Student loan refinancing allows you to combine multiple federal or private student loans into a single student loan with a new interest rate and repayment term. The goal is to lower your monthly payments, but keep in mind that you could end up paying more over the life of the loan by stretching out its term
Student Loan Refinance Citizens Bank
If you refinance your student loans, your new lender likely will pay off your prior loans and issue you a single loan to cover the outstanding balance of the refinanced loan.
If you refinance your student loans, your new lender likely will pay off your prior loans and issue you a single loan to cover the outstanding balance of the refinanced loan.
Your new lender will also make all future payments on this single loan. This means that you will have a single monthly payment instead of multiple ones that add up to the same total amount. Your interest rate may be lower than it was before, but this depends on factors such as credit score and other variables specific to each applicant’s financial situation. In some cases, the interest rate could go up for successful applicants; however, if this happens (and it’s rare), it’s due mostly because borrowers with good credit records generally pay higher rates than those with middling or bad ones—the latter two categories being more apt to apply for student-loan refinancing through Citizens Bank/Citizens First Financial Corporation (CFFC).
Even though there are many similarities between these two types of loans (fixed vs adjustable), there are key differences worth noting: Fixed-rate mortgages have set terms and fixed monthly payments over those terms; adjustable-rate mortgages do not have predetermined terms or payments—they adjust periodically based upon certain market indicators such as interest rates themselves.”
If you refinance your federal student loans, you could lose certain benefits and protections, such as income-based repayment plans and forgiveness programs.
If you refinance your federal student loans, you could lose certain benefits and protections, such as income-based repayment plans and forgiveness programs.
If you refinance your federal student loans with Citizens Bank, it may be possible to switch to a different repayment plan. However, this option is not guaranteed.
You can lower your monthly payments by stretching out the term of your loan.
If you want to lower your monthly payments, you can extend the length of the loan. This may help you in two ways: First, by extending the term of your student loan and making more payments over time, you’ll pay less interest overall. Second, if your lender offers a fixed interest rate over a longer period (say 10 years instead of 5), it will be lower than what you’d get with a shorter-term repayment plan. You may have to pay more in total interest costs because this approach extends out how long it takes for all of your principal balance to be paid off.
But if you do that, it’s likely to cost you more in interest over the life of the student loan.
A lower interest rate will save you money over the life of your loan. But if you do that, it’s likely to cost you more in interest over the life of the student loan.
Interest rates are lower than they have been in the past. That means if you have good credit (a rating above 620), it could be worth refinancing your federal student loans at a lower rate. If your credit score is below 620 or if you don’t have any other loans with Citizens Bank, we recommend paying off all other debts before refinancing student loans.
If refinancing makes sense for your situation, think about how much time and effort it will take to get started on this process:
You also may be able to lower your payments by extending the term of your student loan.
You also may be able to lower your payments by extending the term of your student loan. For example, if you currently have a 10-year loan with monthly payments of $300 and choose to extend it for another 15 years, your monthly payment would drop to about $200 per month. However, extending the term of your student loan means you will pay more interest over its lifetime (making refinancing less attractive) and that you’ll be paying off this debt well into retirement age. This is why it’s important not just to think about what might happen if rates rise but also what will happen if they stay low (or fall even further).
Your ability to get a favorable interest rate on your refinanced loan depends on whether you have good credit, how much debt you have relative to your income and other factors.
Your ability to get a favorable interest rate on your refinanced loan depends on whether you have good credit, how much debt you have relative to your income and other factors.
If you have good credit, it’s possible to qualify for a low fixed rate of 4% if you are employed, or 5% if self-employed. If your FICO score is below 700, there will be more competition for the best rates. The lower your score is (below 620), the higher interest rate that you might need to pay in order to get approved for a loan.
Your debt-to-income ratio will also impact whether or not Citizens Bank can offer you better terms than those offered by federal student loan programs. If they believe that they can collect more money from someone else who has less debt relative to their income (but worse credit), then they won’t bother considering refinancing an option at all—they’re just going to sell off their portfolio of loans as quickly as possible at whatever price the market will bear because there’s no profit potential here for them otherwise.
Student loan refinancing allows you to combine multiple federal or private student loans into a single student loan with a new interest rate and repayment term.
- A student loan refinancing is when you consolidate your federal or private student loans into one new loan.
- This can lower the monthly payments for your previous loans, as well as reduce the interest rate.
- The term of the loan could also be extended and/or you may be able to get a lower interest rate on your new consolidated loan than what was originally offered by your original lender(s).
Closing
We hope you’ve found this information helpful. With so much to consider when refinancing your student loans, it’s always best to consult with a financial professional or lender before making any decisions. If you have questions about how refinancing might affect your personal finances or credit score, please contact us today! We’re happy to help answer any questions that you may have.