimum payments each month.

Do I qualify for my own loan?

If you make less than $25,000 per year, you might be able to get your own loan. Just fill out our application! If you’re currently enrolled in school and still making payments towards your loans, we’ll show you where you stand now – just click here. We’ll compare what you owe on your current loans with what you could save by refinancing. You won’t have to borrow any extra money using a private lender.

Can I apply for my own loan?

Yes, sign up for our free service today! We’ll send you a checklist to help you decide whether you should take out a personal loan or refinance your student loans. It’s quick and painless, plus you’ll be able to save thousands of dollars over the course of your repayment term.

What options do I have for refinancing my loans?

There are lots of ways to simplify your finances and save money on your student loan payments. Here are some examples:

Consolidate your loans under one provider (for example FederalDirectLoanConsolidation).

Take advantage of income-based repayment programs (IBR) offered by private lenders.

Apply for a private loan (no credit checks), then use your savings to repay your debt faster.

Use a payment plan to spread out your payments over a longer period of time.

Refinance Discover Student Loans

How much am I paying?

The average student loan borrower carries $27,000 in debt. That’s $3,600 per month. But what if you could refinance those loans so you only paid back about half of that amount? You might find yourself with some extra money to spend now. Let’s say you’re currently paying $1,500 a month in interest. When you refinance at 4% with Lending Tree, you’ll pay back just $1,050 each month – saving you over $300 a month. Plus, you’ll have thousands less dollars in principal and interest over time.

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Does refinancing affect my credit score?

Your credit score is based off two things: payment history and how long you’ve had a balance. If you pay your bills on time, you get points for that. And if you pay early, you save on interest. So, refinancing shouldn’t affect your score, unless you missed payments due to financial hardship (a change in income, medical issue). Then, your score may go down after you miss a couple of payments. However, if you make sure not to do this and keep making timely payments, then it should improve your score.

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Can I get a lower rate than my current lender provides?

Yes! In fact, we did something similar with our own personal loans. We looked around at several different lenders and got rates significantly below where we were before. Not only does this mean you’re getting a better deal, but you can compare rates across lenders instantly. After we compared, we chose LendingTree because they offer the best rates. Not only that, but you’ll never need to worry about having any additional fees added to your bill. It’s really the perfect solution for anyone who wants to refinance their student loans without paying exorbitant fees.

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What happens if I don’t qualify for refinancing?

If you’re not eligible for refinancing, that means your monthly payment is higher than the amount you’d be paying once you refinance. In that case, you can still try to work out a repayment plan with your existing lender. Just remember, you’ll be responsible for paying all amounts past the date you refinance, including any accrued interest.

Refinance Discover Student Loans

Refinancing student loans

If you have outstanding federal student loan debt, refinancing your student loans may make sense. You may find that doing so could save you hundreds of dollars each month. To qualify, you must first be able to afford the monthly payments after paying off any existing balances. Then, you need to meet income requirements and pay down at least 10% of the principal balance per year for five years (or 15% if you’re under age 62). Find out if refinancing makes financial sense for you before you take out a new loan.

Paying back student loans early

Paying off your student loans early can help you save money and may even lower your interest rate. However, you’ll want to keep several things in mind before taking this route: First, any paid-off student loans won’t affect your credit score. Second, some borrowers who’ve taken this route have had trouble reestablishing good credit after the fact. Finally, remember that you’ll still owe taxes on any forgiven portion of your loan — whether you pay it back early or not.

Repayment options

There are three types of repayment plans for federal student loans: Income-Based Repayment, Standard Repayment, and Graduated Payment Plan. Using a combination of these options can help you reach your goals faster and avoid having leftover debt later. Plus, you may qualify for loan forgiveness programs if you work diligently toward them. Visit www.studentaid.ed.gov/repay-loans/types-of-repayments for additional details.

Consolidating loans

Consolidated federal student loans allow you to consolidate your student debt into a single payment. If you qualify, the consolidation may reduce both the loan’s interest rate and length of time you need to repay it. But consolidating doesn’t necessarily mean you’ll get a better deal; you should compare rates carefully before deciding.

Making extra payments

You don’t always have to pay the minimum amount due on your federal student loans each month. Instead, consider making larger payments towards your debts; they may end up costing less over time. And, if you apply for a private loan instead of a government-backed one, you may be eligible for even bigger breaks.

Refinance Discover Student Loans

What Is Refinancing?

You refinanced your home loan once before, right? Well, you should know that student loans are a little different from standard mortgages. When you refinance your mortgage, you’re basically taking out a new loan based on what you already owe on your house. When you refinance student loans, however, you don’t have to pay back the full amount you borrowed—you only repay what you still owe after getting rid of the old debt.

Why Should I Refinance My Student Loans?

If you’ve got student loans, you might want to consider refinancing them. A lot of people feel that paying off their student loans early helps them save money down the road. Additionally, if you’re trying to get ahead financially and need extra cash flow to do so, refinancing may be a good option.

How Can I Get Started Refinancing?

Let’s start at the beginning. You’ll need to fill out a few forms first. These forms are usually sent directly to your lender, but they’ll have information about where to send the paperwork. Once you receive these forms, you�ll need to fill them out completely and send them in along with a copy of your current student loan statements. That way, your lender can compare what you currently owe with what you would be paying under a new plan. The whole process takes time, though; so don’t expect to hear anything back immediately. However, you should have some sort of decision within 30 days. If you’d rather speak to someone over the phone, call your lender and ask how long it normally takes to make a decision.

Are There Any Downsides to Refinancing?

While there are a few things to keep in mind when refinancing student loans, there aren�t many downsides to the process. Your interest rate won’t change when refinancing, and you can always choose a lower repayment plan if you’d prefer. All of the same terms and conditions apply when you get a new loan, so you shouldn�t have any problems.

Find Out More About Refinancing Student Loans

If you�re interested in learning more about refinancing student loans, check out our blog post from earlier this year. We covered everything from the basics to refinancing options for those who have private loans. Click here to read it!

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