It’s a great time to be a student loan borrower. The interest rates on federal loans have been low for some time, and now private lenders are following suit. But even though getting out of debt is easier than ever, there are still plenty of things you need to look at before opting for the best student loan refinance companies. Here are the top five things to consider when deciding whether or not it makes sense for you:
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Choose the term length that works for you
When deciding on the term length of your student loan refinance, you should keep in mind that every choice has pros and cons. A shorter term length will result in lower monthly payments, but it also means paying more interest over time. On the other hand, a longer-term allows you to escape the burden of high monthly payments but also increases the amount of money you’ll pay overall.
Check out the company website
A student loan refinance company’s website is a great place to start when looking for one. After all, you’re going to be spending a lot of time on their site. The best way to check out a website is by using it yourself; you can learn a lot about how easy or difficult the website will be for you personally by actually trying it out.
Dig into customer reviews
You can find out a lot about a company by looking at reviews on its own website. If you have the time, dig into the comments and see what customers say. Sometimes what’s written is surprising and illuminating.
Find out about their interest rates
You’ll want to look at the interest rates because they can significantly affect your repayment over time. A high-interest student loan could cost you thousands of dollars more than if you had chosen a lower-interest student loan. Experts like Lantern by SoFi say, “Many factors influence your interest rates.”
You should also compare the range of rates offered by different companies — some will offer better rates than others on all their loans, while some might have higher or lower rates depending on specific factors like school and major (for example, medical school loans have much higher interest rates than most other types of student loans).
See what other benefits they offer
- You also have to ensure that the company offers student loan consolidation, refinance and forgiveness programs. These are all great benefits that you should look for in a lender.
- Student loan forbearance is another thing to keep an eye for when researching a potential lender because it will help you reduce your payments if you need it due to some sort of financial emergency or hardship that has come up while paying back your student loans.
With so many student loan refinancing companies, choosing one carefully is important. Make sure that the company you choose is reputable and has been in business for a while so they can provide you with the best service possible. Also, look at their customer reviews before deciding who will handle your debt consolidation needs.
