5 Benefits of Refinancing Your International Student Loans
June 20th, 2022 by Al C

refinancing international student loans

It’s tough to pay back student loans if you’re living in the United States and paying them to a bank in another country. You could make payments easier by refinancing your international student loans through a US-based lender.

In truth, there are a number of reasons why the response to “Should I refinance my private student loans?” might be yes.

5 Reasons to Refinance Private Student Loans in the U.S.

Here are five of the most significant benefits of refinancing your student debt in the United States:

  1. Qualify for student loan repayment assistance.
  2. Switch to a lower interest rate.
  3. Release your cosigner or collateral from your loan.
  4. Build your credit history in the U.S.
  5. Switch to a lender that is easier to deal with.

1. Qualify for student loan repayment assistance.

student loan refinancing

Student loan perks are available from more businesses than ever before. These companies will match a portion of your student loan payments — up to $5,250 per year tax-free — to assist you in repaying your student loans.

Even if you work for one of these businesses, your international student loan may not qualify for this aid. Fortunately, there is a solution: You can apply to refinance your loan with a lender in the United States to make it eligible.

By refinancing, you’ll replace your international student loans with a U.S.-based loan, which may be eligible for employer-sponsored student loan assistance.

2. Switch to a lower interest rate.

A lower interest rate is one of the most significant advantages of refinancing private student loans. If you can get a rate that is lower than the one you are paying now, you may save hundreds or even thousands of dollars over the life of your loan.

Let’s assume that you have $35,000 in student loans with an interest rate of 11%. If you can reduce the rate to 7.99%, you could save almost $7,000 in interest during ten years. Your monthly payment will also go down by $58.

You could save money on your student loans and make things easier by refinancing.

3. Release your cosigner or collateral from your loan.

You may be able to remove a cosigner or collateral from your international student debt if you decide to refinance it.

If you obtained the loan with a cosigner, he or she is responsible for the loan if you cannot make the payments. If you do not make your payments, the lender can ask your cosigner to repay the loan. If you have collateral attached to your international student loan, a lender could consider your loan in default and take legal action to seize these assets if you don’t pay.

However, by refinancing, you may be able to obtain a new student loan on your own, thus eliminating the risk for your cosigner or collateral. While some refinancing lenders demand that international graduates use a U.S.-based cosigner, MPOWER Financing allows borrowers to apply on their own.

4. Build your credit history in the U.S.

build credit history by refinancing international student loan

In the United States, a good credit score is required to obtain a loan, open a credit card, or rent an apartment in certain situations. Credit scores are based on your track record of debt management, among other things. Paying your bills on time will raise your score while failing to pay them or maxing out your cards will lower it.

Your credit score is calculated using only activity from the United States, so it doesn’t account for international borrowing. If you moved to the United States from another country, your credit score may need to be rebuilt from the ground up.

You can start to build your credit history and improve your credit score by refinancing your international student loans in the United States. If you make timely payments, you will see your credit score rise.

As your credit score improves, you’ll be able to get loans, credit cards, and other financial services easier.

5. Switch to a lender that is easier to deal with.

If you are living in the United States, refinancing your student loans with a U.S.-based lender could make your repayments easier. This is because you will not have to worry about currency exchange rates, international transfers, or international banking fees.

Furthermore, you may be eligible for new perks. Some lenders provide borrower protections such as the ability to defer or pause payments in case of financial difficulty.

Other lenders allow you to prepay your student loans without penalty, allowing you to make more payments to get rid of your debt faster with no penalties. If you’ve had a negative experience with your lender thus far, switching to a new one through refinancing might provide for a better experience.

In conclusion

Refinancing your international student loans with a lender in the United States may provide you several advantages, such as lowering your costs of interest or assisting you establish your credit history in the United States. If you want to be financially self-sufficient, refinancing your student loans with a lender like MPOWER Financing might help you do so because it doesn’t require a cosigner or collateral.

If you get hired by a company that offers to help its employees with their student loans, refinancing your loan could make you eligible for this benefit. For example, you could receive up to $437 per month (or $5,250 annually) tax-free to put towards your student loans. This would help you pay off your student debt faster.

