Lenders who refinance non-degree student education loans
If you've student loans but no degree, managing your repayment could be more difficult, especially if you're looking to refinance. Most lenders need a degree for refinancing, but there are some exceptions. Here's where to start if you are attempting to refinance your student loans with no degree.
What is student loan refinancing?
Student loan refinancing is the process of consolidating current student education loans right into a single new loan having a private lender. This gives you mortgage loan determined by your credit rating and history (and people of the co-signer, for those who have one).
Although you are able to refinance federal and loans, you lose all your federal protections whenever you refinance loans you have from the US Department of Education. For example, you are no longer entitled to income-based repayment plans, federal deferment, or civil service loan forgiveness. But you may be eligible for a a lesser rate of interest than you're currently paying, that might make refinancing worthwhile.
Can you refinance student loans without a degree?
Most lenders require borrowers to have a degree in order to refinance student loans. However, each lender has different eligibility criteria, therefore the lack of a diploma does not automatically exclude you from the potential of refinancing. Lenders usually require a bachelor's degree, however they may accept associate's degrees or no degree so long as you are employed or have a regular income source.
4 Lenders Who'll Refinance Student education loans For Borrowers Without A Degree
If you're exploring refinancing options, compare few different lenders to gauge in which you qualify and just what interest rates and terms are available to you. The lenders below do not require a degree to refinance, so they're good places to begin your research.
Citizens Bank
As long as you've made a minimum of 12 consecutive payments on your student education loans and also have at least $10,000 in eligible loans to refinance, you may qualify for a Citizens Bank refinance mortgage.
Citizens Bank has relatively low rates and five term options available. However, there are some downsides to keep in mind: you can't release a co-signer until you've made 36 payments on your new loan, and the minimum loan of $10,000 is very high.
ANC
Although you may not need a degree to refinance has given with PNC, you will need to have a minimum of $10,000 in student education loans and Two years of consecutive payments before you decide to qualify for refinancing. A stable employment and income history can also be required.
PNC offers a generous 0.5% discount for setting up autopay. However, borrowers without a degree are susceptible to high rates of interest and a maximum loan of $25,000.
Discover
Discover will refinance as little as $5,000 and up to $150,000, which makes it one of the most flexible refinance lenders around. There will also be no fees, not even late fees, and also the cap rates are relatively low.
Keep in your mind that Discover only has two repayment options – Ten or twenty years – which can be limiting. Additionally, postgraduate loans and loans removed when you were enrolled not even half the time can't be refinanced.
Massachusetts Education Finance Authority (MEFA)
MEFA refinance loans need you to make at least six consecutive payments on time on the loans you wish to refinance, but this does not require a degree. This means you might be eligible for a refinancing sooner than along with other lenders. Rates are low and you may find out if you prequalify without a credit assessment.
That said, MEFA doesn't offer variable interest rates, therefore it is not the best choice if you want the cheapest rates of interest available on the market. You must also have a minimum of $10,000 in eligible loans to qualify for refinancing with MEFA.
Other ways to repay your student loans
Refinancing is an excellent method to pay off your student loans, but it's not always the best choice for everyone. Consider other repayment options, including:
- Income Oriented Repayment Plans: Readily available for federal student education loans, income-based repayment plans base your monthly payments on your income and household size. So if you're not working right now, your instalments can be as low as $0 monthly. The remaining balance on your loans is canceled after 20 or 25 years, with respect to the plan you choose.
- Debt avalanche method: For those who have a lot of student education loans, your debt avalanche method can help you organize your financial troubles. With this process, you'll make regular payments on all your loans, but put all the extra money in to the loan using the highest interest rate. Do this before the loan pays off, then change to the borrowed funds with the highest rate of interest until all your loans are paid off entirely. This strategy will reduce the amount you end up paying in interest in your loans.
- Federal Loan Consolidation: Should you have only federal loans, you will want an immediate loan consolidation. Like refinancing, this combines all your loans into one manageable payment, but it won't cause you to lose access to federal benefits. You won't save anything with this method, but it may be worth it if you do not want to risk switching to some private lender.