Brazos Student Loan Refinancing - Explained

Refinancing is a great way to manage your student loan debt. Learn more about the features, the repayment options, refinancing options, referral bonus and the procedure to refinance with Brazos.

Updated by Roopsi Gupta on 15th June 2020

In 1975, Murray Watson Jr. founded Brazos Higher Education Service Corporation, Inc.- a nonprofit corporation which is managed by a group of nonprofit companies. For the past 40 years, it has been providing services on student loans. There are millions of students who are taking loans with has led to trillions of dollars in debt.

Brazos offers refinancing options to the residents of Texas which will provide them with a new and lower interest rate. Refinancing student loans has a number of benefits associated with it like having a single monthly payment to be made, pay your debts off sooner, a reduction in the total payments of interest and many more. 

Brazos also provides assistance in a way that it will help pay off the principal and interest on your current loan. This will ease you out and you can manage other finances associated with you and how they should be in the future.

To get a better understanding of Brazos Loan Refinancing, let us know more about it in detail.

Table of contents

Features of Brazos Student Loan Refinancing

In order to go ahead with refinancing your student loans with Brazos, you can expect to avail the following features - 

  • Easy online application- To apply for refinancing with Brazos, the process is very prompt and quick. An online application is to be filled for pre-approval to check if you qualify the basic requirements of refinancing.

  • Money Saviour- By opting for refinancing with Brazos, you can qualify for a lower rate of interest so that will be easy for you to pay the loan. This, in turn, will help you in saving money for the complete duration of the loan.

  • No Fees- The refinancing options are free from all the fees like the origination fee, application fee or prepayment penalties.

  • One Loan One Payment-  While refinancing, Brazos combines all of your loans into a single loan. In this way, you will have to make one payment per month and continue with just one loan with an added advantage of lower interest rates.

  • Term Options- Various terms for payments are available while refinancing your loan- 5, 7, 10, 15 and 20 years. You can go for whichever term that suits your financial needs.

  • Cosigners and Parents- if you have a cosigner with a strong credit score, you may get a lower interest in the refinancing of your loan. And also refinancing of Parent PLUS loan can be done through your parents.


Procedure to Apply for Refinancing With Brazos

To apply for refinancing your student loans with Brazos, there is a process to be followed which will give you an easy to know which are the necessary things required to qualify for it. 

Here is the step by step guide through it-

1) Check for available loan options- it is important to check the feasibility of various options available so that you can go for the option which will be best suitable to you. You can check it by using the calculator to know what fits best to your pre-defined financial goals and help you in sustaining till the term of your loan.

2) Eligibility requirements- as the refinancing options are for the residents of Texas to either the pursuing graduates or to the working professionals. To qualify for it there are certain requirements that need to be met out and knowing about them prior applying will help you better is qualifying it. 

Following are the requirements for refinancing-

Borrowers requirements-

  • The borrower must be a graduate or an undergraduate bachelor from amongst 2000 plus eligible schools

  • The person must the loans which are to be refinanced

  • The person must be a citizen of the US or National or a non-citizen with a government-issued ID of permanent status or if applying for an eligible cosigner, must have a work or student visa.

  • The borrower must be a resident of the State of Texas

  • The borrower must be at least 18 years old

  • The borrower must have a strong credit history 

  • FICO score of at least 720 or 690, in the case of a qualified cosigner

  • The borrower should have a minimum income of $60,000 or $30,000 (for qualified cosigner)

  • The borrower must be applying for one outstanding, fully disbursed education loan

  • The borrower must be employed or self-employed at the time of making an application or is going to start with any in the next 60 days

Cosigner’s requirements-

  • The person must be a citizen of the US or National or a non-citizen with government-issued non-expired document

  • The cosigner must be at least 18 years old

  • Must be having a FICO score of 720 

  • The minimum income should be $60,000

  • Must be a resident of the State of Texas

  • Must have a strong credit history 

3) Collect the details and apply- before applying for the loan, the pre-approval takes minutes to perform and then you can pursue further with your refinancing application. But you need to keep an eye for all the details that are required to apply for it and are necessary as well. These are a few necessary details

Loan limits 

The minimum amount of a loan to be refinanced should be $10,000 and in case of the maximum amount of limit, for borrowers with a bachelor's degree it is $150,000 and for borrowers with graduate or law or medicine or any other professional degree the maximum limit is $250,000.

Required documents-

  • Proof of Texas residency

  • Proof of income- either form 1099 or a tax return 

  • Social security number

  • Permanent address 

  • Payoff verification from your current lenders and the mailing address where the payment slips are getting delivered so that Brazos can verify and check how much they need to pay from the present loan

After catering it all, you can move ahead with the loan application and get it approved with ease. 

4) Rates and interests - 

1. Terms of loan -      5, 7, 10, 15, 20 years
2. Amount of loan -   10,000 - 250,000 dollars
3. Grace period -       No grace peroid
4. Cosigner release - No cosigner release offered
5. Interest rates -     Fixed - 3.50% +
                               Variable - 2.38% +

5) Advantages of Brazos Student Loan Refinancing- 

1. Low rate of interest, in some cases Brazos provides a lesser rate of interest compared to other lenders.
2. On opting for the autopay option, they provide a 0.25% discount and provide a bonus.
3. Most interest rate and loan term details are mentioned clearly on their websites.
4. They provide Deference and forbearance options in cases like financial hardship.

