How to Refinance Sallie Mae Student Loans
Thinking about refi? This article dives into how to refinance with Sallie Mae and what factors you should know about their services.
If you've never refinanced your student loans before, you might assume that all refinancing is done with your current lender. If you've looked into refinancing your Sallie Mae student loans - and discovered that they don't currently offer refinancing - you may be wondering what to do next.
In reality, refinancing often involves changing lenders. Juno offers refinancing options through several different lenders, along with some extra perks for starting the process with Juno. Here's what you need to know in order to choose the best option.
Can You Refinance Student Loans with Sallie Mae?
Sallie Mae is a student loan company that provides loans for both undergraduate and graduate degrees, including medical school and law school. Sallie Mae only administers private student loans currently, but they used to be a federal loan servicer.
Sallie Mae only services private student loans; they do not offer their own refinancing. If you're interested in refinancing your Sallie Mae student loans, you'll have to apply with a different company.
Sallie Mae also does not provide student loan consolidation. Consolidation means grouping different loans together into one new loan. When you refinance, you can opt to refinance several different loans together in order to consolidate. Consolidating will simplify the repayment process, turning many payments into one.
Should You Refinance Sallie Mae Student Loans?
If you have a Sallie Mae loan, you should verify whether it's a federal or private loan before refinancing. Refinancing federal loans will strip away benefits like loan forgiveness, income-driven repayment options, and long deferment periods. But if you have a stable job and a sizeable emergency fund, you may consider refinancing federal student loans in order to save on interest.
If you have private student loans, refinancing doesn't come with any negative side effects. That's because private student loans often carry high-interest rates. Current interest rates for Sallie Mae loans can range as high as 12.60% APR for fixed-rate loans and 11.23% APR for variable-rate loans. But if you have a good credit score and are employed, you can refinance your student loans for a much lower rate.
You can decide to refinance your student loans for the same repayment term, a shorter term, or a longer-term. In general, loans with short terms will have lower interest rates than loans with longer terms. Look at your overall budget and decide whether you would rather have a lower monthly payment or a lower total interest burden.
When you refinance, you can choose between a fixed-rate loan and a variable-rate loan. A fixed-rate loan will have the same payment the entire loan term, while payments on a variable-rate loan may increase or decrease. The changes depend on overall market conditions.
How to Refinance Sallie Mae Loans
Curious about refinancing Sallie Mae loans? Try refinancing your student loans through Juno. There are three Juno lending partners that borrowers can choose from. Borrowers can even check potential interest rates without harming their credit.
Check out the options available through Juno:
Earnest provides an extra .25% interest rate discount to Juno borrowers, making it better to go with Earnest through Juno than through Earnest directly. Fixed interest rates start at 2.25% APR, and variable interest rates start at 1.63% APR. These are the lowest rates out of any lender on this list.
Earnest is the only Juno-supported lender that does not allow cosigners. Only borrowers with a strong credit history may be eligible to refinance with Earnest. You can always check your rates with Earnest and find out if you qualify to refinance.
Splash is a lending marketplace. When you apply to refinance a loan with Splash through Juno, you'll be matched with several lenders that will work with you. From there, you can choose which lender fits you best. Fixed interest rates start at 2.49% APR, and variable interest rates start at 1.88% APR.
If you refinance with Splash through Juno, you'll be eligible for a cash bonus depending on how much you refinance. If you refinance between $50,000 and $150,000, you'll receive a $500 bonus. If you refinance more than $150,000, you'll get a $1,000 bonus.
Splash accepts cosigners, which is helpful for borrowers who have trouble qualifying for a loan by themselves.
Through Juno, Laurel Road offers student loan refinancing to medical professionals, including physician assistants, dentists, optometrists, nurses, and doctors. Fixed interest rates start at 2.75% APR, and variable interest rates start at 1.74% APR.
Laurel Road allows cosigners, which may be helpful for borrowers who don't have a strong credit history. Borrowers who refinance with Laurel Road through Juno will be eligible for a .25% interest rate discount that is not available if they go through Laurel Road directly. Doctors who refinance with Laurel Road through Juno will be eligible for $100 monthly payments during residency and fellowship.
Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins.
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