PNC Student Loan Refinancing Service: A Comprehensive Review

Learn more about PNC's student loan refinancing service here. Includes details on requirements and eligibility criteria, pros and cons, money to be spent, money saved, repayment options, application process, customer service and feedback details, some alternatives to PNC and their contact details

Updated by B Harshitha on 11th June 2020

Refinancing is one way in which the process of repayment of your loans can be simplified. Refinancing does this for you in one or many ways. A burdensome student loan (or multiple such loans) with ultimatums and demands that are hard to keep up with can be handled fairly easily post refinancing. These hard to meet constraints could be in terms of time or money. Refinancing alleviates these concerns and take some pressure off your shoulders.

Before looking into refinancing or any other system of repayment, it is very important to have an in depth understanding of student loans. Keeping up with the intricate details and updates pertaining to student loans could help you understand in refinancing your loan would be the best idea for you.

Refinancing is often the process of replacing an existing loan (or loans), both private and federal with a new one. This new loan could bring some benefits by helping you find a better rates and terms, by reducing monthly payments and/or combining several loans into one efficient payment (consolidation). Refinancing is one of the most preferred student loan repayment methods these days and this is mainly because of how efficiently your loans get handled. Do your homework on how refinancing works in order to figure out if this would be a good choice for you.

Let us see how PNC Student Loan Refinancing works to alleviate your worries regarding your student loan.

TABLE OF CONTENTS

 

What is PNC?

You may be wondering what PNC is or how working with this organization to refinance your loans is supposed to be beneficial to you. 

PNC is one of the biggest and leading banks in the U.S., and it has a range of services to offer to customers such as private student loans to undergraduates and graduate students and refinancing of student loans to customers who are not in school anymore. PNC offers many benefits to borrowers such as adjustable repayment terms, good interest rates and so on. Learn more about PNC and their student loan specifics to see if their offerings are what you are looking for.

PNC is a banking giant that has been in operation for about 160 years across 22 states in America. Their assets amount up to roughly $293 billion.

The Student Loan Refinance market primarily consists of two different types of lenders. The first category is student loan specialists like SoFi or CommonBond. Most of them are also startups.  The second category is companies like LendKey who collaborate with local banks and credit unions.

Big banks are scarce in the arena of student loan refinance business. PNC is one prominent bank that is dominant in the refinance marketplace now and this certainly has a lot to do with the various benefits they have to offer. They refinance through mortgage changes and refinanced personal loans. One famous service that PNC is uniquely for is their bar study loans.

PNC might be a good pick for clients who find it cumbersome to work with a lot of institutions. But it is important to note that PNC’s initial refinance rate is not the least that is offered in the market. So if finding the least rate is a priority for you, then this might not be apt for you.

PNC offers a 0.50% automatic payment discount which is more than what is offered by most lenders, 0.25%. Their loan limits also go up to $225,000, which is pretty high.

PNC, is one of many private student loan lenders, albeit a leading one. Explore to find one that seems most suitable to your preferences. 


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


PNC Student Loan Refinancing Details

  • The minimum and maximum loan amounts that PNC works with for student loan refinancing are $10,000 and $15,000, respectively.

  • Fixed interest rates vary between 3.69% and 6.69%, depending on the loan term.

  • Variable interest rates vary between 4.16% and 7.07%, depending on the loan term.

  • Loan term lengths can be either 10 or 15 years.

  • The autopay rate reduction, as mentioned before, is 0.50%.

  • Release of the cosigner is available.

  • A parent loan can not be transferred to the child.

  • There is no soft credit check available to view rates that you may get.

  • There will be no application or origination fee charged.

  • There is no prepayment penalty.

  • A late fee of the lesser of either $5 or 5% of previously due amount will be charged after the payment itself is 15 days past due.


Requirements and Eligibility Criteria for PNC’s Student Loan Refinancing Service

Financial

  • The minimum credit score required is 660.

  • There is no specification on the minimum income required.

  • The average credit score of borrowers who are approved is 761.

  • The average income of borrowers who are approved is $62,002.

  • The maximum ratio of debt-to-income found is 37%.

  • You may qualify if you have filed for bankruptcy, but after 10 years.

Others

  • It is mandatory that you are either a U.S. citizen or a permanent resident of the U.S.A.

  • This service is available to borrowers in all 50 U.S. states.

  • There is no requirement that you must have graduated.

  • You must have attended a school that is authorized to receive federal aid.

  • The percentage of borrowers with a cosigner is 12%.

  • It is mandatory that you have repaid your loans for a period of at least 2 years, i.e. 24 months.

  • It is mandatory that you have lived in the U.S. for a period of at least 2 years, i.e. 24 months.

  • It is a must that you have been employed in a steady way or have been making earning for the past 2 years, i.e. 24 months.

  • Deferments are optional. It is required that you are enrolled in an undergraduate or graduate program full-time at a Title IV school. Deferments can be availed for up to a period of 36 months, i.e. 3 years. Interest will continually accumulate on the loan while deferment.


