INvestEd Student Loan Refinance Review: Know Better To Refinance Better

Want to manage your student loans better by refinancing? Well, INvestEd can help you there! Learn about their features, eligibility criteria, application process, repayment options. Also know how much you will pay, their perks and downsides, customer reviews on them and some alternative companies

Updated by B Harshitha on 28th February 2020

Having a bulk of student loans on your back and ultimately being responsible for its repayment is no fun. This is especially true if the amount to be repaid is large. While the affair of student loans altogether dreary, would you feel better if we were to tell you that it can be a smoother ride with one method of handling them? 

Student loan refinancing is that method. It really can be your genie to managing your loans better. Instead of three wishes, it offers you a number of benefits that do not come with student loans that are not refinanced. Some of these features are better rates, better repayment terms, lowered monthly student loan payments  and much more.

INvestEd is a student loan refinancing provider for  the residents and students of Indiana. INvestEd collaborates with another bank that refinances both federal and private student loans for people living outside of Indiana. The application process is quite and simple and efficient.

TABLE OF CONTENTS:

Features of INvestEd

INvestEd offers a range of benefits and unique features for students of Indiana. The minimum amount that a student can borrow is $1,001.

They also offer repayment terms of 5, 10 and 15 years from which borrowers can choose. Longer repayment terms come with lowered monthly payments. But you will end up paying more over time with a longer repayment term. But your regular payments will be more affordable.

Interest rates and fees

INvestEd offers borrowers fixed and variable rate loans. Your interest rate will be fixed for the duration of your repayment period with a fixed rate. Rates will change with a variable plan but they usually start off with lower rates than fixed rates. 

One way to ensure that you never miss a payment is to sign up for automatic payments. It can also help you save money by giving you a discount of 0.25% on your interest rate. This reduction can save you a lot of money over time.

Minimum Loan Amount $5,000

Maximum Loan Amount $250,000

Interest rate   3.17% to 6.89%

Interest Rate Type Fixed

Minimum Loan Term 5 years

Maximum Loan Term 20 years


Worried about your tuition? Find the best student loans just for you.


Eligibility Criteria

  • The borrower/student must be an Indiana resident or must have attended school in the state

  • They should have an eligible student loan, i.e. private or federal student loans currently in repayment

  • The borrower must hold a credit score of at least 670

  • Their annual income must be $36,000 or more

  • Their debt-to-income ratio must be less than 50%

  • They must have been continuously employed for at least one year

  • They should have no delinquencies of 60 days or more in the past two years

  • They should have no history of repossessions, foreclosures or garnishments by creditors

  • No bankruptcies should have been reported within the last five years

  • None of their student loans should have defaulted


Application Process and Documents Needed

  • The first step to starting your application process would be to ensure that both you and your cosigner qualify for refinancing your student loans with INvestEd before proceeding further.

  • Visit the INvestEd website. Hover your mouse pointer over Lending, then click on INvestEd Refi Loan.

  • Select Apply Now.

  • Fill in details about your citizenship, financial history and residential details in Indiana.

  • Give details of your name, email and contact number.

  • Then click on Continue to your Application.

  • Now you will be directed to the Campus Door. 

  • You might want to check your eligibility. Click on Am I eligible?

  • If yes, create an account on Campus Door. This will begin your application..

  • This step onwards, the application will guide your further steps.

Documents needed to refinance your student loans with INvestEd

Basic details about yourself and your cosigner will have to be provided such as:

  • Social Security number

  • Previous two pay stubs

  • Last year’s W2

  • Your current loan details


How much will you pay on refinancing your student loans with INvestEd?

Borrowers are not charged any origination or application fee by INvestEd. The only cost that borrowers incur is the interest. You may choose between fixed and variable interest rates.

Fixed rates vary between 3.17% and 6.89% and the rate stays the same throughout your repayment term. Variable rates, on the other hand, span from 3.11% to 6.75% and will vary depending on the market. These rates are not likely to go beyond 18%.

