Most, if not all, lenders require that you be a U.S. citizen or permanent resident in order to refinance your student loans. If your student loans are foreign, it is recommended that you build up sufficient credit in the United States to qualify for refinancing.
FAQs on the Best Student Loan Refinancing
Can You Refinance Federal Student Loans?
Yes, you can refinance federal student loans even when these types of loans offer a consolidation option. However, note that you will lose the benefits of the Federal Student Loan, including repayment options.
How to refinance a student loan?
First, decide if refinancing is the right option for you, as choosing to refinance your federal loan will eliminate various advantages of the federal loan, including low interest rates, repayment grace periods, and options to abstention / adjournment. Once you have made up your mind, you can research the rates online and choose the one that works best for you.
Should You Refinance Your Student Loans?
Refinancing your federal student loan is not the best option for everyone. Since federal loans generally have nice terms and benefits, switching to a private lender will eliminate all federal benefits. Therefore, it is important to check whether refinancing benefits you more than consolidating your federal student loan. If refinancing lowers your interest rate further and saves you money, it may be worth it.