Remember, if you refinance your international student loan in the U.S., you will no longer have that student loan in your home country. If your current lender offers any benefits that you don’t want to lose, it might be better to leave your student loans as they are.

If you think the advantages outweigh the disadvantages, refinancing private student loans in the United States may be a smart option.


How to Pay Back Your Student Loans Faster as an International Student
May 12th, 2022 by Al C

international students in black academic dress standing

Student loans can be a helpful way to pay for college in the United States. However, they can become a big financial problem after you graduate. If you want to get rid of your monthly student loan payment, there are ways to pay off your student loans more quickly. 

Although it might not be easy, accelerating your debt repayment could be worth the sacrifices in the end if you’re able to pay off your student loans ahead of schedule.

How to pay off your student loans faster

If you want to pay off your student loans quickly, here are some strategies that could help:

1. Refinance for a lower interest rate 

repay international student loans faster

If you want to pay off your student loans faster, you might want to refinance your international student loan with a lender in the United States.

If you refinance your loan, you might be able to get a lower interest rate. This means that less of your money will go towards the interest, so you might be able to afford extra payments on your refinanced loan.

Keep in mind that many lenders in the U.S. don’t have a prepayment penalty, so you won’t have to worry about any fees if you decide to make extra payments. 

Some lenders offer discounts if you make your payments on time or if you sign up for automatic payments. For example, MPOWER Financing offers a 0.50% rate cut if you put your refinanced student loan on autopay and an additional 0.50% rate discount after you’ve made six consecutive payments using autopay.

Reducing your interest rate as much as possible can help make your loan more affordable as you work to pay it off faster.

2. Pay more than the minimum payment 

When you borrow a student loan, you usually agree to pay it back with fixed monthly payments over a certain number of years. But if you pay more than the minimum amount due each month, you can reduce the number of years it will take for you to repay your loan. 

For example, let’s say you took out a $35,000 loan at a 10.00% rate. If you paid $463 per month, it would take you 10 years to pay it off. But if you could increase your monthly payment to $513 ($50 more per month), you would get rid of the debt 1 year and 6 months faster and save nearly $3,500 in interest. If you could pay $563 per month, it would take 2 years and 8 months less to pay off the debt and save nearly $6,000 in interest charges. 

You may want to increase your payments on your loan. But before doing that, make sure that the loan servicer is applying the payments correctly. The servicer should be putting your extra payments toward your principal balance instead of saving them for future bills. 

3. Find a job with student loan assistance 

getting a job that offers student loan repayment assistance

Some companies offer student loan assistance benefits to their employees. If you are looking for a new job, it might be worth looking for a company that will help you pay back your student loans. Note that not all student loans are eligible for this benefit – you might need to refinance your student loans with a U.S.-based lender to qualify for employer-sponsored student loan assistance. 

4. Make biweekly payments 

If you are making monthly student loan payments, consider switching to biweekly payments. This means splitting your monthly payment in half and paying that amount every two weeks. Instead of paying $200 once per month, for example, you would pay $100 every two weeks. 

It will feel like you are still paying the same amount each month, but you will actually make the equivalent of 13 monthly payments in the year instead of 12.

Making biweekly payments on your student loans is an easy way to pay off your debt faster without much extra effort on your part. 

5. Ask for a raise or work a side hustle 

coworkers

Making extra payments on your student loans can be difficult if you don’t have any money left over in your budget. If you want to get rid of your debt quickly, you’ll need to find ways to make more money. 

You could ask for a raise from your employer or start working a side hustle, like driving for a ride-sharing service or doing freelance work online. If you can make more money, you can use that extra cash to pay down your student loan debt faster. 

6. Reduce your living expenses 

Besides making more money, think about ways to spend less money. This will free up more of your budget to put towards your student loans. 

One way to do this is by downsizing to a cheaper apartment or moving in with a roommate or two. If you eat out at restaurants often, try cooking at home instead. And if your car payment is tough to afford, consider trading in your car for a less expensive one. 

Look over your monthly expenses and identify areas where you can cut back. For example, if you can save $50 or $100 per month, that will help you pay off your student loans sooner.

