Save Time and Money by Applying Online for Student Loan Refinancing
It’s easy to forget how much more difficult and time-consuming everything was before the internet. The process of student loan refinancing once took several months and can now be finished in less than 2 weeks if done entirely online. In the past, many missed on great deals on their student loan refinancing because comparing information and incentives prior to the internet was difficult time-consuming. By using the internet, borrowers consolidating student loans today can save a great deal of time and money by quickly comparing lenders and submitting their applications online.
Step 1: Gather a list of potential lenders to handle your student loan refinancing
Lenders vary greatly in terms of the quality of service and the types of discount incentives they offer. These lender incentives can greatly impact the amount of money you will pay over the lifetime of the loan. A growing number of student loan refinancing lenders means more competition and greater savings for those consolidating student loans. The most effective way to compare student loan refinancing lender is to build a side-by-side comparison chart. Your goal will be to compare not only interest rates but money-saving discount plans as well.
Step 2: Compare the benefits of various student loan refinancing lenders
Once you gather a list of 5-10 lenders who specialize in student loan refinancing, it's time to cut through the talk and compare the facts and numbers that will determine the amount you will repay on your student loan. By looking around, you’ll gain familiarity with various terms and definitions used for student loan refinancing. Make a chart on an Excel sheet or Word document with several categories to compare including incentive offerings, ease of application, account maintenance options, whether the lender has a prominently displayed customer service number, years of experience, and loan specialization type.
Step 3: Calculate potential savings using online student loan refinancing calculators
Trying to calculate savings on a diminishing balance with various percentage rates is a complex task to undertake by hand. Fortunately, there are student loan refinancing calculators online that you can use to calculate potential savings based on your research. Running some numbers through the calculator can help you to determine the student loan refinancing lender that will save you the most money. Don’t forget to add in lender incentives which can really add up. ScholarPoint offers interest rate reduction incentives of up to a full 1.5% just for paying on-time with automated payments.
Step 4: Apply online
Thanks to the internet, borrowers no longer have to wait for weeks on end while student loan refinancing paperwork travels back and forth through the mail. With online applications and electronic signatures, borrowers can complete and sign loan application forms instantly. When forms are received electronically, the student loan refinancing lender can process the loan quickly since the data doesn’t need to be manually re-entered. The entire process today usually takes only a week or two as opposed to several months in the days before the internet.
Step 5: Track your loan application electronically
Some student loan refinancing lenders give you the tools to track your application as it travels through the process. In the same way, a shipping tracking number works, you can log in and find out exactly where your application is and when it’s expected to be completed. Having instant access to the timeframe of your loan completion can help you make financial decisions and organize for your next billing cycle.
Step 6: Being making lower payments
With an internet-friendly student loan refinancing lender that offers a quick application process, you can start making lower payments by your next billing cycle. When it comes to student loan refinancing, time truly is money. Unlike the days before the internet, you can potentially lower your bills by the end of the day instead of waiting around for several months.