5 Common Questions About Student Loan RefinancingSeptember 22, 2019
Deciding to refinance your student loans is a big step in your financial journey. As with any big step, there are often questions that arise. We’re sharing some of the most common questions our Personal Loan Advisors hear from borrowers looking to refinance their student loans.
1. Will my refinanced student loan have a variable or fixed interest rate?
Either! Education Loan Finance offers both fixed and variable interest rates, giving you the freedom to choose. Fixed interest rates will not change from year to year, but variable interest rates will fluctuate based on the LIBOR index and may increase or decrease over the life of the loan. Read our blog about variable and fixed interest rates to learn more.
2. How long will the application process take?
You’ll be done before you know it! The application process is quick and easy. After providing some information about yourself and your student loans, you’ll upload documents and submit the application. If you refinance your student loans with ELFI, you’ll receive a Personal Loan Advisor who will be your point of contact throughout the process – one person who’ll be with you step-by-step.
3. Can I consolidate both federal and private student loans?
Yes! ELFI allows you to consolidate federal student loans as well as private student loans from multiple lenders. As long as they are student loans, ELFI can consolidate them. However, only student loan debt can be consolidated – no other consumer debt, such as credit card, auto, or mortgage can be included, even if it was used to pay education expenses.
4. Can I consolidate my student loans with my spouse’s student loans?
While spouses are eligible to serve as a cosigner on an application, we cannot consolidate student loan debt among multiple borrowers – even if they are hitched!
5. Will the application process affect my credit score?
We’ll run a “soft credit inquiry” during the pre-qualification phase of refinancing in order to provide you with preliminary rates that you may qualify for. A Soft credit inquiry won’t affect your credit score. However, once you choose your loan product and submit your application, we’ll need to view your full credit report – this will show up as a hard credit inquiry. These inquiries are common among student loan refinancing lenders.
Hopefully this short Q&A gave you some helpful insight about what to expect when refinancing your student loans. If you have questions about the student loan refinancing process, you can check out our full list of frequently asked questions or contact ELFI at 1-844-601-3534 to speak with a Personal Loan Advisor.
Subject to credit approval. Terms & Conditions apply.
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