Student Loan Refinance Reviews (part 8 Of Series)

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Student Loan Refinance Reviews (Part 8 of Series)

This is our eighth article in a series covering student loans. Our goal in this series is to equip you with the knowledge necessary to make efficient and informed decisions regarding your student loans. This post will go through our student loan refinance reviews.

The student loan refinance market is heating up. New lenders seem to pop up every couple months – many with competitive products to consider. This is great for you, the consumer, however, it also requires that you be on your game and understand how lenders compare.

This list should get you started.

Darien Rowayton Bank “DRB”

  • Refinance available to working professionals with bachelor’s or graduate degrees (U.S. citizens and permanent residents)
  • Refinance available for federal and private student loans
  • Application process done online
  • No maximums for student loan refinance
  • Offers 5, 7, 10, 15, or 20 year fixed and variable interest rate loan terms (other terms available upon request)
  • No prepayment penalties or origination fees
  • Spouses can combine all student loans together into one loan as long as both of them apply together as co-signers
  • Offers limited forbearance options
  • In the event of death, DRB will forgive all amounts owed under the loan
  • In the event of permanent disability, DRB may forgive some or all amounts owed under the loan (see promissory note for specific definition of disability and terms)
  • Special program available for medical residents and fellows.
    • Payments of $100/mo during residency, fellowship and your first six months in practice
    • Interest does not capitalize until you begin making normal payments (6 months into practice)
  • Rates as of 11/9/2015 (does not include .25% rate reduction with auto-pay):
    • Fixed APR: 3.75% – 6.50%
    • Variable APR: 2.15% – 4.78% (variable rate cap 9% on 5,7 & 10 year terms and 10% on 15 or 20 year terms)
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.
  • Special deal now being offered for ADA members that allows for additional 0.25% rate reduction
  • DRB has a B- rating with BBB and 3 closed complaints

CommonBond

  • Refinance available to U.S. citizens and permanent residents who graduated from specific schools in the CB network (2,000+ schools)
  • Refinance available for federal, private, corporate-sponsored, and international student loans
  • Application process online
  • $500,000 maximum refinance
  • Offers 5, 10, 15, 20 year fixed and variable interest rate loan terms
  • Offers a hybrid loan (10 year term with 5 yrs fixed then 5 yrs variable).
    • This could be good for someone that will pay of the loan in 5 years but cannot commit to the 5 year fixed payments today (maybe your pay is going to increase considerably next year).
    • When you apply for this loan, the interest rate offer on the fixed rate period should be lower than the 10 year fixed rate offers but higher than the 5 year fixed rate offers.
    • The variable rate period will be based on future rates at that time. The variable rate cap under the hybrid loan is 10.99%
  • No prepayment penalties or origination fees
  • Able to use a co-signer if you do not qualify on your own
  • Offers limited forbearance options
  • Rates as of 11/9/2015 (does not include .25% rate reduction with auto-pay):
    • Fixed APR – 3.99% – 6.74%
    • Variable APR – 2.20% – 5.19% (Variable rate cap 12.99%)
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.
  • CommonBond has a B+ rating with BBB and 1 closed complaint

LinkCapital

  • Refinance available to U.S. citizens that have graduated both from college and medical school
  • You must be a medical resident, in a fellowship program, or be employed by a health system, hospital, or medical practice to be eligible for refinance with LinkCapital
  • Refinance available for federal and private student loans in all 50 states
  • Application process online
  • $450,000 maximum refinance
  • Offers 7, 10, 15 & 20 year fixed interest rate loan terms to residents and fellows
  • Offers 3, 4, 5, 7, 10, 15, & 20 year fixed and variable interest rate loan terms to practicing medical professionals
  • Co-signers accepted if applicant does not meet criteria
  • Spouses cannot combine loans all into one loan
  • No prepayment penalty or origination fee
  • Late fee 5% of the unpaid balance or $10 (whichever is less)
  • In the event of death or total and permanent disability, the terms of your credit agreement will be nullified (see promissory note for specific definition of disability and terms)
  • Special program available during residency and fellowship (up to 7 years)
    • Payments $0/mo and interest accrued during the deferral period capitalized at the end of the deferral period
    • This allows you to avoid paying interest on your interest during residency/fellowship similarly to how income-driven repayment works with federal student loans
    • Structured like federal loan forbearance without the annual interest capitalization
    • 3-month grace period offered at completion of residency or fellowship
  • Rates as of 9/3/2015 (does not include .25% rate reduction with auto-pay):
    • Resident/Fellow
      • Fixed APR: 4.42% – 7.30%
    • Practicing Medical Professional
      • Fixed APR: 3.49% – 7.10%
      • Variable APR: 2.08% – 5.12% (Variable rate cap 18%)
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.
  • Loans serviced through Aspire Resources which has an A+ rating with BBB and 39 closed complaints