7. Put a cash windfall toward your loans 

If you receive some extra money, like a bonus at work or a gift, it might be tempting to spend it on something fun. But if you want to get rid of your student debt quickly, you should think about using that money to pay off your student loans. 

If you need some extra motivation, use a calculator to see how much extra payments would save you in interest. Seeing how much time and money you could save might give you the push you need to stay on track with your debt repayment goals.


Reputable student loan consolidation companies
March 29th, 2022 by Sagnik Santra

reputable student loan consolidation

Student loan debt is one of the biggest burdens for students as well as parents. It is not always to make the ends meet and monthly installments on the loans can be quite a task. Many students spend almost one-third of their lives on the repayment of these debts. If not managed correctly, it can take a huge toll on the financial well-being of the person.

To ease this burden, many people look for student loan consolidation companies that can help in lowering the monthly payments or even get rid of the debt completely. But, with so many options available in the market, it can be difficult to decide which company is reputable and can be trusted.

In this article, we will be talking about what student loan consolidation is, how does it work, and some of the best and most reputable companies in the market. So if you are a student or parent looking for a student loan consolidation company, this article is definitely for you.

What is student loan consolidation?

First thing first, let’s take a look at what student loan consolidation is. In simple terms, student loan consolidation is the process of taking multiple student loans and combining them into a single loan with a lower interest rate. This way, you will only have to make one monthly payment instead of multiple payments. In simple words, student loan consolidation is a type of student loan refinancing.

It will be a lot easier for parents and students to keep track of the payments as they don’t have to manage multiple loans at once. In addition to interest rates, you might also get more suitable repayment terms and lower monthly payments.

How do student loan consolidation and student loan refinance work?

reputable student loan consolidation

So now that we know what student loan consolidation is, let’s take a look at how it works. As we mentioned earlier, student loan consolidation is the process of taking multiple student loans and combining them into one. But, the term ‘consolidation’ can be a bit misleading as you are not consolidating or merging your loans, you just refinance student loans.

What happens is that you will take out a new loan to pay off your old student loans. This new loan will have a lower interest rate and more favorable terms than your original loans. In addition, the consolidation company might be able to get you a lower monthly payment than you are currently paying.

Student loan consolidation: Federal student loans vs Private student loans

When it comes to student loan consolidation you can either consolidate your federal student loans or your private student loans. Let’s take a look at the difference between the two:

Federal loans

If you want to consolidate or refinance federal loans, you will have to do it through the Department of Education’s Direct Loan Consolidation program. This program is only for federal student loans such as Stafford Loans, PLUS Loans, and Direct Loans.

The biggest benefit of consolidating your federal student loans through this program is that you will be eligible for certain repayment plans that are not available for private loans. In addition, you might also be able to get a lower interest rate on your consolidated loan.

Private student loans

reputable student loan consolidation

If you want to consolidate your private student loans, you will have to do it through a private lender or a loan servicer. Many private lenders offer student loan consolidation services and you can shop around to find the best rates and terms.

The biggest benefit of consolidating your private student loans is that you might be able to get a lower interest rate than your current rate. In addition, you will also have the flexibility to choose your repayment terms.

Note: You can combine your federal loans and private student loans for consolidation. This means if you have both federal and private loans, you have to make two separate consolidation applications, one for your federal loans and one for your private loans.

What is a direct consolidation loan?

The direct consolidation loan is a federal student loan that combines two or more federal loans into one. Similar to other types of consolidation loans, a direct consolidation loan will have a low fixed interest rate and more flexible repayment terms.

When it comes to direct consolidation loans, only students with federal loans can apply. Students who have private loans are not eligible. They have to find a private lender to consolidate their loans.

What are the benefits of student loan consolidation?

There are many benefits of student loan consolidation. Let’s take a look at some of the most important ones:

reputable student loan consolidation

1. Lower interest rates: The best part about consolidating your student loans is that you can get a lower interest rate, which means fewer loan payments. This will save you money in the long run and help you pay off your loan faster.

