Sallie Mae Student Loans Refinance

How to qualify

In order to refinance personal student loans, you have to meet several requirements. You must be enrolled at least half-time (20 credit hours) at an eligible school; attend school full-time if you’re already enrolled. In addition, you may not have had any payments on those loans for 60 days prior to applying. If you do pay off your loan before beginning your repayment plan, then you should still be able to get a lower interest rate.

What happens after I apply?

Once you’ve completed your application, Sallie Mae will review your information and decide whether to approve your request. If they accept your request, you’ll receive an email containing information about how to prepay your balance. At this point, the lender decides whether to actually reduce your monthly payment. Once the lender accepts your request, you‘ll have 30 calendar days to make the adjustment. After that time period, the lender can either continue to offer the same amount or let you pay even less.

Can my student loans benefit from refinancing?

If you have federal Stafford or Perkins loans, you can take advantage of the government’s income-based repayment options. These plans allow borrowers to cap their monthly payments based on how much discretionary income they earn each month. Borrowers who enroll in these programs tend to spend a greater percentage of their discretionary income paying down the principal on their loans than conventional borrowers. As a result, the federal government saves money while helping students avoid defaulting on their loans. However, the income-based repayment plans are only available for loans taken out under certain circumstances, including for undergraduate education, graduate school, public service or military training.

Sallie Mae Student Loans Refinance

What do I need?

You’ll need to fill out an application on SallieMae’s website along with paying a $50 fee. You’ll then need to submit proof of income (pay stubs, tax returns) and a credit report (free). Once approved, you’ll have 30 days to make payments. If you fail to pay by the due date, you’ll get hit with a late-payment fee.

How much can I save?

The average student loan borrower who refinances saves about $100 per month. But remember, this amount varies based on how long you’ve had your loans — the longer you’ve been at it, the less you’re likely to save. And don’t forget to factor in any potential fees associated with refinancing.

What if I’m already paid off?

If you’re currently debt free, you may not qualify for a refinance. And even if you do, you may still find yourself charged an origination fee. That said, some lenders won’t charge you anything upfront.

Can I refinance my graduate school loans?

Yes, you can take out a private loan to consolidate your graduate school debts. However, these types of loans aren’t generally offered by banks and therefore require you to go direct with a lender.

Can I refinance federal education loans?

Although you may not face much of a benefit to doing so, it’s still worth looking into. As long as you meet certain requirements (having fewer than 120 monthly payments left and having no outstanding collection accounts), you could potentially lower your interest rate.

Will I still owe money after the grace period?

While many lenders will let you postpone your first payment until after the grace period ends, others won’t. Make sure to check the fine print before signing a contract.

Sallie Mae Student Loans Refinance

How To Get A Loan Refinancing

If you’re struggling with high interest rates on your student loans, you may want to look into refinancing if you have some equity built up in your home. While refinancing student loan debt is not always free money — fees might apply depending on your lender — a lower payment can help ease the burden of paying off all those pesky debts. There are pros and cons to refi-ing student loans, but here are just a few things to keep in mind before making any moves.

Why Refinance Your Student Loans?

First things first, you need to decide whether to refinance your existing student loans or start over with fresh ones. If you do plan on starting over with new loans, it’s best to get preapproved for the best rate possible.

The Pros of Refinancing Student Loans

Some people choose to refinance their student loans simply because they don’t want to spend tens of thousands of dollars on credit counseling services and/or payoff letters. They feel that paying their current creditor back instead would be cheaper than going through the hassle of negotiating with a new one. Others refinance their loans for personal reasons, like wanting to stop accruing interest charges on their outstanding balance.

The Cons of Refinancing Student Loans

There are two major drawbacks to refinancing your student loans: higher interest rates and increased risk. Higher rates mean you pay more per month, and increased risk means you could lose out on your current fixed payments if your finances take a turn for the worse. You should never refinance student loans unless you know exactly how much you can afford to put towards them each month.

Can I Refinance My Student Loans?

Yes! As long as you qualify financially, you can refinance your student loans. But it’s important to remember that your previous lender will have to approve your request. That means getting a letter from your old bank or credit union stating that your credit score meets the requirements necessary to qualify to receive a new loan at a certain amount, among many other criteria.

How Much Can I Refinance?

You can refinance up to $30,000 worth of federal student loans. Your monthly payment will increase, but if your total debt tops $100,000, you can still qualify for a lower rate. Depending on your situation, this could save you hundreds — even thousands — of dollars over time.

To learn more about refinancing student loans and what lenders consider when approving requests, check out our post on how to refinance student loans.

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