What Is the Process of Taking a Student Loan Refinance?


Refinancing student loans is a suitable way to save money. The process is simple, but it's helpful to know what's involved before you start.

Student Loan

Compare Rates

The next step is to compare student loan refinance rates from multiple lenders. The best way to do this is by using an online personal loan comparison calculator, which allows you to enter the information needed for all of your loans, including the interest rate and the number of months left on each debt.

Once you've entered your details into the calculator, it will give you an idea of what kind of rate you can expect for your student loan refinance based on the total amount borrowed and other factors like a credit score. The best part about using this tool? It will also tell you which lenders are offering those rates so that it's easy for you to decide who has the best deal when comparing them side by side.

According to Lantern by SoFi, "Personal loan offers provided to customers on Lantern do not exceed 35.99% APR."

Collect Your Documents

You may need a copy of your IRS tax return, proof that you're employed (and earning enough wages or salary), and copies of any additional financial obligations listed on your credit report, like child support payments or alimony payments.

Once you've collected all the necessary paperwork, contact your loan servicer or servicer of choice and find out how to get them sent over—either electronically or by mail—so they can be included in your application. If possible, try getting everything together at once; otherwise, expect multiple rounds of document collection, as new lenders require additional documentation before processing each stage of their approval process.

Apply Online

Once you have decided to refinance your student loans, the next step is to apply. This can be done online whenever you want. However, it's best to plan ahead and start early if you're going to do this. The process takes a few steps, and many things could happen in between each step. First, you'll want all the information about your loans written down before starting so that nothing gets missed along the way!

Get Approved

Once you've submitted your application, the lender will review it to determine whether they can provide you with a loan. If they approve your application, they'll send you documents to sign and a letter with instructions on how to pay off your student loans. If they decline your application, they will explain why in writing. It's best to look into other options if this happens—you might have been approved before and need more information or proof of income.

Sign Your Loan Docs

The signing documents process is a one-time ordeal you'll never have to do again. Instead, the lender will guide you through the steps, but they should be simple.

After submitting your application and documentation through the lender's website, an account executive will review your information and request additional documents if needed. Once all the paperwork is submitted successfully, an email confirmation will be sent to confirm that your loan has been submitted for processing. The lender will contact you with an approval decision within 24 hours of receiving all required documentation.