Perks of Refinancing your Student Loan with PNC

The following are some perks that you could enjoy if you refinanced your student loan with PNC:

  • Rates are competitive: PNC Bank's rates seem to be the most competitive in the market for 15-year loans when compared to what is offered by most top lenders. Even though PNC’s rates are a bit higher than those offered by federal lenders, it is not by much and the guarantee and reputation offered by PNC more than makes up for the slight difference in interest rate.

  • A degree is not a necessity: PNC makes it possible to refinance debts for incomplete degrees. A degree is not mandatory for refinancing a student loan. This is a big perk since many lenders demand the presence of a complete degree. PNC would be a good pick if you have a good job but no degree.

  • Release of a cosigner: Your cosigner can be relieved if you have made a minimum of 48 consecutive timely repayments and give proof of income and also pass a check on your credit.

  • High discount on autopay:While most lenders offer a standard 0.25% reduction on automated loan payments, PNC offers twice this amount, i.e. 0.50%, which definitely gives it an edge over the others.

  • Deferment while in school: Your education need not be halted because there have been issues with paying off your previous student debts.

  • PNC offers a range of options

  • PNC is a very large lender. The assurance and guarantee offered by them are undeniable.

  • Due to their prioritization of customer service, they have developed a very good reputation.

Please consider the options below before you opt for PNC bank student loans.

 

1. Undergraduate enrolled for half time can get up to 40,000 dollars. And PNC directly funds to your school.
2. Graduate gets up to 65,000 dollars to pay for their education.
3. If you work for Heath related filed you can borrow up to 65000 dollars.
4. For relocation expenses, you can borrow up to 65,000 dollars if you are working in the medical field.
5. You can take 15,000 dollars with a PNC bar study loan.
6. For refinancing and consolidation, you can opt to reduce interest rates and lower monthly repayment for the amount upto 75000 dollars.

 

 


Some cons of refinancing your student loan with PNC

Here are some reasons why PNC might not be the best fit for you:

  • Comparatively low maximum amount: The maximum amount that can be borrowed is $75,000 which is not enough for covering expensive degrees.

  • Few options on terms: One can choose either 10 years or 15 years as loan terms with PNC Bank which are fewer options than competitors offer.

  • Single standard repayment: Full repayments may be tough to deal with if you are in a relatively new phase in your career.

  • Qualifying for refinancing is still a necessity: Meeting all of the bank’s eligibility needs in order to get approved still happens to be a tough task, despite the fact that having a cosigner expedites this for you.

  • Strict cosigner release program: PNC’s demands with respect to a cosigner’s release are quite strict. At least 48 timely payments need to be made for one to be eligible for a cosigner release. In addition to this, submission of proof of income is mandatory, as is a credit check. 4 years is a long time to be a repayment requisite.

  • Concerns regarding federal government loan refinancing and consolidation: In addition to private loans, PNC also refinances and consolidates federal loans. This could prove detrimental to borrowers because the benefits and consumer protection policies that accompany federal loans, like income-based repayment plans and forgiveness programs could be lost with refinancing and consolidation.

  • Lack of a soft credit check: Checking to see if you qualify or what rates you can avil without having your credit score affected is not possible. This is a disadvantage since many other lenders like LendKey offer this amenity to consumers.

  • Location oriented: PNC has a more stable and prominent presence in the Northeast than in other places.


How much will you spend to refinance your student loan with PNC?

PNC does not charge any application fee. There are two types of interest that can be applied whose rates you have to carefully check.

Fixed rates

The fixed rates offered by PNC range from anywhere between 3.69% and 6.69% depending on the loan term. It is easier to estimate the amount that needs to be paid on a monthly basis since this rate stays the same throughout the lifespan of your loan.

If you pick the 10-year duration, you may get a rate anywhere within the range of 3.69% to 6.44%. The 15-year term offers rates anywhere between 3.94% and 6.69%.

Variable rates

PNC’s variable interest rates range from 4.16% and 7.07%. Similar to fixed rates, PNC Bank varies these rates based on the duration you take to repay your loan.10-year term’s rates vary between 3.76% and 6.51%, while the 15-year terms come with rates ranging from 3.92% to 6.67%.

While it is not possible to always estimate your monthly payment amounts due to the ever-changing nature of your interest rate, it is possible that with variable rates, your payments could go lower. It may help you save money.

In other words, PNC gives you a fixed rate that does not change and another that varies based on the lending market. It will not get too high, since PNC caps its interest at 18%.

Any discounts?

PNC does offer some discounts. As mentioned, you can avail a 0.5% discount on registering for automatic payments. They also offer service members lowered interest rates and good forbearance and deferment options.


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How much will you save on refinancing your student loan with PNC?

Use a calculator to estimate how much you will have to pay, and ultimately how much you will end up saving post refinancing your student loan with PNC.

