Refinancing of Education Loan: All You Need to Know

Do you want to reduce the burden of the high-interest rate on your education loan? Is your education loan costing you a huge repayment amount in the long run? If your answer is yes, then refinancing of your education loan is certainly the right option for you. It is the process of taking up a new loan at a new and lowered rate of interest to pay off the existing loan. It can turn out to be a boon for all those students who are facing problems in paying off their existing study loan on time.

Scholarship Registration and Login

Being an entirely different phenomenon from consolidation, people often erroneously use both the terms parallelly. While a refinancing can help you in saving on interest rates, consolidation does not offer any kind of interest savings. Additionally, refinancing has a cutting edge over consolidation for the students who have borrowed a student loan from private organizations or those who have a combination of private and federal education loan.

Also read: How to manage your education loan?

Why prefer refinancing for Education Loan?

Whether you wish to get out of the debt faster or save money, in both the conditions, refinancing a student loan can turn out to be helpful in the following ways.

Lower monthly payments

With the help of refinance, the students get the flexibility of extending their repayment period and reduce the rate of interest on the new loan. This further reduces the amount of monthly payment as well.

Shortened loan term

If you are capable of making higher contributions that the existing repayment plan, you can shorten your loan term with the help of refinance, that too at lowered rate of interest.

Lower interest rate

You can also reduce the interest rate of your new loan on the basis of your respective financial situation and credit score.

Career Assessment Test

Releasing a co-signer

A student loan refinancing can help students to release their co-signers from the burden of loan thereby improving their credit scores as well.

Also read: 6 factors to consider before taking an education loan

Important tips to consider for refinancing of Education Loan

Now what to do after you have decided to apply for an education loan refinance considering your existing financial situation? You need to take the following additional key factors into consideration as well.

Your credit score

The chances of your refinance application getting accepted depends majorly on your respective credit scores. A credit score of 700 or higher is considered as a good score to maximise the chances of approval.

Your employment

Getting an education loan refinances essentially requires you to have a permanent job. A written offer of a job could also work in specific situations. Most of the lenders give preference to students having a certain amount of work experience.

Buddy4Study - Education Loan

Your debt-to-income ratio

This is yet another criterion that helps the lenders in giving approval to the refinance applications. This ratio compared your total monthly income with your overall debt obligations within a month.

Having these facts intact in your mind, you can start looking up for the organizations that offer refinancing services. However, it is advisable to make sure that you do your Education Loan market research about the interest rates and other factors before applying.

COLLEGE BOARD INDIA SCHOLARS PROGRAM

Disclaimer

  1. Source of Information: Buddy4Study app compiles details on scholarships/fellowships from government websites and private scholarship sources. Links to the official sources accompany each listing detail pages.
  2. Non-affiliation: The Buddy4Study app is not associated with any government entity in India or elsewhere. When featuring government scholarships, we rely on publicly accessible information from central and state government websites in India.

Scholarships For

Upto Class 8 Class 1 to10 (Pre-Matric) Class 9 to 10 (Pre-Matric) Post-Matric(Class 11-12) Class 11 & 12 Class 12 passed Polytechnic/Diploma/ITI ITI Diploma/Polytechnic Graduation Post-Graduation Medical Engineering Girls NSP Portal Income Based SC/ST/OBC Law

Scholarship by State

NSP Scholarships Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal

Scholarships A to Z

Abdul Kalam Scholarship Aicte Internship AICTE NSP Scholarships Aicte Scholarship Aicte Swanath Scholarship Aikyashree Arunachal Pradesh scholarship Assam Scholarship Atul Maheshwari Scholarship Begum Hazrat Mahal National Scholarship Bihar Scholarship BYPL Sashakt Scholarship CBSE Scholarship Central Sector Scholarship CG Scholarship CG Scholarship Portal Chandigarh Scholarship Colgate Scholarship DCE Scholarship Delhi Scholarship Dhirubhai Ambani Scholarship Status of the Digital Gujarat Scholarship Disability Certificate Domicile Certificate Dr. Ambedkar Scholarship Dr. Ambedkar Scholarship, Haryana DRDO Scholarship Scheme For Girls DTE Scholarship in Maharashtra E Grantz E Grantz Login E Grantz Scholarship Status Kalyan Bihar Portal E Kalyan Status Epass Karnataka Ericsson Empowering Girls Scholarship Programme E. Samaj Kalyan Fellowships in India Gokdom Government Scholarships GSK Scholars Programme Gujarat Scholarship Haryana Scholarship Haryana Scholarship Portal HDFC Badhte Kadam Scholarship How to get a Caste Certificate HP Scholarship IET-India Scholarship Awards Immigration-Friendly Countries Income Certificate Indira Gandhi Single Girl Child Scholarship Inspire Scholarship Ishan Uday ITI Scholarships Jammu and Kashmir Scholarship Jharkhand Scholarship Jnanabhumi Application Status Kanyashree Karepass Karnataka Scholarships Kotak Kanya Scholarship Ladli Yojna Legrand Scholarship Mahadbt Mahadbt Login Mahadbt Scholarship Status Maharashtra Pre-Matric Scholarship Maharashtra Scholarship Manipur Scholarship MBA Scholarships in India MCM Scholarship Means Scholarship Meghalaya Scholarships Merck India Charitable Trust Scholarship Programme Merit Cum Means Scholarship For Minorities MHRD Scholarship MI Scholarship MOMA Scholarships MP Scholarship MP Scholarship Kyc MP Scholarship Portal MP Scholarship Status MYSY Scholarship Nabanna Scholarship Nagaland Scholarship National Scholarship Portal National Scholarship Portal (NSP) NMMS NSP Login NSP Renewal NSP UGC Scholarships Oasis Scholarship Oasis Scholarship Status OBC Scholarships Odisha Scholarship Olympiad ONGC Scholarship PFMS Login PFMS Scholarship Phd Scholarships PMRF PM Scholarship PMSSS Post Matric Scholarship Post-Matric Scholarship for Minorities Pragati Scholarship Pre-Matric Scholarship Pre-Matric Scholarship for Minorities Prerana Rajasthan Scholarship Rolls-Royce Unnati Scholarship Saksham Scholarship Programme for Drivers Children Saksham Scholarship Scheme Santoor Women's Scholarship SBI Asha Scholarship Programme SBI Education Loan SBI General Suraksha Support Scholarship Programme Schaeffler-India Hope Engineering Scholarship Scholarship Application Dos and Don'ts Scholarship Form Scholarships for Diploma Courses Scholarships for Indian Girls and Women Scholarships for North Eastern Students Scholarships for PG Students Scholarships for Undergraduates Scholarships in India Scholarship Status SC Scholarship SC ST Obc Scholarship Sensodyne Ida Shining Star Scholarship Programme Sitaram Jindal Scholarship SSP Scholarship ST Scholarship SVMCM Scholarship Eligibility Swami Vivekananda Scholarship Swami Vivekananda Scholarship Technip Energies India Scholarship Programme Telangana Scholarship The Tata Capital Pankh Scholarship Programme Top Scholarships for Medical Students Top Scholarships For Students Of Andhra Pradesh Tripura Scholarship Ugc Scholarship UP Post-Matric Scholarships UP Pre-Matric Scholarships UP Scholarship UP Scholarship Correction UP Scholarship Login UP Scholarship Registration UP Scholarship Renewal UP Scholarship Status Uttarakhand Scholarship Vidyalakshmi Portal Virchow Scholarship Programme VHTC WBMDFC West Bengal Scholarship