Social Finance “SoFi”

  • Refinance available to U.S. citizens or permanent residents
  • Eligibility requirements:
    • U.S. citizen or resident of 18 years or older
    • Hold a 4 year undergrad or graduate degree from a Title IV accredited institution
    • Must be employed or have offer of employment within 90 days from the time that you apply
    • Must be in good standing with current student loans
    • Steady employment history
    • Convincing monthly cash flow
    • Credit score of 700+
    • Refinance not offered to residents of Nevada
    • Variable rate loans not offered in Ohio and Tennessee
  • SoFi will refinance both private and federal student loans
  • Application process online
  • No max for student loan refinance
  • Offers refinancing terms of 5, 10, 15, and 20 yr
  • No origination fees or prepayment penalties
  • Spouses cannot combine loans all into one loan
  • Adding a co-signer is optional and occasionally accepted
  • Parents able to refinance parent PLUS loans
  • Rates as of 9/10/2015 (does not include .25% rate reduction with auto-pay):
    • Fixed APR: 3.75% – 7.49%
    • Variable APR: 2.15% – 5.45% (5/10 yr variable loans capped at 8.95% APR, 15/20 yr capped at 9.95% APR)
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.
  • SoFi BBB A+ with 22 closed complaints
  • Loans serviced through MOHELA which has an A+ rating with BBB and 185 closed complaints

Citizens Bank

  • Available for students with undergraduate and graduate degrees
  • Student loan refinancing available for federal and private loans
  • Loans available in all 50 states
  • Maximum Refinance: $90k undergrad, $130k grad, $170k professional
  • 5, 10, 15, and 20 year terms available
  • Must currently be in repayment and have 3 payments on time and paid in full
  • Minimum household income $24k
  • Strong credit score required
  • Can receive up to 0.50% rate reduction through signing up for automatic payments and having an account with their bank
  • No prepayment penalty, origination fee or application fee
  • Limited forbearance options for those with financial hardships
  • Rates as of 9/10/15 (these are much higher than others available):
    • Fixed APR: 7.24% – 11.75%
    • Variable APR: 5.45% – 9.45%
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.

CordiaGrad

  • Available for working professionals with bachelor’s or graduate degrees
  • Student loan refinancing for federal, private, undergraduate, and graduate loans
  • Application requirements:
    • Must be 23 years old and employed 2 years before applying for loan
    • Minimum income of $42k per year ($25k with co-signer)
    • Strong credit history
  • $350,000 maximum refinance
  • No prepayment penalties or origination fees
  • Limited forbearance options available
  • 5, 8, and 12 year terms available
  • Fixed/variable rates vary depending on degree and credit score

Earnest

  • Available for students who have graduated or will graduate in 6 months
  • Offers federal and private student loan refinancing
  • No maximum – 100% of outstanding loans can be refinanced
  • Personalized terms and interest rates available
  • No prepayment penalty, origination fee, application fee, or late fees
  • Eligibility requirements:
    • 18 years or older
    • Must be employed or have offer of employment
    • Already graduated or will graduate within 6 months
    • Live in eligible states
    • Loans must be from an accredited university
  • Available in 36 states across the country
  • Online application with additional information required (Education history, personal info, employment history, and financial history)
  • Hyper-personal underwriting
    • Application process is very detailed and will consider your full financial picture allowing you to receive a more personalized offer.
    • Earnest looks to lend money to borrowers who are in control of their finances and know how to manage them
  • Flexibility offered by allowing the following:
    • Borrower can switch between fixed and variable rates for no additional charge
    • Structure loan terms based on available budget
    • Allows for considerable payment flexibility without penalty
  • Forbearance is offered for protection of employment
    • Allowed to defer payments for three months at a time, up to 12 months of the life period of the loan
  • Offers a deferral of up to 3 years if the borrower goes back to school
  • Rates as of 9/10/15: (does not include .25% rate reduction with auto-pay):
    • Fixed APR: 3.75% – 7.50%
    • Variable APR: 2.15% – 6.00% (Caps on variable loans are 8.95%, 9.95%, and 11.95% depending on the loan term)
  • Your specific offer (rate and terms) can vary within a specific loan type. If you fall outside their approval range, you will be declined. Your final offer will ultimately depend on your specific financial circumstances.
  • Promises to never pass you off to a third-party servicer
  • Rated A by the BBB with 0 closed complaints