  • The first step would be to enter your details of remaining loan balance, rate of interest and the remainder of your term in years.

  • Check and estimate the rates of interest that you may avail on your refinanced loan. With a better credit score, you stand a better chance of getting a lower interest rate.

  • Now run the numbers with all the information that you input to get details about your new loan.


Repayment Options Available for refinancing your student loan with PNC

The following are some repayment options that PNC offers to their clients and their terms:

  • PNC Bank, as mentioned, offers a fixed repayment plan where the amount to be paid monthly is the same and a variable repayment plan where the monthly payments vary based on the lending market.

  • Academic deferment: PNC Bank offers up to 36 months of in-school deferment if you choose to return to school while being enrolled full-time at an eligible program. It is important to note that the interest continues to get accrued but the repayment is halted.

  • Military deferment: You are permitted to postpone repayments if you are participating in active military duty.

  • Forbearance: On the occasion that you lose a job or are facing some hardship, you are permitted to postpone payments for up to a year, i.e. 12 months in increments of two-months. To qualify, you must make repayments for 12 months, i.e. a year.

  • You can avail cosigner release after timely repayments for 48 consecutive months.

  • Discharge in cases of death and disability is available.

  • You are allowed to pay more than the minimum amount via autopay.

  • You can not make bi-weekly payments through autopay.

    Refinancing is not the only way to repay your student loans. As with any aspect relating to student loans, it is always advisable to do your bit of research to find the repayment method that best fits your capabilities and preferences.


Application Process for PNC’s Student Loan Refinancing Service

Application can be made either at a branch of PNC bank or on the lender’s site. You will be asked details about your finances such as debt, credit history, etc. as well as some personal details.

It is important to first make sure that you are eligible before starting with the application. Keer ready the relevant documents and then start the application process.

The following details will be asked:

  • Social Security Number

  • Details of Contact

  • Address of school

  • Details pertaining to your lenders' such as their names, account numbers, remaining balances, monthly repayment details and interest rate details

  • Pre-taxed income details

Follow the following steps to make an application:

  • Visit the PNC Bank website and select “Education Loans”.

  • Select “Education Refinancing” and select “Start Application”.

  • Begin by creating an account. Now you may start your application.

  • Make the cosigner’s account and fill in their relevant details, if you are working with a cosigner.

  • Check to see if your credit score qualifies the criterion expected.

  • After about 2 weeks, the bank may reach out to you with offers of interest rates and monthly repayments.

  • If you are satisfied with any offer, ensure to submit all the required documents.

  • Carefully go through and sign the promissory note.

  • Now the bank will contact your lenders and pay off your debts. Now you will start repaying through its servicer, American Education Services.


Customer Service Details for PNC’s Student Loan Refinancing Service

Some important details on PNC’s customer service for refinancing your student loans:

  • Their loan servicer is American Education Services.

  • They have an in-house customer service team.

  • Borrowers do not get a dedicated banker, advisor or representative.


Customer Feedback on for PNC’s Student Loan Refinancing Service

  • PNC’s refinancing service is relatively new. There is a scarcity of online reviews from customers as of now. A good number of complaints have been filed against the bank and quite a few reviews have been negative.

  • A lot of dissatisfaction has been directed towards the customer service offered by the bank. The team’s responses to sudden situations like a death have been frowned upon.


Some other alternatives to PNC for refinancing your student loan

A few other student loan refinancing options to consider have been tabulated below:

NAME

MINIMUM CREDIT SCORE

MAXIMUM LOAN AMOUNT

INTEREST RATES

Purefy(Variable Rate)

620

$300,000

2.27% to 7.49%

SoFi(Autopay)

650

Complete balance of your qualified education loans

1.81% to 7.36%

Earnest(Autopay)

650

None

1.99% to 6.89%

Education Loan Finance

680

None

2.39% to 6.01%

Credible

Good to very good credit

None

Starting at 2.21%

Splash Financial

660

None

Starting at 1.99%

Figure

680

$250,000

3.25% to 6.75%


The bottom line for refinancing your student loan with PNC

PNC is one of the few major banks that offers refinancing and consolidation services for your student loan. While it does not size up satisfactorily when compared to startups, credit unions and local banks, it does offer a lot of assurance and guarantee in terms of its reputation and credibility.

Contact Details

You can contact PNC regarding student loans via any of the following channels:

Phone: 1-800-762-1001

E-Mail: studentloans@pnc.com

To visit: Locate a branch that is close to you from this link https://apps.pnc.com/locator/#/search

 


How can PNC student loan refinancing improve? 

PNC student refinancing can consider the following : 

  1. Could help many borrowers by doing a soft credit check.
  2. Increasing the amount of refinancing can also attract borrowers.
  3. Extending forbearance time period.   
  4. By removing on-time payments for 48 consecutive months for the cosigner release program
  5. By increasing more flexible repayment options