2. More flexible repayment terms: Consolidating your loans will give you more flexible repayment terms. This means that you can choose a repayment plan that fits your budget. But first, you have to qualify for a repayment plan.

3. You can focus on a single loan: When you have multiple student loans, it can be difficult to keep track of all of them. But when you consolidate your loans, you will only have one loan to focus on. This will make it easier for you to stay on top of your payments and avoid defaulting on your loan.

4. Peace of mind: Consolidating your loans can give you peace of mind. This is because you will know that all of your loans are in one place and you are only making one payment each month.

Disadvantages of student loan consolidation

While there are many benefits to student loan consolidation, there are also some disadvantages that you should be aware of:

1. You might lose your grace period: When you consolidate your loans, you might lose your grace period. This means that you will have to start making payments on your loan right away instead of after the grace period.

2. You might have to pay more in interest: If you consolidate your loans, you might have to pay more in interest over the life of the loan. This is because your grace period will be reset and you will have to start paying interest right away.

reputable student loan consolidation

3. You might have to pay an upfront fee: Some lenders might charge an upfront fee for consolidation. This fee can be anywhere from 1% to 5% of the total loan amount. So make sure to shop around a find a suitable lender.

4. You might not qualify: Not everyone will qualify for a consolidation loan. This is because you have to meet certain eligibility requirements, such as having a good credit score. So check the eligibility criteria before applying.

How to find a suitable student loan consolidation company?

To get the best deals, it is very important to find a reputable and reliable student loan consolidation company. Here are some tips that can help you:

1. Shop around: The best way to find a good consolidation company is to shop around. There are many companies out there and each one has different terms and conditions. So it is important to compare the offers before you choose a company.

2. Read reviews: Another great way to find a good consolidation company is to read reviews. Many websites offer reviews of different lenders. So make sure to read the reviews before you make a decision.

3. Look for an upfront fee: As we mentioned earlier, some lenders might charge an upfront fee for consolidation. This fee can be anywhere from 1% to 5% of the loan amount. So it is important to find a company that doesn’t charge this fee or at least charges a lower fee.

4. Check the eligibility criteria: Make sure to check the eligibility criteria before applying for a consolidation loan. This will help you determine if you are eligible for the loan or not.

5. Check the interest rate: The most important thing to consider when consolidating your loans is the interest rate. Make sure to find a company that offers a lower interest rate. Lower interest means lower monthly payments and less money paid in the long run.

These are just some of the things to consider when consolidating your student loans. If you take the time to shop around and compare the offers, you will be able to find a good consolidation company that meets your needs. So make sure to do your research before making a decision.

Top student loan consolidation companies

Here are some of the top student loan refinancing lenders:

reputable student loan consolidation

1. MPOWER: Refinance your U.S. or foreign student loan with MPOWER. Release your cosigner and collateral. Benefit from lower, more convenient payments, and build your U.S. credit history.

2. SoFi: SoFi is one of the most popular student loan refinance companies that offer low and fixed interest rates and a range of other benefits. They have a good reputation and are known for providing excellent customer service.

3. Credible: Credible is another popular student loan consolidation company. They offer a wide range of services and have a good reputation. For an overall good experience, Credible is a good choice.

4. LendKey: LendKey is a company that specializes in student loan consolidation. They offer low-interest rates and a wide variety of lenders to choose from. If you are looking for a specific lender, LendKey might be the best choice.

5. RISLA: RISLA is a student loan consolidation company that offers low-interest rates and flexible repayment options. You can have options like income-based repayment options and deferment options.

6. Discover: Discover is a well-known financial institution that offers student loan consolidation services. They offer low-interest rates and a wide variety of repayment options. Discover is a good choice for those who want flexibility in their repayment options.

These are just some of the top student loan consolidation companies. If you are looking for a consolidation company, these are some good choices. Each one has its own set of benefits and features. So make sure to compare the offers before you make a decision.

The bottom line

There are many student loan consolidation companies out there that can help you refinance your student loans. It is important to find a reputable and reliable company that offers low-interest rates and flexible repayment options. You can use the tips above to find a good consolidation company. So make sure to do your research before making a decision.


