Any student loan borrower would be happy to know that they can get a lower interest rate on their Great Lakes student loan. Yes it is true and you just need Great Lakes student loans consolidation and refinance to a lower interest rate by simply applying for refinancing through a private lender.
You will be surprised to know that the whole process is very simple and many students do it. The surprising fact is that around 95,000 people refinanced their student loans last year.
In this article we will discuss how you to get a better deal on your student loans.
Refinancing simply means you can get a new loan at a lower interest rate. The process involves paying off your old loans and getting a new one with different repayment terms and at lower interest rate.
The whole process goes by taking a new loan from a private lender, and replacing your old loan, or multiple, different loans, with a single new one with new terms and interest. The refinancing will help you save lot of money and that too from the very first payment.
Here you should also know that loan refinancing is different from student loans consolidation but many people think these both terms are same. Generally great lakes student loans consolidation refers to taking out a Direct Consolidation Loan and combining all your federal student loans into one loan with one interest rate.
Although there are many similarities between refinancing and consolidation but you should know that consolidation does not offer any interest savings.
Also, students who have borrowed private student loan, they are not eligible for student loans consolidation. So this means, refinancing will be a good option for them and also for those with a combination of federal and private student loans.
Usually people go for refinancing as it helps them save money in interest over a long run. For an example, when you have loan at an interest of 8% then by refinancing process you can get loan at a lower interest rate thus saving you a lot of money.
Refinancing your federal loans with a private lender can help you:
As discussed above there are many benefits of refinancing for loan. If you want to lower your monthly loan installments then you can extend your loan term.
If your financial condition is good and you think you can get out of debt easily by paying installments on time then choose a shorter loan term. With timely payments you can and shorter loan term you can save more money.
The requirements of each lender would be slightly different, but by plugging your loan details into an online refinancing calculator, you can get a ballpark definition of how much you can save.
Always do your research by looking different loan lenders’ rates. Choose the one that offers low interest rate upon refinancing. Finding your rate requires a “soft” credit check, so it won’t impact your credit.
When multiple rates have been compiled, you can choose the one that works best for you. The lender you prefer depends on your refinancing priorities, such as lowering interest rates, adjusting the terms of the loan or monthly payments.
Be sure that you compare those rates to what you pay on your student loan from the Great Lakes, too. You will be surprised to know that if your credit score is good then you can get best lower rates from your private lenders.
Also, it is always good to check your federal student loan one more time before you refinance your loan from a private lender. The reason behind this is that you are looking to lower your interest rate and you should only opt for it if you get a better offer and low interest rate. If that does not happen with a private lender, it doesn’t make sense to refinance.
After you are done with your research, go to the websites of your selected loan lenders. From there you can get some rate quotes.
Most of the lenders will give you the option of a “soft-pull” quote and they will ask you to answer few of their questions. This is called soft pull as those lenders won’t pull your credit score.
Now you have to gather all your information together. Different student loan lenders may ask you for different details but generally the standard paperwork includes:-
Even before applying for student loans consolidation and refinancing, be sure to review your credit score. When deciding your interest rate, many private lenders highly consider your financial history and credit score.
Your credit score would be excellent if your student loan payments were paid in timely manner. Once your private lender knows that you have been paying your student loan payments on time they would offer you lower interest rates.
When you select your private loan lender for refinancing your loan, you should also take few factors into consideration.
The most important thing that you need to remember is that you should never refinance your federal student loans if you ever want to receive student loan forgiveness and the reason behind this is that the process is irreversible.
You can fill your student loan refinancing application online and the process may take around 25 minutes or so. Many lenders will allow you to fill an online application.
You will need to provide details about your financial life and existing loans. You’ll need info on your current student loans, plus your salary information and work history—so get those documents ready.
Note: – Never stop paying your Great Lakes student loans until your new lender accept and approve your application.
After you process your application, your new loan lender will grant you an offer that will have your new interest rate, your new monthly installments, and your loan term.
Once you accept the offer, the will talk with Great Lakes to take over your loan. But you should never stop paying your loan payments to Great Lakes until you verify that your balance with them is zero.