In recent years, the issue of student loan debt has become a growing problem for many Americans. With the rising cost of higher education, more and more students are turning to Student Loans to finance their education. However, repaying these loans can be a daunting task, with many borrowers struggling to keep up with their monthly payments. In response to this growing problem, many companies have emerged offering student loan refinancing options to help borrowers better manage their debt. In this article, we will explore the top five best companies for refinancing student loans in 2021.
## What is Student Loan Refinancing?
Before we delve into the top companies for student loan refinancing, let’s first understand what student loan refinancing is. Student loan refinancing is the process of taking out a new loan to pay off one or more existing student loans. This new loan often comes with a lower interest rate, potentially saving borrowers money over the life of the loan.
There are several benefits to refinancing student loans, including potentially lowering monthly payments, lowering interest rates, and simplifying payment by combining multiple loans into one. However, it’s essential to consider the terms and conditions of the new loan before refinancing to ensure it meets your financial goals.
## Top 5 Best Companies for Refinancing Student Loans in 2021
1. **SoFi**
SoFi is a popular choice for student loan refinancing, offering competitive interest rates and flexible repayment options. The company also provides career counseling services and networking events to help borrowers advance in their careers. SoFi does not charge any fees for refinancing, making it an attractive option for many borrowers. Additionally, SoFi offers both fixed and variable interest rate options, allowing borrowers to choose the best option for their financial situation.
2. **Earnest**
Earnest is another top company for student loan refinancing, known for its personalized approach to lending. Earnest takes a holistic approach to underwriting, considering factors such as earning potential, education, and savings habits in addition to credit score. This approach allows Earnest to offer competitive rates to borrowers who may not qualify for traditional refinancing options. Earnest also offers flexible repayment terms, allowing borrowers to customize their monthly payments to fit their budget.
3. **LendKey**
LendKey is a platform that connects borrowers with credit unions and community banks offering student loan refinancing options. LendKey partners with over 300 lenders, allowing borrowers to compare rates from multiple institutions to find the best option for their needs. LendKey offers both fixed and variable rate loans and flexible repayment terms, making it a popular choice for borrowers looking to refinance their student loans.
4. **Splash Financial**
Splash Financial is another top company for student loan refinancing, offering competitive rates and a simple, straightforward application process. Splash Financial partners with banks and credit unions to offer a variety of refinancing options to borrowers, including fixed and variable rate loans. Splash Financial also offers a customer loyalty program, where borrowers can earn rewards for making on-time payments. Splash Financial does not charge any origination or prepayment fees, making it a cost-effective option for many borrowers.
5. **CommonBond**
CommonBond is a well-known student loan refinancing company, offering competitive rates and a variety of repayment options. CommonBond offers fixed and variable rate loans, as well as hybrid loans that combine features of both. CommonBond also offers a unique “Giveback” program, where for every loan funded, the company pays for a child’s education in a developing country. This socially responsible approach has made CommonBond a popular choice for borrowers looking to refinance their student loans.
## Conclusion
In conclusion, student loan refinancing can be a valuable tool for borrowers looking to lower their monthly payments, reduce interest rates, and simplify their debt. The top five companies for student loan refinancing in 2021 offer competitive rates, flexible repayment options, and excellent customer service. Before refinancing your student loans, be sure to compare rates from multiple lenders to find the best option for your financial situation. With the right refinancing company, you can take control of your student loan debt and move towards financial freedom.
## What is Student Loan Refinancing?
Before we delve into the top companies for student loan refinancing, let’s first understand what student loan refinancing is. Student loan refinancing is the process of taking out a new loan to pay off one or more existing student loans. This new loan often comes with a lower interest rate, potentially saving borrowers money over the life of the loan.
There are several benefits to refinancing student loans, including potentially lowering monthly payments, lowering interest rates, and simplifying payment by combining multiple loans into one. However, it’s essential to consider the terms and conditions of the new loan before refinancing to ensure it meets your financial goals.
## Top 5 Best Companies for Refinancing Student Loans in 2021
1. **SoFi**
SoFi is a popular choice for student loan refinancing, offering competitive interest rates and flexible repayment options. The company also provides career counseling services and networking events to help borrowers advance in their careers. SoFi does not charge any fees for refinancing, making it an attractive option for many borrowers. Additionally, SoFi offers both fixed and variable interest rate options, allowing borrowers to choose the best option for their financial situation.
2. **Earnest**
Earnest is another top company for student loan refinancing, known for its personalized approach to lending. Earnest takes a holistic approach to underwriting, considering factors such as earning potential, education, and savings habits in addition to credit score. This approach allows Earnest to offer competitive rates to borrowers who may not qualify for traditional refinancing options. Earnest also offers flexible repayment terms, allowing borrowers to customize their monthly payments to fit their budget.
3. **LendKey**
LendKey is a platform that connects borrowers with credit unions and community banks offering student loan refinancing options. LendKey partners with over 300 lenders, allowing borrowers to compare rates from multiple institutions to find the best option for their needs. LendKey offers both fixed and variable rate loans and flexible repayment terms, making it a popular choice for borrowers looking to refinance their student loans.
4. **Splash Financial**
Splash Financial is another top company for student loan refinancing, offering competitive rates and a simple, straightforward application process. Splash Financial partners with banks and credit unions to offer a variety of refinancing options to borrowers, including fixed and variable rate loans. Splash Financial also offers a customer loyalty program, where borrowers can earn rewards for making on-time payments. Splash Financial does not charge any origination or prepayment fees, making it a cost-effective option for many borrowers.
5. **CommonBond**
CommonBond is a well-known student loan refinancing company, offering competitive rates and a variety of repayment options. CommonBond offers fixed and variable rate loans, as well as hybrid loans that combine features of both. CommonBond also offers a unique “Giveback” program, where for every loan funded, the company pays for a child’s education in a developing country. This socially responsible approach has made CommonBond a popular choice for borrowers looking to refinance their student loans.
## Conclusion
In conclusion, student loan refinancing can be a valuable tool for borrowers looking to lower their monthly payments, reduce interest rates, and simplify their debt. The top five companies for student loan refinancing in 2021 offer competitive rates, flexible repayment options, and excellent customer service. Before refinancing your student loans, be sure to compare rates from multiple lenders to find the best option for your financial situation. With the right refinancing company, you can take control of your student loan debt and move towards financial freedom.
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