How to refinance student loans?
January 17th, 2022 by Sagnik Santra

how to refinance student loans

Student loans are some of the best financial tools for students to fund their education. They are great if you don’t have the money to pay for college but still want to earn a degree. Student loans are usually less expensive than other forms of loans.

However, life is not always that smooth, and some people find themselves with too much debt. They owe too much money on student loans, and they do not know what to do. The longer you will take to pay for this debt, the more money you will spend on interest.

This is where student loan refinancing comes into play. It helps you lower your interest rates and pay off student loans faster. This article will explain how this tool works, the pros and cons of refinancing, why it may be a good solution for you, and where to find companies offering this service.

What are student loans?

how to refinance student loans

Before getting into the student loan refinance details, you should know these financial tools. Student loans are a form of borrowing money to cover the expenses related to studying. They are usually offered through banks, private lenders, or the government to help students with their bills.

Student loans are helpful in many cases, but they may also become a problem if you do not know how to handle them. If you borrow a lot of money for college and fail to find a job after this, this can be a significant financial problem. That is why some people decide on student loan refinancing.

There are basically two types of student loans

1. Federal student loans:

The government offers federal student loans. So you can expect to find the lowest interest rates for this type of loan. There are fewer requirements for federal loans, and the borrowers don’t need to prove their creditworthiness. Students must meet certain academic points to meet the requirements.

2. Private student loans:

As their name suggests, private loans are offered by private lenders. These loans usually have higher interest rates, and you must prove your creditworthiness to get approved. The repayment terms are more strict with private loans.

What is student loan refinancing?

Now that we have a clear idea of what student loans are, it’s time to talk about refinancing. By refinancing, you basically change the terms of your current student loan. You apply for a better interest rate, and the company you borrowed money from agrees on this new deal. The companies offering a student loan refinance deal usually have lower rates than those keeping your previous loan.

Why should you consider refinancing student loans?

how to refinance student loans

Here are some of the main reasons why should you refinance your student loans:

1. Lower interest rates:

The main advantage of refinancing is getting a lower rate than your previous one. Usually, once the loan is refinanced, it will be offered at a lower interest rate, and you can save thousands of dollars. You will start saving money when the new contract is signed, and the new interest rate kicks in.

2. Lower monthly payments:

Of course, lower interest rates mean that your monthly payment will be smaller as well. You may even get a different type of loan, which provides lower monthly repayments than what you currently have. This is why it’s essential to read all the offers thoroughly before choosing one.

3. You don’t have to pay for multiple loans:

Yes, student loan refinancing can help you get rid of multiple loans and consolidate them into a new one. This means that your accounts can be closed, and you won’t have to worry about paying for multiple debts at a time.

4. You can pay off your student loan faster:

Another benefit of refinancing is that the repayment terms may change in a way that will allow you to pay back your loan faster. This can be extremely helpful if you know that you will only need the loan for a short period and then manage to pay it back.

5. You can re-arrange your repayment term:

This is one of the main advantages because it allows you to change the loan terms. You can do everything from lengthening or shortening them, changing your monthly payment amount, adding another loan to it, etc. This will depend on your particular situation and your needs.

What are the disadvantages of refinancing student loans?

how to refinance student loans

Even though there are many benefits to refinancing your student loan, you should consider that this may not be the best solution for everyone. There are certain disadvantages which you should know about before making any decisions:

1. Not everyone can qualify:

Not everyone can qualify for student loan refinancing. Before applying, you should read carefully about the requirements, and if you have a poor credit score or a low income, this option may not be available.

2. You lose federal repayment plans:

When you refinance a federal student loan, it means that all of your rights as a borrower are done for good. This means that you won’t benefit from federal repayment plans that can help a lot during a hardship, for instance. You will have to abide by the rules of your new lender, and there isn’t much flexibility here.

3. You might get locked into a fixed repayment plan:

Once you have refinanced your student loan, it’s very likely that you will get locked with a fixed repayment plan and fixed interest rate. This means that you won’t be able to switch from one type of repayment to another during the life of your loan. For example, federal student loans allow borrowers to modify their repayment terms and make them more flexible if they are in a difficult financial situation. This option might not be available when you refinance your loans with a private lender.