Education Success Loans

  • Available for working professionals with a bachelor’s degree or higher level of education after 30 months of being out of school
  • Loans not offered to people living in AZ, IA, IL, or WI
  • Refinance available for both private and federal student loans
  • $100,000 maximum refinance
  • Online application with additional documentation (pay stub, tax return, etc.)
  • Co-signer is accepted
  • Offer several different types of forbearance (military, economic hardship, in school, etc.)
  • Rates as of 9/11/15 (does not include .25% rate reduction with auto-pay):
    • All loans are a hybrid loan option (initial fixed rate that changes to variable after certain amount of time)
    • Initial period fixed APR (not for full loan term): 5.24% – 8.24%
    • Variable rate cap: 15.00%

EdvestinU

  • Student loan refinancing available for private loans only
  • Online application process
  • $125,000 maximum refinance – unless loan was funded by New Hampshire Higher Education Loan Corps
  • No prepayment penalty or origination fee
  • Co-signed loans available with co-signer release option after 24 months of consecutive, on-time payments
  • Specific rate ranges unknown

First Republic

  • Available for undergraduate and graduate students
  • Must apply at a First Republic office location (California, Oregon, Florida, New York, Connecticut, and Massachusetts)
  • Refinance both federal and private loans
  • No forbearance offered
  • Only offer fixed rates
  • Offers refinancing terms of 5, 7, 10 and 15 years
  • $60k minimum and $300k maximum refinance
  • No origination fee, prepayment penalty or annual fees
  • Eligibility requirements:
    • Must have FR Checking account with auto-pay
    • Working professional for at least 24 months
  • Rates as of 9/28/15 (includes auto-pay rate reduction):
    • Fixed APR: 1.90% – 3.50%
  • Interest prepayment rebate program – First Republic will rebate interest paid on the loan, up to 2% of the original balance, if the loan is paid in full within 48 months

U-fi (Nel Net)

  • Refinance available to U.S. citizens or permanent residents
  • Will refinance federal and private student loans
  • Apply online with additional documentation (Social security #, income amount, etc.)
  • Maximum refinance amounts:
    • $125,000 undergraduate degree
    • $150,000 graduate degree
    • $175,000 MBA or Law degree
    • $225,000 Graduate health professions degree
  • Terms of 5, 10, 15, 20, and 25 years
  • Rates as of 11/9/15 (does not include .25% rate reduction with auto-pay):
    • Fixed APR: 4.46% – 8.91%
    • Variable APR: 3.55% – 7.44%
  • No origination or prepayment fee
  • Offers a co-signer option
  • Forbearance: 2 years max, 3 year deferment if currently in school, 4 year military deferment
  • Qualification requirements:
    • US citizen/permanent resident
    • 18+ years of age
    • Attend one of the eligible schools on list
    • Borrow minimum of $1,000
    • Not exceed max student debt limit
    • Annual income of $12,000+
  • Offer discount – 1.5% cash back rewards after 12 months of consecutive, on time payments (capped at $500 per borrower)

RISLA

  • Available for undergraduate and graduate loan refinance
  • Online application process
  • Student loan refinancing and consolidation for private loans only
  • Terms of 5, 10 or 15 years
  • Currently refinancing available for any state
  • No prepayment penalty
  • There is origination fee on student loan refinances
  • Rates as of 11/9/15 (does not include .25% rate reduction with auto-pay):
    • Fixed APR (with co-signer): 4.49% – 5.99%
    • Fixed APR (no co-signer): 5.74% – 7.24%

Our Picks:

  • Best fixed rate options – First Republic
  • Best lenders for medical residents – LinkCapital & DRB
  • Best lenders for practicing dentists – DRB
  • Most flexible terms & underwriting – Earnest
  • Fastest application process – SoFi

Have you had any experiences refinancing your student loans with any of these or other lenders? How did it go?

Keep in mind, with any refinance of federal loans into private loans, you will be giving up federal loan benefits such as Public Service Loan Forgiveness, income-driven repayment, disability discharge and forbearance options. You should fully understand exactly what you are giving up with your federal student loans before moving forward with this process. You should also consult with your tax advisor to understand the tax implications of this type of transaction.

We do not accept any compensation of any type from any of the lenders mentioned on this list. We have established welcome bonus programs with several of the lenders which can provide a financial benefit for the people we refer. However, we do not receive any financial benefit from the welcome bonus programs.

Our intent in sharing this information is to help you generally understand the current landscape of your student loan refinance lending options. This list does not include all student loan refinance lenders. This information will quickly become outdated and errors will exist from time to time. Also, specific refinance offers will be based on your specific circumstances and will not always fall in line with the general guidelines. In all cases, you must consult with each respective lender to obtain the most accurate and up to date information.