For refinancing your federal and private student loans, LendKey student loan refinance is another top choice, offering student loan refinancing options with competitive interest rates.
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LendKey is an online marketplace and lending platform that enables customers to apply for and receive home improvement loans, student loan refinancing, and private student loans from their community banks and credit unions.
The ideal borrowers for its loans are those who would like to work with these organizations rather than a large bank. Since the typical refinance borrower with LendKey makes $90,000 annually, the company is a good choice for people with low incomes.
Explore the detailed information about LendKey student loan refinance, including its eligibility criteria, benefits, and considerations associated with LendKey’s student loan refinance program. This will be a valuable resource for student borrowers who want to manage their student loan refinancing without any hassle.
Explore our comprehensive guide on INvestEd Student Loans Refinance to uncover how this option can potentially lower your interest rates and simplify your financial journey.
LendKey Student Loan Refinancing at a Glance: Loan Details and Rates
| Fixed Rates (APR) | 7.11% – 11.18% |
| Variable Rates (APR) | Not Available |
| Loan Types | Federal and private student loans, including Private Parent Loans and Federal Parent PLUS Loans |
| Loan Terms | 5, 7, 10, 15 or 20 years |
| Loan Amounts | $5,000 – $250,000 |
| Minimum Credit Score | 680, 660 with co-signer |
| Minimum Income | $24,000 annually, $12,000 annually with a co-signer |
| Residency | US citizen or permanent resident |
| Cosigner Release | Available from some lenders, typically after a period of 12 to 36 qualifying payments |
| Degree | Associate’s degree or higher |
How to Qualify to Refinance Your Student Loans with LendKey?
To qualify to refinance your student loans with LendKey student loan refinance, you must have the following eligibility criteria. Let’s find out:
- Citizenship: You must be a US citizen or a permanent resident.
- Credit Score: Student borrowers must have a minimum credit score of 680, while those with a co-signer must have a minimum credit score of 660.
- Income: The minimum income you need to refinance is $24,000 annually, while the minimum income requirement with a co-signer is $12,000 annually.
- Loan Amount: Borrowers must have a minimum of $5,000 to refinance their student loans with LendKey student loan refinancing. The maximum loan amount is $250,000.
LendKey Student Loan Refinance Rates & Fees
LendKey offers student loan refinancing with competitive fixed rates ranging from 7.11% to 11.18%. Variable rates are not offered by LendKey. Borrowers can choose from various loan terms including 5, 7, 10, 15, or 20 years, providing the flexibility to customize the repayment period as per their financial preferences and goals.
It is important for borrowers to carefully consider the fixed rates offered by LendKey when refinancing their student loans. And then they should select a loan tenure that suits their financial situation and long-term plans, ensuring a suitable and manageable repayment structure.
Additional Fees
LendKey may or may not charge some additional fees to refinance your student loans. Let’s find out what those additional fees are:
- Application Fee: None (application fee for rates and approval).
- Disbursement Fee: The fee charged to lenders for allocating funds towards the repayment of refinanced loans is undisclosed or not specified.
- Loan Origination Fee: There are no loan origination fees involved, which typically apply to the initiation of a new loan.
- Late Payment Fee: Varies (fee associated with a late payment).
- Collection Fee: The fee for collecting defaulted debts is not specified or disclosed.
- Prepayment Penalty: There are no prepayment penalties, which are fees incurred for making extra payments to reduce the balance of a refinance loan or settling it ahead of schedule.
- Returned Payment Fee: The fee for a failed payment due to insufficient funds varies and is charged when a payment cannot be processed due to inadequate funds.
What Benefits You Get When You Refinance Student Loans with LendKey?
When refinancing your student loans with LendKey student loan refinancing, you can enjoy several benefits. Let’s check out what they are:
1. Lower Payments
When you refinance your student loans with LendKey, you can lower your interest rate, and your monthly payments, and save thousands of dollars over the tenure of the loan.
2. Make Your Finances Simpler
You can use LendKey to combine all of your student loans – federal and private student loans, including graduate loans, into one easy-to-use loan at one good rate.
3. Flexible Terms
LendKey offers flexible repayment terms ranging from 5 to 20 years, allowing you to choose a plan that best suits your financial situation and goals.
4. Cosigner Release
Some lenders offer cosigner release which typically occurs after a period of 12 to 36 eligible payments.
5. Online Platform
The lender’s online platform can provide a user-friendly experience for LendKey student loan refinance, making it convenient to manage your loan and access resources.
Advantages and Disadvantages of LendKey Student Loan Refinancing
Advantages
- Multiple loan term options ranging from 5 to 20 years.
- 18-month forbearance period that is longer than many lenders.
- Without a hard credit check, you can find out if you qualify and what rate you’ll get.
Disadvantages
- There is no option to defer payments if the borrower re-enlists in the military or returns to school.
- Maine, Nevada, North Dakota, Rhode Island, and West Virginia do not offer the loan.