How do I refinance my student loans?

how to refinance student loans

Now that we know about the main benefits and disadvantages of refinancing student loans, we can take a closer look at how to refinance your loan.

1. Decide whether you should or shouldn’t refinance your student loan:

Before you apply and refinance your student loans, make sure that this is the best decision for you. You should know whether or not refinancing under a private lender will be beneficial for your situation ahead of time. Once you come up with a definite answer, it’s time to start applying. Also, you have to remember, if you refinance federal loans, your terms can get terminated.

2. Find the best lenders:

When you look for a private lender, make sure that you choose one which suits your needs and offers competitive interest rates and fees. You can get this information from online reviews or even by speaking directly with the loan specialists at different companies before deciding.

3. Choose the repayment rates and terms:

After finding a lender who is willing to refinance your loans, you will have to make a few crucial decisions. This includes the type of repayment plan and the monthly payment amount. There is a wide range of available options depending on your needs and budget.

4. Apply for student loan refinancing:

Once you compare different offers and find one that fits your situation, it’s time to apply for refinancing. When you fill out the application form, make sure that all details are correct and accurate. Otherwise, this may affect your credit score or even lower it if there are any mistakes on your file.

5. Start repaying with the new terms and plan:

Once you get approved for student loan refinancing, it’s time to start repaying your loans with the new terms and repayment plan. Ensure that you stay on top of your monthly payments and if you get any reminders about late fees, act immediately to avoid these.

Best student loan refinances companies:

Here are some of the best companies you can choose from when refinancing your federal or private student loans:

1. MPOWER Financing

2. SoFi

3. PenFed

4. Earnest

5. Discover Student Loans

6. LendKey

Conclusion:

When you refinance your student loans, it’s very important to have a clear idea about the benefits and disadvantages of this type of financing. Make sure that before making any decision, you research different lenders and see what they have to offer in terms of rates, fees, repayment plans, and so on. Good luck!


What is International student loan refinancing, and how does it work?
December 29th, 2021 by Sagnik Santra

international student loan refinancing

Some people think of international student loan refinancing as a means to get out of debt. Others, however, see it more like an investment in their future. The truth is that there are many different ways to approach this topic, and for some people, the best option may not be apparent at first glance. This article will help you understand what international student loan refinancing is and how it works so that you can make informed decisions about your financial future.

What is International Student Loan refinancing?

International student loan refinancing is a financial product that allows borrowers to take out new loans at lower interest rates than their current loans. Unlike federal student loans issued by the Department of Education, these loans come from private lenders such as banks and credit unions.

The terms and conditions of international student loan refinancing can vary from lender to lender, but most loans have a fixed interest rate and a set repayment term. Borrowers can usually choose between a range of repayment options, including traditional fixed monthly payments, interest-only payments, and graduated repayment plans.

How does it work?

International student loan refinancing works similar to federal student loan consolidation or home mortgage refinancing. Borrowers who refinance their loans get access to better rates and longer repayment terms, which can help reduce monthly payments.

These days, students have more options than ever when managing their educational debt. While taking out new loans to refinance old ones may seem like an unnecessary complication, it can be a smart move for students who want to lower their monthly payments and improve their financial future.

Benefits of Refinancing

international student loan refinancing

There are several benefits to refinancing your loans with a private lender, including:

1. Reduced interest rates of your student loans:

International student loan refinancing offers borrowers the opportunity to take out a new loan at a lower fixed interest rate than their current loans. This can help students save money on interest over time and have more funds available for other things, such as building their credit score or getting ahead on their retirement savings.

2. Extended repayment terms:

Another benefit of refinancing is that borrowers can access longer repayment terms than federal student loans. This means lower monthly payments over the life of the loan. Borrowers who have trouble keeping up with their current monthly payments may find this option helpful.

3. More repayment options:

Most international student loan refinancing products offer borrowers a range of repayment options, including traditional fixed monthly payments, interest-only payments, and graduated repayment plans. This gives borrowers more flexibility in managing their debt and can help make monthly payments more manageable.

