MBA Student Loan Refinancing
Know who are the top lenders of MBA student loan refinancing, why should we refinance your student loans and their benefits.
Updated by Priya shah on 15th October 2020
MBA can be a very profitable qualification, as it enhances both skills and knowledge to work in the finance sector. Working in the private sector can help you have a better regular income and henceforth you can easily qualify for MBA student loan refinancing. MBA not only provides a degree but a better career opportunity too. 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 productive and fulfilling career.
According to private lenders, ideally, 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 student loans could save you thousands of dollars.
Table of content
- Top 6 MBA student loan refinancing lenders
- How to refinance your MBA loan
- Benefits of refinancing your MBA loans
Top 10 Lenders to Refinance MBA student loans
Here is a quick summary of the best MBA student loan refinance options of January 2020:
|Lenders||Fixed APR||Variable APR||Min. credit score|
|Earnest||3.20% to 6.99%||1.99% to 6.89%||650|
|Penfed||3.48% to 6.03%||2.32% to 7.06%||670|
|Prodigy||N/A||6.56% to 8.65%||N/A|
|Sofi||3.20% to 6.48%||2.31% to 6.48%||Does not
|Commonbond||3.21% to 6.45%||1.81% to 6.29%||660|
|Splash financial||3.48% to 7.02%||2.25% to 7.41%||670|
|Purefy||2.99 to 5.15%||2.25 to 4.49%||670|
|Mefa||3.65 to 5.50%||3.65 to 5.50%||670|
|College Ave||3.49 - 12.99%||1.24 - 11.98%||600<|
|Brazos||2.49 - 4.60%||1.92 - 4.84%||700|
The earlier you refinance, the more you could save.
How to qualify to refinance MBA student loans
Besides being a U.S. citizen or permanent resident of the U.S you must meet the eligibility criteria. 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/credit history: Better the credit score, the more likely you are to qualify for a loan. Also, you can refinance your student loans to lower interest rates. But if you don’t have a good credit score and hoping to refinance you must work on building your credit score. If you really want to make your credit score strong, you must make on-time consistent payments and pay down towards other debts like credit cards.
Income: It is difficult to get a loan if you can't prove to the lender that you can pay it back. If you don’t have a stable income then you cannot move ahead for refinancing. It is important to show lenders that you are serious about borrowing money that you’ll pay back on time.
Cosigner: To prove creditworthiness your credit scores have to be good. But if you are a student, it's unlikely to have a good credit score at a small age. Therefore your parents, trusted family member, friends, grandparents, relatives can step up to be a cosigner for you. Their credit score must be good to help you refinance your student loans.
Looking to refinance your student loans? Choose from our list of best student loan refinance lenders
The application process to refinance your MBA student loan
Once you have concluded that refinancing your MBA student loan is the smart move, the process is easy that starts with certain steps as mentioned below:
1 - Evaluate lender options
Every student loan provider has different terms and conditions, shopping around for an MBA student loan refinance opportunity if it's best for getting the best deal. Some of the variables you can include are:
Fixed-rate vs. variable rates: Choose lower interest rates as it helps you save money in the long run. Most private student loan refinancing lenders provide competitive interest rates, so make a thorough study before you decide to settle for refinancing.
Features of the loan: If you already have a lender for your student loan, consider what features you’d like to have. If they offer deferment which most of the borrower could benefit from. A deferment option allows the borrower to temporarily stop making payments or reduce the payment for a certain period of time. Make choices that suit best for you.
Loan term: The loan term period is 5, 10, or 15 years and sometimes even 20 years, and your overall term will be determined on how much you pay in interest over time.
Ease of process: A company makes it 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.
2 - Apply
Once your research is done, 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 reduce 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.
While submitting your information, be sure to include cosigner information and be aware of all the terms and conditions and comply with it.
Worried about your college tuition? Find the best student loan for you.
Benefits of refinancing your MBA student 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
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. Having a good credit score always helps you refinance for a lower interest rate, refinancing for a higher interest rate is usually not beneficial, therefore consider having a cosigner who can help to qualify for lower interest rates.
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 starting a new career and working towards earning and saving more. When you refinance your student loans, reach out to lenders who have better loan repayment terms. You can make lesser monthly payments by choosing a longer repayment term and keep aside your monthly income for other expenditures.
Refinancing can help you keep track of your student loans
For the MBA graduate students who have undergraduate student loans or a loan with multiple lenders, keeping track of those can be difficult and a 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. Keeping track of your student loans is very important as you do not want your loans to go to the default. Remembering multiple payments in a month can be a tedious task, therefore refinancing and having a single loan to manage is much easier.
You can always go for refinancing if you get a better rate. 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 potential and want to repay loans faster you could refinance with a lower variable rate. However, we do not recommend the borrowers to refinance their federal student loans at the cost of losing their student loans benefits.