Student Loan Refinancing Requirements: A PrimerMay 12, 2016
Updated October 22, 2019
At ELFI, we successfully help many college graduates and professionals managing their education loan payments find a better solution. Our student loan refinancing program, which also offers consolidation of multiple education loans, is available to individuals with a variety of professional and financial backgrounds, but certain requirements do exist. We believe that being aware of these requirements, along with the available refinancing options, is the first step in achieving the financial benefits of student loan refinancing and consolidation. For a better idea of what to expect when refinancing your student loans, review the following factors involved in the application process:
Good to Excellent Credit
Borrowers with good to excellent credit often have more options and are commonly offered better terms than those with lower credit scores. Borrowers with higher credit scores should take advantage of their credit status by researching lenders that offer more favorable benefits to individuals who display responsible financial habits. Alternatively, borrowers with lower credit scores should work diligently to increase their credit score by routinely making on-time payments and reducing unnecessary debt. Bottom line: Your credit rating helps determine new interest rates and terms, so it is important for you to build, protect, improve, and maintain your best possible credit score.
Qualifying Loan Balance
Zero debt is the best kind of debt, and our goal is to help graduates reduce their student loan debt with a plan that fits their financial goals. To qualify for refinancing or student loan consolidation through Education Loan Finance, borrowers must have at least $15,000 in outstanding student loan debt. The maximum amount of debt that Education Loan Finance can refinance varies based on eligibility.
Refinancing student loans require proof that borrowers are financially eligible and able to repay their student loans. Documentation is required during the application process, but to make the process move efficiently and smoothly, we recommend that you gather the following information as early as possible. Below are the requirements to refinance student loans with ELFI:
For billing statements or payoff letters to qualify, we’ll need to see the below information.
- Account number
- Current balance or payoff amounts
- Payment mailing address
- Recent Pay Stub or proof of employment from within the last 30 days
- W-2 Form from the most recent tax year
- Tax Returns only if self-employed
- Government-issued Identification
- Account Information because all borrowers are required to make payments electronically. If making payments with auto debit, you must submit billing account for setup
- Current Billing Statement or Payoff Letter for each eligible loan
- To qualify for refinancing, borrowers must have earned a bachelor’s degree or higher from an approved post-secondary institution.
Loan Program Benefits and Options
Benefits associated with federal and privately-offered student loans are very different. Borrowers should, therefore, know exactly what they have and could be giving up — especially when it comes to federal student loans. Refinancing a federal student loan means the loan will be consolidated into a private company’s loan package, thereby potentially removing the loan from its federal ties and its protective benefits (e.g. income-based repayment or loan forgiveness). However, many private education loan providers also offer similar benefits to help their borrowers remain in good standing, so be sure to ask an advisor about such programs.
Prepare Yourself Today
While the stipulations and requirements for refinancing will vary between lending institutions, this quick checklist will help prepare you for a few of the most common requirements, as well as those that are specific to Education Loan Finance, associated with student loan refinancing. With an understanding of our program guidelines, as well as by having required financial documents ready, borrowers will find our already simple and streamlined application process that much easier. However, if you should need help, Education Loan Finance representatives are only a short phone call away.