4. Better customer service:

Companies that offer to refinance international student loans are constantly improving their customer service and making the process as simple as possible. Many lenders have trouble keeping up with demand for this option, which means that if you qualify, you probably won’t have a difficult time getting your loan approved.

5. Builds credit history:

One final benefit of refinancing is that it can help borrowers build their credit history. This is because when you take out a new loan to refinance an old one, your new loan will be reported to major credit bureaus. Over time, this can help you establish a good credit score and access a broader range of financial products.

Disadvantages of Refinancing

international student loan refinancing

While international student loan refinancing has several positive benefits, it isn’t the right option for everyone. Before you jump into this type of debt consolidation, take a moment to consider the following disadvantages

1. New credit inquiries:

One potential disadvantage is that taking out a new loan will result in multiple hard inquiries on your credit report. This can temporarily lower your credit score and make it more challenging to take out other loans in the future.

3. Not available for all students:

Another downside is that not all borrowers will be eligible for student loan refinancing. This is because lenders typically have stricter eligibility requirements than the federal government. To qualify, you’ll need a good credit score, steady income, and a low debt-to-income ratio.

4. Origination fees:

Another thing to consider is that most lenders charge an origination fee for their refinancing products. This fee can range from 1-5% of the total loan amount, so it’s important to factor this into your calculations before you decide to refinance.

5. Requires higher credit scores:

Finally, it’s important to note that some lenders have more stringent credit score requirements than the federal government. You’ll need a strong credit profile and a decent-paying job to qualify for refinancing. Those who don’t meet these criteria may not be eligible for this option.

Who should go for refinancing?

People with good to excellent credit looking for a lower interest rate and a longer repayment term may want to consider refinancing their international student loans. These borrowers can potentially save thousands of dollars over the lifetime of their loan by taking advantage of this option.

Who should not go for refinancing?

Borrowers with poor credit or high debt levels may not qualify for international student loan refinancing. In this case, student loan consolidation and student loan refinancing are not options, and borrowers should consider other alternatives to help with their loans, such as federal income-driven repayment plans or private student loan refinancing.

Borrowers who don’t have a steady source of income should also avoid refinancing their international student loans, as they may not meet the eligibility requirements of most lenders.

Best international student loan refinancing companies

international student loan refinancing

The best student loan refinancing companies will provide international students with personalized attention and help find them the lowest interest rate possible. When choosing a lender, consider products offered, customer service, repayment options, terms of service, account management tools, eligibility requirements, rates & fees, etc.

1. MPOWER Financing:

MPOWER Financing is a student loan company that offers loans with no collateral and no cosigner. They work with you to build your credit and offer career guidance, too.

Details:

Fixed APR: 6.99-7.99%%

Credit score requirement: Not required

2. Sofi:

Sofi is a student loan refinancing company that offers competitive interest rates and a range of repayment terms. Because of its outstanding customer service, leading-edge technology, and ethical business practices, Sofi is one of the finest companies in the student loan refinancing industry.

Details:

Variable APR: 1.74-6.59%

Fixed APR: 2.49-6.94%

Credit score requirement: Not required

3. Commonbond:

Commonbond is one of the best lenders that provides student loan refinancing to borrowers with good credit. This company prides itself on exceptional customer service, low rates, and personalized repayment terms.

Details:

Variable APR: 1.99-5.61%

Fixed APR: 2.98-5.79%

Credit score requirement: 680 (The higher, the better)

4. Citizens Student Loan Refinance:

Citizens Bank is a well-known bank that offers student loan refinancing to borrowers with good credit. This company has a wide variety of repayment terms and competitive interest rates.

Details:

Variable APR: 2.24-8.90%

Fixed APR: 3.74-7.99%

Credit score requirement: 650+

Conclusion:

So now you know a little more about international student loan refinancing. This article explored what refinancing is, who should consider it, and the best companies. We also outlined the eligibility requirements and rates & fees associated with refinancing.

If you want to refinance student loans, be sure to shop around and compare interest rates and terms from different lenders. By doing so, you can find the best deal possible and save yourself thousands of dollars over the life of your loan.


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