MBA Student Loan Refinancing

MBA student loan can be very beneficial qualification to take as it enhances both skills knowledge in the finance sector. MBA not only provides a degree but a better career opportunity also. learn more on the top lenders of MBA student loan refinancing, why should we refinance our loan and much more

Updated by Priya shah on 29th January 2020

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MBA can be a very beneficial qualification to take as it enhances both skills knowledge in the finance sector. MBA not only provides a degree but a better career opportunity also. Deciding to study an MBA is a big step and costly at the same time. 

As far as graduate degrees go, obtaining an MBA will almost certainly open the door to a lucrative and fulfilling career. 

Business school graduates are excellent candidates to refinance MBA loans. Maybe because an MBA degree comes with MBA student debt and a big salary, choosing to refinance your MBA loans could save you thousands of dollars.

Table of content

Top 6 lenders of MBA student loan refinancing

Summary of best MBA student loan refinance options of January 2020:

Lenders

Best for

Fixed APR

Variable APR

Min. credit score

Earnest student loan refinance

Refinancing before graduation

3.20% to 6.99%

1.99% to 6.89%

650

Penfed student loan refinance

Fast payoff

3.48% to 6.03%

2.32% to 7.06%

670

Prodigy student loan refinance

International MBA students

N/A

6.56% to 8.65%

N/A

Sofi student loan refinance

Extra features

3.20% to 6.48%

2.31% to 6.48%

Does not

 disclose

Commonbond student loan refinance

Extra features

3.21% to 6.45%

1.81% to 6.29%

660

Splash financial student loan refinance

Extra features

3.48% to 7.02%

2.25% to 7.41%

670

The earlier you refinance, the more you could save.


Looking to refinance your student loans? Choose from our list of best companies to refinance your student loans


Why you should refinance MBA loans?

Loans are always a burden no matter, how expensive or cheap they are. Expensive federal student loans and private student loans can hold you back from so many other ventures in life, like buying a home, savings, or start a new family. Refinancing the MBA student loan can be a smart move, let’s know-how?

  • Lower your interest rate: A lower rate isn’t guaranteed, so try exploring all your options with many different lenders first. Getting a lower interest rate means automatically you will pay less in total over the lifetime of your loans. The less amount of money the less extra money you owe back to the lender.

  • Lower your monthly payments: lowering the monthly payments gives you the chance to be able to afford your monthly payments so you can make more plans. The more you have on-time payments the more you build your credit strong.

  • You can combine multiple loans into one: If you have many loans from different lenders, it is difficult to keep a usual track of the payments. Refinancing combines all the different loans into one loan. A combination of various loans can make your payments convenient.


How to qualify for the refinancing of MBA student loans?

Besides being a U.S. citizen or permanent resident of the U.S you must meet the eligibility criteria. In order to get the best out of the MBA refinancing, you have to make sure that you are an ideal refinancing customer. Every loan servicer wants the best candidate or eligible borrower who can pay back the loan by paying on-time payments. 

Some of the eligibility criteria are:

  • Credit score and credit history: The more you have a good credit score, the more likely you are to qualify for a loan. Along with that, the lower your interest rate will be. But if you don’t have a good credit score and hoping to refinance you must work on building it up first. If you really want to make your credit score strong must make on-time consistent payments and pay down other debts like credit cards.

  • Income: It is difficult to get a loan if you cant prove lender that you can pay it back. If you don’t have a stable income on a regular basis then also you cannot move ahead for financing. It is important to show lenders that you are serious about borrowing money that you’ll pay back on time every month.

  • Cosigner: incase if you don’t have a great cosigner or something to prove your creditworthiness, you’ll likely need to find someone who can.


Worried about your college tuition? Find the best student loan for you.


How to refinance your MBA loan?

Once you’ve determined that refinancing your MBA student loan is the smart move, the process is easy that starts with certain steps:

Step-1: evaluate  lender options

Every student loan provider has different terms and conditions, shopping around for an MBA student loan refinance opportunity if its best for the getting the best deal. Some of the variables you can include are:

  • Fixed-rate vs. variable rates: The one which is more comfortable, affordable and can be associated with your loan.

  • Features of the loan: if you already have the lender for your student loan, consider what features you’d like to carry over from it. They also have a deferment option which most of the borrower could benefit from a deferment option and allows the borrower to temporarily stop making payments or reduce the payment for a certain period of time. But still, you may lose some of the features if you refinance your MBA loans.

  • Loan term: the loan term period is 5, 10 or 15 years and your overall term will be determined on how much you pay in interest over time.

  • Ease of process: A company makes easy to apply for an MBA student loan refinance and readily responds to a customer service request, that will be easy to work with throughout the life of your loan.

Step 2: Apply

Once your research is done, on the numbers that are gathered you are almost ready to apply.

Applying is one of the easiest parts of the process since you’ve already done all the legwork. You will also be asked to provide documents like government-issued ID, as well as your tax returns, recent bank statements and other paperwork validating your overall financial standing.

Still, there are a lot of options for graduates with MBA student loan debt to lessen your financial burden. Research on the available options and the right lender that can help you better navigate the specific challenges MBA graduates often face.


Benefits of refinancing your MBA loans

Refinancing carries both short-term and long-term benefits for any type of student loan debt repayments, but the more money you have in loans the greater you will save. 

Refinancing to a lower interest rate can save you significant money over the long run

Lowering the interest rate that you pay in your total debt means paying less in overall interest over the life period of your loan. You will be hard-pressed to find a lower interest rate anywhere else.

Refinancing can bring down your monthly payments

Depending on the term you wish to refinance, the amount of payment automatically reduces each month towards your student loans, which is especially helpful as you are getting started in your career and working towards to earn more and save more.

Refinancing can help you keep track of your student loans

For the MBA graduate students who have undergraduate student loans or like a loan for multiple places, keeping track of those can be difficult and burden at some point. Refinancing multiple loans into one can make easy also lower overall costs but to also streamline the numbers of payments you have to make each month.


Should you refinance MBA student loans?

You can always go for refinancing if you get a better rate. If you paid for your MBA with private student loans, there’s little downside to refinance them. Refinancing lenders typically don’t charge extra fees, so you begin saving money immediately. Refinancing student loans typically reduces the burden of multiple loans that you have to keep track of. Most of the refinance lenders let you choose a fixed or variable interest rate. After you are confident in your earning power and want to repay loans faster you could refinance into a lower variable rate.