Can You Refinance Sallie Mae Student Loans?

Sallie Mae offers private student loans to help students pay for their education. After you graduate, you may be able to refinance Sallie Mae loans with Sallie Mae or with another lender.

There are many benefits to refinancing student loans, but not everyone. Here is what you should consider before refinancing your Sallie Mae loans.

How to refinance Sallie Mae student loans?

If you have Sallie Mae student loans, you can refinance them with Sallie Mae or another private student loan company that offers refinance loans. You can start the refinancing process by shopping around and comparing student loan refinancing interest rates and other terms.

Many lenders allow you to pre-qualify before submitting an application. Prequalification doesn’t require a serious credit check, so it won’t impact your credit score, but it can give you an idea of ​​your chances of getting approved and what your loan terms might be. .

Once you have found a lender that you like, you will submit an application. If you are approved and accept the loan offer, the lender will pay off your Sallie Mae student loans and you will start making payments to the new lender in the future.

When Should I Refinance My Sallie Mae Student Loans?

Here are some reasons you might want to refinance your private student loans with Sallie Mae:

  • You are entitled to a lower interest rate than what you are currently paying.
  • You want to shorten your repayment period and pay off your loans faster.
  • You are having financial difficulties and want to switch to a longer repayment term.
  • You had a bad experience with Sallie Mae and want to refinance with a lender who has good customer service.
  • You are a parent who has borrowed money on behalf of your child and you want to transfer the debt to them.

Think carefully about your situation and why you are considering refinancing. Also, keep in mind that it’s best to wait to refinance until you have a solid credit rating and income. While the minimum credit score requirements for refinancing may be in the mid-600s, for example, having a higher credit score will give you the lowest rates.

The prequalification process can give you a good idea of ​​what you qualify for based on your current credit and income situation.

What are the advantages of refinancing?

Refinancing Your Sallie Mae Student Loans can have a positive impact on your student loan repayment plan. Here are some of the main benefits you can enjoy:

  • Lower interest rates: You may be eligible for a lower interest rate, which can save you hundreds or even thousands of dollars on your loan. Refinancing is a particularly good idea if you have a variable rate but want to lock in a fixed rate when interest rates are low.
  • Payment flexibility: If you want to speed up your repayment or reduce your payment with a longer term, you cannot shorten or extend your repayment term with your current lender. With student loan refinancing, you can choose a repayment term ranging from five to 20 years, depending on the lender. Whether you want to prepay your debt or extend your term to lower your payment, refinancing lets you make that choice.
  • Different functionalities: Each lender has their own set of features that borrowers can take advantage of. If you find a lender who offers a benefit that you don’t get with Sallie Mae, refinancing and moving your debt to the new lender can give you access to what you’re looking for.
  • Getting off debt: If you are a parent who has borrowed to help your child complete school, some refinance lenders allow you to pass that debt on to your child. Both parties will need to come to an agreement and your child will need to be able to take on the debt on their own. If they don’t, you may need to co-sign the loan application, but it can still be a good way to offload that payment responsibility.

Next steps

Refinancing Sallie Mae loans can save you money, have a little more control over your repayment plan, and take advantage of features that you may not currently have. To determine if refinancing your loans is a good idea, start by looking at current student loan refinancing interest rates and compare Sallie Mae’s features with those of other lenders.

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About Judith J. George

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