How Does Student Loan Refinancing Work?
Whether you borrow money from a private lender or the Department of Education, you agree to certain terms of employment when you take out a student loan. Important details, such as the payment schedule and the interest rate applicable to your loan are included in these terms.
When taking out loans while in college, you usually have little control over the terms that will apply to you. Private lenders will modify their terms based on your credit score or that of a co-signer and the government sets interest rates for federal student loans.
However, this doesn’t mean you’re stuck with your current student loan repayment plan. By going through a process called student loan refinancing, you can renegotiate your terms, especially interest rates, to get a better deal.
How to Start a LendKey Student Loan Refinance Process?
Federal student loans and private student loans are your two options for refinancing your student loans with LendKey student loan refinance, depending on the type of loan you have.
Federal Student Loans: If you have federal student loans, you can usually refinance them through the government’s Federal Direct Consolidation Loan program.
Private Student Loans: If you have private student loans, you’ll have to deal with a private lending organization, such as a bank or credit union.
Combine Federal and Private Student Loans: It is possible to combine federal and private student loans into one new loan that has better terms, rates, and only one monthly cost that is easier to monitor. But, a private bank or credit union must be used for the transaction.
Remember that the benefits associated with federal student loans will disappear if you refinance them.
How It Works
- Include a list of all existing student loans with your application.
- Once your application is approved, your new lender will repay all the debts you want to consolidate in full.
- With just one monthly payment, you’ll have a single, refinanced loan that represents the full amount of your previous loans, all refinanced at a lower interest rate.
- In as little as fifteen minutes, you can complete our simple online application to find out if you qualify.
When to Consider Refinancing Student Loans?
If interest rates drop significantly, your credit score improves, or you find a lender with more favorable terms, think about refinancing your student loans. You may also consider refinancing if you want to streamline payments by combining multiple loans or if you qualify for lower interest rates based on your financial situation. Below are detailed descriptions of when you should consider student loan refinancing:
Your Credit Score Has Increased After College
Credit scores are not considered for federal student loans, and borrowers on private student loans may not have excellent credit. In short, the interest rates on student loans may be higher than what you should pay. After just a few years of work, you will have many opportunities to increase your credit score. If you have a high credit score, you will be in a better position to negotiate a cheaper interest rate when refinancing your student loans.
Interest Rates Have Adjusted
Interest rates are tied to specific economic variables during the year in which student loans are disbursed. Interest rates on student loans vary with economies.
Just because you attended school during a period of high interest rates does not exempt you from taking out student loans with higher interest rates than usual. The best time to refinance your student loans and get a better deal on your student loans is when the economy turns around and interest rates fall.
Right Financial Condition And Your Income is High
When you refinance your student loans you will have the option to choose a fixed or variable interest rate. Both of these are exactly what they sound like. A variable rate fluctuates over time in response to specific economic variables, while a fixed rate never changes unless you refinance.
When interest rates are low across the economy, variable rates are also low. If you are financially able to settle your student loans in the next few years and interest rates are going down, consider choosing a variable interest rate when refinancing. This way, you can secure a favorable deal by paying off your loans in full before interest rates rise again.
FAQs
1. Can I get any special rates or discounts with LendKey?
Yes, you can get special benefits from LendKey student loan refinance. LendKey offers several promotional benefits through third-party partners, including NYU Alumni Association members, City of Austin, Texas staff members, and exclusive lender partners, as well as a 0.25% interest rate discount when you set up automatic payments.
2. Can I refinance loans that have already been refinanced?
Yes, you can refinance your loans as many times as you want. Keep in mind that you must submit a new application for each refinance. This is because each application requires a strict credit check, which can have an impact on your credit score.
3. Can I refinance my student loan while in college?
Yes, you can refinance your student loans even if you are still enrolled in college, provided you have at least an associate’s degree from a Title IV participating institution. keep in mind that refinancing will put your loans into repayment, and you may lose any repayment options available to the school for your existing loans.
4. What happens if I refinance my federal loans with a private lender?
Your federal loans become private loans if you refinance with a private lender. By doing so, you give up your right to some of the protections and benefits associated with federal loans, such as income-based repayment plans and loan forgiveness.
5. What is the best time to refinance?
Checking your rates to see if our lending partners can offer more favorable terms than you currently have will help you choose when is the best time to refinance your student loans. Remember that after your loans are refinanced, if you are currently in school on the deferment option or grace period, you will need to begin full repayment.
Conclusion
LendKey Student loan refinance offers a compelling solution for borrowers seeking to streamline and optimize their student loan repayment. Community banks and credit unions can use this platform as a comprehensive lending solution to provide needed loans to their customers online.
With low-interest rates from financial institutions that put people before profits, borrowers can meet their financial goals and save money. In the refinance market, LendKey stands out because of its competitive interest rates, flexible terms, and user-friendly platform.
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