How Long Does Refinancing Student Loans Take?
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What Is the Student Loan Refinance Process?
Step 1: Check Your Credit Score
Step 2: Shop Around for Refinancing Lenders
Step 3: Select a Loan Offer
Repayment options offered by the lender Repayment terms, which are typically 5, 7, 10, 15, or 20 years Monthly payment, which is directly related to the length of the repayment term Annual Percentage Rate (APR), which includes any upfront charges and fees the lender may add to the loan principal Fixed-rate vs. variable rate interest Potential fees
Step 4: Apply for a Student Loan Refinancing Loan
Loan servicer information Government-issued I.D. Proof of income, such as pay stubs and tax return Student loan account number(s) Loan balance Your degree, as proof of completing your education. (Note: You can refinance while still in school with some lenders, but it may not be a good move just yet.)
Step 5: Sign and Refinance
How Long Does It Take to Apply for Student Loan Refinancing?
How Long Does It Take for a Lender to Process an Application?
Total Time to Refinance Student Loans
3 Student Loan Refi Tips
Once the pandemic-related pause on federal student loan payments ends, going back to making payments may be hard on budgets. One solution is to refinance to a lower interest rate, longer loan term, or both, depending on your situation. (The tradeoff is that you’ll be forfeiting federal benefits such as repayment programs.) Find and compare your student loan refinance options. Paying extra each month on your student loan can reduce the interest you pay and so lower your total loan cost over time. (The law prohibits prepayment penalties on federal or private student loans.) Depending on their income, qualified borrowers can deduct the interest they pay for student loans, both federal or private, up to $2,500 per year. The deduction phases out for modified adjusted gross incomes of $70,000 to $85,000 for single individuals and $145,000 to $175,000 for people married and filing jointly.
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