 


Worried about your college tuition? Learn more about student loans


Drawbacks of Brazos Student Loan Refinancing

There are certain areas where Brazos is lacking in becoming perfect. Following are the drawbacks of Brazos Refinancing Loan option-

  • No cosigner release - Brazos do not provide any cosigner release, but as it deals with those clients which are already established (having good credit history & score) so the cosigner takes the charge to pay only when you are not able to pay the loan.

  • Option for forbearance - the offer for forbearance is limited to 12 months. If you are facing any difficulty in paying after that, it will not be helpful. So you need to be clear with your incomes and the cosigner’s credibility

It does not offer any income-driven repayment plans like the other lenders are providing.


Refinancing Options with Brazos

With Brazos, there are various options available for the term period of loan refinancing. Both types of rates are offered by them being fixed & variable for the term of 5, 7, 10, 15 and 20 years. You can opt for any loan term of your choice and which will suit your finances the best. The impact of going for different options are explained below.

The variable rates are determined by the changes in the market index and a set number of percentage points. Calculations are done every month to set the variable rates for interest rates, it is seen that the rates are generally low when you opt for variable rates but there are chances that they will increase in the future, rest depends on the market index rates.

On the last working day of every month, the Journal of Wall Street reflects the LIBOR rate which in turn helps in calculating the variable rate plus the margin with it and in any case the variable-rate cannot go more than 9.90% and round up to two places of decimals.

If you are going for fixed-rate loan refinancing options, then the rates are fixed throughout the life of the loan. Comparatively the rates are higher in the beginning than the variable rates. 

Chances are the lender may feel troubled if the rates get higher but it will be paid a fixed rate. If you take advantage of auto-pay discounts, in that case, the rates can change for that period of time. The auto-pay can benefit you up to .25% reduction in your interest rate but in case of deferment or forbearance it is not applicable, you can apply again after the duration of forbearance or deferment will get over. 

Refinancing your student loans is a great way to get away from the current loan terms and getting new loan terms that are better suited for your financial situation.


Repayment Options with Brazos

After the disbursement of the previous loan, the repayment will start after 30 to 45 days. If you think that loan consolidation is something you want to go for, only the federal government provides you with options like this. Apart from it, for graduate repayment programs are also offered by them only. 

If in any way, you are serving the public or a government employee then you can be eligible for loan forgiveness options that are not present with Brazos Loan. 

All borrowers have to go through their repayment journey. Some take advantage of the options available to them while others suffer and lose out on the benefits available to them. Student loan repayment if planned right can boost your credit score. It is important to have an in-depth understanding of the options out there.

Thus, in order to go either for consolidation or refinancing, it is on you to decide which option suits you the best and will also be beneficial in the future for you.


How Federal Loan Consolidation is different from Brazos Loan Refinancing

There are various private lenders who offer the option for refinancing your student loan but in case of consolidation of your student loans, there is only the federal government that offers it under direct loan consolidation program. 

Here is a table giving more points while comparing both the consolidation and refinancing options- 

Basis of Comparison
Federal Direct Loan Consolidation
Brazos Refinance Loan
Lender United States Department of Education
Brazos Education Lending Corporation
Loans Eligible? Federal Loans Only
Federal and Private Loans
Option to lower the interest rate?
No Yes
Monetary savings
No
Yes, it can be saved either by shortening your term or lowering the interest rate
Credit Check No Yes
Are income-sensitive or graduated repayment plans available?
Yes No

You will be requiring a complete credit check if you are going for refinancing with private lenders but with consolidation option, you can get it done without any credit check. Generally, private lenders can refinance both federal and private loans together. But the federal government can only consolidate direct loans.


Referral Bonus with Brazos

If you want to get a referral bonus, you just need to follow these below-mentioned steps and if the potential person will avail the refinancing of loan option then you can get $200 as a referral bonus.

  1. Put in your email address and a unique referral link will be sent to you on the registered mail ID

  2. Share the unique referral link with the concerned person

  3. After every successful completion of application of the concerned person’s loan refinancing with your given link, you will receive a bonus of $200 

Learn more about the working of the Brazos referral mechanism.


How Brazos student Loans can improve? 

1. Can make their services available in other regions and just not texus.
2. By providing the cosigner release option.
3. They require the borrower to have job even if applying with a cosigner. This condition can be eliminated since Brazos either dont provide cosigner release.
4. By providing better phone support to its customer.


Contact Information

Given below are the details to get in contact with Brazos - 

Address: 

Brazos Education Lending

2600 Washington Avenue

Waco, Texas 76710

Email:

info@brazos.us.com

Brazos Higher Education Services Corporation offers lower rates than the other lenders but it is dependent on the potential of the borrowers how much credibility they have. The strong income and credit score there are more chances of getting it approved.

To opt for refinancing with Brazos, you need to have a check of all your requirements and the services that it is offering you so that you can make a fair decision all over.

If you want to take a look at other top lenders, then read more on the best companies to refinance your student loans.