Marcus Marion, CMA™ Those who have taken out private student loans are in an unusual circumstance. Contrary to most loans, it’s likely that when you applied for yours, your credit wasn’t great on its own, and you might have even required a co-signer.
Since you’ve made your loan payments on time, you may soon be eligible for improved rates and conditions or have your co-signer removed from the loan altogether. However, the question remains: given your circumstances and objectives, which is the most suitable company for refinancing your student loans?
We analyzed several USAA student loan refinance options using various criteria—from loan amounts and varieties to interest rates, availability, and repayment schedules—to help you discover debt consolidation options ideal for your financial situation.
So continue reading to find the seven best USAA student loan refinance companies to help with student loan consolidation and relief for individuals from diverse walks of life.
1. Earnest
Earnest has two significant advantages over other lenders. First, you can miss one payment per year if you have made all your payments on schedule for the past 12 months. But that payment just gets added to the final amount of your debt, and interest will still be charged on it. You can only initially use 12 months of forbearance before it reduces your remaining time by one month for every occasion. However, it provides budgetary leeway if it’s required.
Earnest also provides borrowers with an unrivaled variety of different loan facilities. Earnest allows you to choose from up to 180 different USAA student loan refinance terms at intervals of as little as one month rather than being limited to a handful of alternatives at five-year intervals.
That allows you to settle on a better payment plan with your finances. That is the first step in obtaining a price estimate. You begin by informing Earnest of the maximum amount you can spend on a monthly payment, and the process continues, or use a USAA student loan refinance calculator.
Pros
- Adaptive loan structures
- Chance to skip a payment
- Overseas students can use Prodigy loans.
Cons
- Refuses to accept co-signers
- There are limits for people from many states.
- Reduced forbearance period with skip-a-payment option
2. ISL
Although the term “Iowa Student Loan” might lead you to believe otherwise, this nonprofit lender, except Mainers, serves borrowers throughout the country. Its favorable interest rates make it an attractive refinancing choice for everyone, but borrowers with parent loans stand to benefit from it in particular.
To begin, consider whether or not you are eligible for a graduated repayment plan, which can assist in simplifying the process of making payments and is especially helpful if you are making a career shift. A lower interest rate will be offered to those serving in the armed forces.
Finally, unlike most private student loan providers, ISL provides a loan discharge program in the event of permanent disability or death, just as is the case with federal student loans and USAA federal student loan refinance schemes.
Although it’s unpleasant, parents have a larger risk of experiencing a tragedy than recent college grads. You and your loved ones are better protected when you select a loan with these features.
Pros
- Diverse payment schedules
- Not requiring an academic degree
- Loan cancellation upon death or irreversible incapacity
Cons
- Offers loans with variable interest rates.
- Not available to DACA recipients
- Inaccessible to Mainers at this time
3. Splash
Splash Financial is another online marketplace for student borrowers looking to refinance. It caters solely to borrowers interested in refinancing their existing loans and has relationships with a select group of lenders to whom applications cannot be submitted elsewhere.
As a result, you can easily compare rates from multiple lenders all at once. However, Splash Financial does not reveal which lenders are part of its network.
Since Splash Financial‘s role is limited to a matchmaker between you and other lenders, its use presents few risks. However, the lenders in its network do not provide refinancing choices to students who still need to complete their degrees.
Pros
- Super cheap rates
- Options that doctors and nurses can afford
- May permit partners to refinance loans jointly
Cons
- It is inaccessible to those who still need to finish their degrees.
- There are different ways to borrow money.
- Joining a credit union could be a requirement.
4. Laurel Road
It’s common knowledge that specific careers, like those in law and medicine, come with a hefty price tag. Among the few financial institutions, Laurel Road prioritizes serving high-balance borrowers, particularly those in the medical field. Laurel Road may provide lower interest rates, more flexible refinancing choices, and payments as low as $100 per month if you are a medical resident or fellow.
However, Laurel Road’s refinancing solutions cover more than medical professionals like doctors and x-ray technicians. It also provides several opportunities for others to cut costs. Suppose you sign up for other banking services Laurel Road offers and meet certain prerequisites (usually easy to meet). In that case, you may be eligible for even lower rates when refinancing your student loans.
Pros
- Extremely low interest rates for the refinancing of student loans
- Children can assume parental student loans.
- Special perks for people who work in the medical field
Cons
- Few opportunities for associate degree holders
- It doesn’t let you put off paying while you go back to school
5. PenFed Credit Union
If you and your spouse want to consolidate your existing private student debts into a single loan, PenFed Credit Union is one of the handful of lenders who will help you. This is helpful if you and your partner are looking at USAA student loan consolidation solutions with lower interest rates.
If you don’t refinance your loans together, you’ll each have to apply for a new loan, increasing the total amount of interest you pay by one percentage point.
PenFed is a wonderful option if you require a co-signer and renew your loans independently. PenFed has a lenient co-signer release policy, wherein your co-signer’s liability can be discharged after as few as 12 on-time payments, provided you meet all other eligibility requirements on your own.
Pros
- Quick release time for co-signers
- Everyone is welcome to apply for membership.
- Enables married people to refinance their loans together
Cons
- Must be a member of the credit union
- Lacks adjustable rate loans
- A minimum of $5 must always be kept in a savings account.
6. SoFi
Compared to government student loans, private student loans are known for having fewer incentives. However, SoFi stands out from the crowd by providing membership perks to its borrowers, such as a job placement aid program, debt validation program, career coaching, financial management, exclusive occasions, and the SoFi Stadium club in Los Angeles.
Also, unlike many other lenders, SoFi will let college grads take on personal responsibility for repaying their parents’ student loans by refinancing them in their names. However, you should know that the loan approval process can take longer if you apply with a co-signer. Furthermore, once a co-signer is included on the loan, they can only be eliminated by refinancing the loan in just your name.
Pros
- Reliable aid for times of financial distress
- Career counseling, networking opportunities, and more
- Can you take over your parents’ loans
Cons
- Couples cannot refinance loans jointly
- More time-consuming to apply with a co-signer.
7. Credible
Credible isn’t technically a lender, but it does act as a marketplace by providing access to customized prequalified rates* from many providers. It’s a dating service for people looking for loans, except it specializes in student debt refinancing. Credible makes it easy to narrow down your options by clearly stating which banks it has relationships with. It’s a simple and quick way to compare rates from its network of 10 participating lenders.
Credible even has a “best rate guarantee” wherein if you discover a better deal from a non-partner lender, they will return you $200—making it ideal for how to get out of debt on a low income.
As with any loan marketplace, the negative is that you will still need to research to see whether or not the individual lenders offer the specific services you require while avoiding phishing schemes and debt settlement scams. Plus, they’re available to answer all your questions, like ”Does debt consolidation affect buying a home?”
Pros
- Super cheap rates
- Guaranteed lowest price of $200
- Plenty of options for financing
Cons
- Loan alternatives could differ.
- It may require becoming a credit union member
- Specific partner lenders are limited to a single state.
Wrapping Up
Are you among the average 43.4 million borrowers who owe over $40,000 in student loans, which amounts to $1.606 trillion? Many factors influence the decision to refinance student loans, although certain lenders come out on top more often than others, making debt consolidation loans for bad credit individuals possible.
ISL Lending is an excellent option if, for instance, you want to free your parents from the financial obligation of the student loans they took out to pay for your education.
For instance, when looking for a mortgage, Earnest is a solid alternative for most people. It provides the best flexibility, allowing you to find the best solution for your needs and finances rather than being limited to a predetermined set of choices. The sooner you repay your loan, the sooner you can get on with your life, and this can assist you in doing just that.
