Refinancing Sallie Mae Student Loans

What is a Refinancing Loan?

A refinancing loan is when the current lender agrees to give you a higher rate than the original student loans that were acquired. If you refinance your student loans, you may receive a lower interest rate. Most often, refinancing your student loans involves applying online at a website called Lender Processing Services (LPS). You can find out if you qualify for a refinancing loan by contacting your existing lenders. Your current lender may have a program where they offer students a chance to refinance their loans. Even though we don’t recommend paying off your student loans early, having some extra cash might help you get approved for a lower interest rate.

Why Should I Refinance My Student Loans?

There are several reasons why refinancing your student loans could benefit you. One of them being that you would pay less interest over a longer period of time. If you have a long history of making payments on your student loans, then this could be a good option for you. Another great advantage to refinancing your student loans is that you could potentially save money. If you use the $0 down payment method, then you could save thousands of dollars. Also, if you have any private student loans, you should consider refinancing those as well. Private student loans do not accrue interest until you discharge your debt. So, if you want to avoid incurring any additional fees, refinancing your private student loans could benefit you greatly.

How Do I Get Started?

First things first, make sure that you know what kind of loans you have. Are they federal or private? If you have both types of loans, you need to decide how much you would like to borrow. The amount that you borrow will determine the length of time before you start repaying your loans. Once you have decided how much you want to borrow and for how long, contact the company who currently holds your student loans. After calling the company that holds your student loans, tell them you would like to refinance your student loans. Then, ask them if they have any programs available. Find out what the terms are and whether they require anything special from you. If you meet all the requirements, then you can go ahead and apply for your refinancing loan.

What Is Required From Me?

Before you can apply for a refinancing loan, you need to provide information about yourself. First, you need to provide proof of income. If you are still working, then send along copies of your last two pay stubs from your employer. If you no longer work, then you should show documentation that shows your monthly net income. Next, you need to prove that you have enough money to cover your bills. Send along copies of your bank statements for the past six months. Finally, you should provide documents that prove that you are able to handle the loan amount that you are requesting. Have your credit score handy as well. Your credit score will be a factor in determining your eligibility for the loan that you are requesting.

Can I Use A Credit Card To Pay Off My Student Loans Instead Of Using Cash?

If you currently have a credit card that you can use to pay off your student loans, then using that card to pay off your debts could be a smart move financially. However, if you want to use a credit card to pay off your student loan, you need to realize that you will be charged an APR. Most people don’t realize that they will be charged a fee for doing something like this. Therefore, we don’t think that going this route is a good idea.

Refinancing Sallie Mae Student Loans

You need an emergency fund!

A good rule of thumb is to have about three months’ worth of living expenses saved up in case of an unexpected expense, like a car repair bill or a medical emergency. If your monthly budget can’t cover these expenses, prioritize paying off high-interest debt first if possible. A good place to start? Refinance any of your student loans.

Check out your credit score

If you’re having trouble finding a loan that fits your financial situation, your credit score may play a role. There’s no way around this — just understand that a low credit score could make getting approved for a house or auto loan difficult. You can check your credit score for free at Credit.com once per year.

Get preapproved before shopping

Shopping around for a home or auto loan isn’t something you want to do while you’re stressed out over finances. That’s why it’s smart to get preapproved before going shopping. While mortgage rates aren’t expected to fall much further, they’ll likely remain steady until after the election, so now might be the best time to lock in a rate.

Shop carefully

When it comes to applying for a new loan, shop carefully. Choose lenders who offer competitive rates, require minimal documentation, allow for flexible repayment options, and charge reasonable fees. Also consider your lender’s customer service reputation. Lenders that treat their customers well tend to keep them coming back for future purchases.

Know what types of loan options fit your needs

Before starting the application process, ask yourself how much you would ideally like to borrow and whether you plan to live in your home long term. Then look at different types of lending products to find the ones that best suit your needs. For example, some people prefer a fixed-rate loan, some prefer a variable rate loan, and others want a combination of both.

6a. Don’t forget about tax credits

The federal government offers various tax breaks for homeownership. These include tax deductions based on interest paid and property tax exemptions. Interest deduction starts to phase out if you owe $750,000 or more on a single-family home, but there are still several ways to take advantage of this benefit. Be sure to speak to a CPA before incorporating these strategies in your own strategy.

6b. Use your equity to finance buying a home

This may not apply to everyone, depending on where you currently reside, but if you’ve got extra money lying around (or don’t mind putting it towards a down payment), using it to buy a house is a great idea. Buying a home can reduce your monthly interest payments, lower your risk of defaulting on your loan, and increase your chances of seeing higher housing prices in the future.

Refinancing Sallie Mae Student Loans

What is refinancing?

It’s when you refinance your existing loan with a different company at a lower interest rate or even eliminate your debt. You may have heard of refinancing student loans before – in fact, some students don’t realize they are actually paying higher rates than what their original lenders were charging.

Who Refinances Student Loans?

The majority of people who refinance student loans do so because they want a lower rate, or eliminate their debt altogether. In fact, many families choose to consolidate their student loans to save money on their monthly payment.

How Much Can I Save?

Many lenders offer between 5% – 30% discount off of the current interest rate. By switching to a lower rate, you could save hundreds of dollars per month!

Why Should I Refinance My Loan?

One big benefit of refinancing is that you can often get additional cash back (up to $500), depending on how much you owe on your loan. If you don’t need the extra money right away, you should consider taking out cash advances instead.

Refinancing Sallie Mae Student Loans

This video goes over how I refinanced my sallie mae student loans using just the internet and am now saving thousands of dollars on interest payments. In this video we show you how you can refinance your sallie mae loans via bank transfer on our website. In this tutorial we use Sallie Mae loans as our example.

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Refinancing Sallie Mae Student Loans

How does refinancing work?

If you have student loans, you know how expensive they can be. And if you’re like the millions of Americans who carry student loan debt, it can feel like you don’t have any choice. If you want to pay off your loans faster, refinance them. Refinancing means taking out a different type of loan, called a “refi,” that uses a lower interest rate than your current loan. You get to keep making payments on your existing loan while paying much less money each month towards your total balance.

Is refinancing a good idea?

You might hear conflicting information about whether or not refinancing a student loan is a good idea. And while some people think that refinancing doesn’t make sense, others say it is definitely worth it. Here are the pros and cons of refinancing your student loans.

Pros:

Interest rates on federal Stafford loans are still low right now. Your interest rate could potentially go down just by refinancing your loan. Many lenders offer loans at 2% or even lower interest rates. So if you’re willing to do a little homework about which lender is offering the best price on their loans, you may find yourself saving thousands of dollars over time.

Getting a lower-rate loan won’t increase the amount you owe on your loan. In fact, some students end up paying less when they refinance, because they were able to lock in a lower interest rate on their original loan. However, remember that refinancing will almost always result in higher monthly payments.

When you take out a new loan, you have to give your old lender notice before you close the deal. That means you’ll no longer be making payments toward your old loan. So, if your goal is to avoid having to start repaying your old loan, refinancing could help you achieve that goal.

Cons:

Even if you aren’t planning to use all of your newly acquired cash to repay your old loan, you will likely face a financial burden. You’ll need to pay more on top of your existing loan balance. And because you’ve taken on a new loan, you’ll be stuck with paying interest on both loans until you finally pay off the first one.

If refinancing isn’t going to provide significant savings, then is it really worth it? Remember that getting a lower interest rate is only half the battle. You also have to choose the right lender to make sure you save money on your loan. But if you’re ready to take the leap, refinance should be on the list of things you consider.

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