Late fees may be applied, often 5% of your monthly payment amount. But again, this does nto exceed $15. Returned payments come with a fee of $10.

Are discounts offered by INvestEd?

Yes, a 0.25% rate discount is offered by INvestEd for borrowers who sign up for autopay. But this does not really lower your monthly payments. Instead, the discount goes towards your interest repayments. This causes you to pay more towards the principal amount of your student loan than the interest. This way, you may finish repaying your loan well before the end of your repayment term.

But you may lose the discount if your loan goes into forbearance or deferment or if your automatic payment does not go through.


Looking to refinance your student loans? Find the best companies to refinance your student loans.


Repayment Options

Repayment terms of 5, 10 and 15 years are offered for borrowers to choose from. After 30 to 45 days after the disbursement of your new student loan to pay your previous lenders, you may begin with your repayment.

The following are some types of deferment available:

  • Active-duty military deferment: If you are serving on active duty or qualifying National Guard duty during war period or on another military operation or for national emergency, you may avail deferment on your repayments.

  • Financial hardship deferment: You may be approved for forbearance in one- to three-month increments twice a year if you are facing financial difficulty and are finding it difficult to keep up with your student loan repayments. You can receive forbearance for a maximum of two years. 

  • Graduate school deferment: You may qualify for up to 36 months of deferment on your student loans if you start a graduating program and are enrolled at least half time.

Any interest that gets accrued during this period gets added to your principal which ultimately makes your loan bulkier to deal with.


Pros and Cons of refinancing your student loans with INvestEd

The following are some perks that come with refinancing your student loans with INvestEd:

  • Competitive rates: INvestEd’s variable interest rates are way below what are offered by most lenders in the market. Their rates start at 3.11% and can go up to 6.75%.

  • Good range of borrowing amounts: Amounts as small as $5,000 and as big as $250,000 can be refinanced in student loans with INvestEd.

  • Cosigner release: After 48 timely consecutive repayments on your student loans, you can relieve your cosigner if you have one.

 

You might want to keep in mind the following potential drawbacks that come with choosing INvestEd:

  • Available only in Indiana: You will not be eligible to refinance your student loans with INvestEd if you did not graduate in a college from Indiana or you currently do not live in the state.

  • They themselves may not fund your loan: If you are not a resident of Indiana, your student loan will not be funded by INvestEd, but by First Merchants Bank. And it will be serviced by American Education Services (AES).

  • No FAQs: The INvestEd website does not have an FAQ section where people can find the most important information pertaining to student loans.


Some alternatives to INvestEd

The following table displays a few alternative companies that refinance your student loans other than INvestEd:

Name

Minimum Credit Score

Maximum Loan Amount

APR

Figure

680

$250,000

1.93% to 6.68%

Splash Financial

660

None

Starting at 1.99%

Credible

Good to excellent credit

None

Starting at 2.21%

Education Loan Finance

680

None

2.39% to 6.01%

Earnest

650

None

1.89% to 6.38%

SoFi

650

Balance of your qualified education loans

2.31% to 6.48%

Purefy

620

$300,000

2.27% to 7.49%

 


Customer Reviews on INvestEd

Their page on the Better Business Bureau(BBB) does not have much to offer to a viewer. They are not accredited with the agency and they also do not have many reviews or complaints from their customers. They have earned an A+ for transparency. 

Even all across the internet, they do not have a lot of reviews being written about them.

They are heavily involved with local communities. This is something positive to bear in mind.


In conclusion

Student loans are instrumental in helping a lot of Americans get a decent education as, without it, a good number of people can not afford to pay their tuition and other college expenses. The downside is that you face the consequences of having a student loan only after you graduate. 

Student loan refinancing is a wonderful strategy to deal with numerous bulky loans. If you attended college in Indiana, INvestEd can be a great option for you

If you are looking to lower your monthly payments or are looking to save money in the long run, refinancing can be of great help. INvestEd offers numerous options that you can use to your benefit.