United States - Apply for Private Refinance Loans

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Procedure

1. Carefully choose a bank or financial institution that offer refinancing and consolidation of student loans. Weigh in your options and if possible compare rates and repayment schemes.
2. Get in touch with the bank and see what are their eligibility requirements and documents you will need to present or submit to have your student loan refinanced.
3. Check if you will need a cosigner or if the bank offer cosigner release.
4. Gather and submit all the required documents.

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Required Documents

List down the documents required for successfully completing the procedure.

e.g.
1. Proof of child birth from the Hospital.

Office Locations & Contacts

Here's a link to an article from a blog that has a list of banks that offers refinancing and consolidation of student loans - Link

Eligibility

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Fees

Origination fee: Some banks charge a student loan origination fee up to 2% of the total amount you are requesting to be refinanced. Let's say you had a $50,000 student loan refinanced with a 1% origination fee which is $500. The origination fee is usually added to the loan amount due and you will not need to pay this amount upfront.

Validity

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e.g. Birth Certificate Valid Forever

Documents to Use

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Sample Documents

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Processing Time

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Related Videos

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e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

Things to consider when you are thinking of having your student loans refinanced:

1. Term of the refinanced student loan: Banks and financial institutions normally offer 5, 10, 15, and 20 year repayment terms. You must take into consideration how much you can afford to pay now, and how much interest you will accrue over the lifetime of repayment.
2. Variable versus fixed rate: By having your loans refinanced, you can convert a variable interest rate to a fixed interest rate loan or vice versa. Fixed interest rates tend to be less risky, whereas variable interest rate loans fluctuate due to economic conditions. Due to the 2008 recession, interest rates over the past 4 years have been historically low. If the economy improves, interest rates will most likely rise over time, making variable interest rate student loans less favorable when compared to fixed rate student loans. In the current economy, fixed rate student loans tend to have a higher interest rate, which means you might end up paying more interest over the long term.
3. Repayment terms: When and how you will pay and how much you will need to pay in case of default.
4. Origination fee: Some banks charge a student loan origination fee up to 2% of the total amount you are requesting to be refinanced. Let's say you had a $50,000 student loan refinanced with a 1% origination fee which is $500. The origination fee is usually added to the loan amount due and you will not need to pay this amount upfront.
5. Possibility of combining a federal and private student loans: This can help you get a lower interest rate and save money, but be careful as you lose most alternative and flexible repayment plans associated with the federal government loan program.
6. Check if you will need a cosigner or if the bank offer cosigner release: You may be required to have a cosigner if your income or credit score is too low
7. Credit score, salary, and debt-to-income requirements
8. Maximum amounts of debt the bank is willing to refinance: The amount varies by bank and education level, such as undergraduate, graduate, and other certificate programs.
9. You will also need to check if the bank refinance student loans from your school and/or your degree program: Some banks dont lend to student loan borrowers who have attended for-profit private institutions, community colleges, and/or certificate programs.
10. The bank's support or customer service: Taking into consideration the bank's support or customer service can save you a lot of headache and stress in the future, remember loan refinancing can last for years, you do not want to be stuck with a company with terrible customer service.

Required Information

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e.g.
1. Date of Birth.
2. City or County of Birth.

Need for the Document

Some borrowers manage their student loans repayment situation by having it refinanced and in a way improve their financial health.

If you are thinking of doing the same you must be aware that student loan refinancing can be confusing and lead to financial problems in the future if you dont make the right decisions when applying for refinancing or consolidation.

Following is a procedure on how you can get your student loans refinanced.

Information which might help

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Other uses of the Document/Certificate

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e.g. Birth Certificate can be used as proof of identity.

External Links

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Others

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