If you have taken a student loan and now thinking about loan consolidation or refinancing, you can become overwhelmed by too many available lenders. You might not decide the right option and will put yourself at a loss by not choosing the best bank for student loan consolidation or refinancing.
Whenever you apply for consolidation or refinancing every lender whether it is a bank or any other company will have certain prerequisites to be fulfilled. They will check you:
- Source of income which is giving you handsome monthly income.
- Your credit score.
- College or university degree type for which you have taken the loan.
Don’t worry if you lack behind on one or more criteria. You can still apply and get approved for the help of co-signer.
We have reviewed top five banks to be considered while thinking about loan consolidation or refinancing. These provide consolidation for both federal and private loans if you meet their criteria and requirements.
It is on the top of the list by providing consolidation and refinancing of both federal and private student loans. It offers flexible repayment terms depending on the borrower’s feasibility 5,7,10, 15, 20 years. The best thing it offers is the unemployment protection in which if you have lost your job your payments are paused until you find a new job. And it is available for both undergraduates and graduate school loans.
Second on the list providing the loan refinancing and consolidation for graduate or undergraduates and whether private or federal loans. It also provides unemployment protection. But at the time of application, you must be employed or starting a job within six months of getting approved. Earnest offers variable flexibility in term of payments dates, or you can even skip a payment and make it later. It allows you to refinance free of cost. Another requirement for getting approved for consolidation or refinancing is you must have completed undergraduate or graduate degree program or expected to get complete within six months.
3. Common Bond
It also allows refinancing or consolidation of both federal and private student loans with flexible repayment term to be set up by the lenders. Like other best lender banks, it also provides unemployment protection to the lenders so they can get themselves hired at a new place easily without getting stressed about the loan repayments.
Same as another bank it offers refinancing and consolidation for both private and federal loans with flexible repayment term from 5 to 20 years. The difference is that the minimum balance to refinance is $7500 must be fulfilled. And the applicant must have an annual income of $24000. It also provides unemployment protection to its borrowers.
5. Citizens Bank
It is the fifth best bank to go for refinancing student loans. The minimum amount to refinance must be $10000. Flexible repayment terms to be set up for 5 to 20 years. Providing consolidation and refinancing for both federal and private student loans. According to reports the private student loan refinancers saved @ 1536 per year on an average with citizens bank