Almost all college graduates will agree on one thing; a college education is not cheap. By the time you graduate you often find yourself with thousands of dollars in student loan debt. Most federal loans and private lenders will allow a six-month grace period before you enter into repayment. This is to allow you enough time to obtain employment and be in a position afford monthly payments.
The majority of recent graduates do not just have one single loan, but several. Because federal loans offer lower rates than private lenders, you should always refinance them separately. Student loan refinancing lenders like Education Loan Finance can offer you a streamlined application process while providing you with a customized loan and repayment plan. But, there are a few things you should know before applying.
First thing’s first, you need to be fully aware of what your credit rating is at the time. The interest rate you will be offered with your refinancing options will be solely dependent upon how good of credit history you have established. This is why it’s always a good thing to check your credit score yourself, before applying. This gives you the chance to fix any problems you may find before you even start the application process.
Most lenders will have a minimum balance required before you are eligible for refinancing with them. Sometimes that balance may be just a few thousand dollars while other lenders may require upward of $15, 000 or more. Make sure you check about balance requirements before you start the process. This helps to avoid problems along the way.
You should also always choose a lender that specializes in student loans. Some lenders will have an entire staff dedicated to just student loans, while some other ones may not.
Those with dedicated sections often have many more options available and in general, will have better overall knowledge about student loans because they specialize in these types of loans that are very good at reviewing your specifications and providing you with effective refinancing options.
Another thing you will want to do is shop around for companies to refinance your loan through. Never make quick decisions during this process. Suggestions from people who have already refinanced student loans in the past is very helpful, but even then, you shouldn’t jump at the first opportunity you see.
ELFI is a loan debt consolidation program for students offered by the SouthEast Bank. We believe in combining state-of-the-art technology with world class service to help students consolidate education loans into one single loan that effectively lowers their costs of education and makes repayment very simple.