Borrowing money for study is a way to get through college when there is one who is financially incapacitated. But, often, borrowers tend to be unable to pay back as at when due, it is for this reason why refinance companies were created to help students pay their debts and save money.
In this article, we will discuss the top list of best refinance companies in Canada to be able to choose which platform best suits your demands regarding student loans. Let’s get started with the definition of a student refinance loan.
Top List Of Best Student Loan Refinance
What’s Student Refinance Loan
A student loan refinancing is simply the process of taking out a new loan to pay off outstanding loans for study purposes. This is usually done to receive lower interest rates or to otherwise reduce the repayment amounts. There are a lot of factors that qualify a student for refinance loan this can be credit and earnings history, credit report, the school a student graduated from, degree earned, and the size of the loan the student want to refinance. We shall be showing you the Top List Of Best Student Loan Refinance
How to Choose the Best Student Loan Refinance Company in Canada
There are many loans refinance companies across the world and especially in Canada. It can be a bit tacky to choose which of the company to use for loan refinancing as it is known that the major reason for the loan refinance is to save money, so in that case, low-interest rate, as well as other factors, determines which company one can choose. The factors to consider when choosing the best student loan to refinance are as follows:
- Interest Rate Discounts: Most loans refinance companies offer borrowers a discount for making automatic payments, which is usually at 0.25%. Aside from that, they also give discounts to borrowers who open a bank account with them.
- Application Fees: Usually, most refinance loan companies doesn’t charge an application processing fee, origination fees, or prepayment penalties. So, in short, you need to check if the company is charging this fee or not before using it.
- Repayment Terms and Conditions: Another thing you need to consider is the payments terms and conditions. This has to do with the time given to pay your debt. It is usually monthly. Oftentimes, a shorter term equals more monthly payments and fewer savings and vice versa. So you should go for the company terms and conditions that suit your budget.
- Soft Credit Pull Availability: Most lenders let you check your interest rates through a soft credit pull that will not affect your credit score, so you should double-check if your lender affords you this service before applying for the loan.
- Loan Payment Deferment Options: Things might not always be has planned, so before opting for a lender, you should check if there is an option where you can pause payment for some times during challenging times, or being deployed in the military or other things related.
- Cosigners Option: Another thing you may want to consider before choosing a lender is if you can get a cosigner, especially if you don’t have a good credit score. In that case, a person with good creditworthiness can help you qualify for a refinancing loan and might even qualify you for lower interest rates.
- Transferring Parent PLUS Loans to a Child: A child’s loan taken by parents or guardians for a child’s education can be transferred into the child’s name through refinancing. If you need this to be done, you should ensure the refinancing company offers this service before applying.
Top List of Best Full List of Best Student Loan Refinance Companies in Canada
As earlier mentioned, many companies offer refinancing loans and picking the ones to choose can be a bit tacky, it is for this reason why we have compiled the Top List Of Best Student Loan Refinance in Canada which are as follows:
1. MPOWER Financing: This loan company provides loans to international students studying in Canada based on their future income potential and without requiring a cosigner or checking for good credit history. Its service cut across all fields of study at a fixed rate, however, the borrower must be enrolled in one of the 350 schools supported by the company.
Mpower financing didn’t have application, origination, or prepayment fees, and borrowers can choose from four in-school repayment options and three terms. Another advantage that this platform has is that it gives borrowers 6 months grace after graduation before starting the repayment and also there is a 1.50% discount interest rate, provided that the borrower meets certain requirements.
2. Earnest: Earnest is an online loan platform that was established in 2013 which provides repayment loans for private students as well as personal loans. It is credited to be one of the most flexible refinancing services in Canada as well as across the world. There are up to sixteen choices for repayment terms, which means borrowers have options that fit their demand.
An earnest loan is good for borrowers who want to customize their repayment schedule to pay off debt fast. Its variable rates are within 1.88% – 5.64% and the fixed rate is between 2.50% – 5.79% while loan amounts are pegged to be between $5,000 to $500,000. The platform has a different option that allows you to pause one payment annually, make automatic biweekly payments, or change the repayment date.
3. Citizen One: This international loan offers some of the lowest interest rates available, especially for its graduate and professional loans. It also as well offers medical residency and bar loans. Its rates are affordable. It gives a 0.25% interest rate discount for enrolling in automatic payment, and another 0.25% if the borrower or its cosigner opens a bank account with Citizens Bank. Citizen One allows borrowers to use a cosigner in case of a low credit score. Its minimum credit score is 650 while its repayment option can be 5, 10 or 15 years.
4. ELFI: When looking for a lender platform that offers one of the best transferring Parent PLUS Loans to a Child, ELFI is at the top of it. Thus, borrowers who want to assume the responsibility of their payment options for this company. Aside from that, it offers low rates, a fast application process, and great customer reviews. It has a cosigner deal, though, with a condition that you cannot release them after a certain number of on-time payments. Its minimum credit score is 680, and there is a repayment option of 5, 7, 10, 15 and 20 years. To be eligible for a loan on the platform, the borrower must refinance at least $15,000, which is a bit higher than the competitors.
5. Credible: Credible is also an online loan platform that offers the best rate guarantee. The service is free to use as it charges no user fees and other related fees. It has repayment options that borrowers can choose from, usually, the option is between five and twenty years. Cosigners are not required for all lenders, but it states that about 85% should apply with one. The credit score to took refinancing is between 670 and 700.
6. LendKey: This lending company is good if you want a small financial institution. It actually works with community banks and credit unions that refinance student loans. There is room for borrowers to check rates with a soft-credit pull and, if they apply with a cosigner, they are free to release them after 1 year of on-time payment. The minimum credit score is 640, a bit lower than most lending companies, while repayment options terms can be between 5 – 20 years. Land Key has a standard autopay rate of 0.25% while its loan amounts are between $5,000 and $300,000.
7. Splash Financial: Splash Financial is an online firm that offers student refinance loans from multiple partner lenders. The platform is good for borrowers who want from more than one lender. Its autopay rate is at a standard which is 0.25%. It doesn’t charge any fee for application, origination or repayment and if the borrower pays promptly, they can release the cosigner after 1 year of consecutively on-time payments. The repayment option to choose from are 5, 8, 10, 12, 15, or 20 years. You must have at least $5,000 in student loan debt to refinance with Splash Financial, and there is no loan maximum.
8. Pentagon Federal Credit Union ( Penfed): This company offers student loan refinancing for its members. It is good for couples refinancing together and has a personalized estimate rate through soft check. It is one of the few companies that allows borrowers to have cosigners and release them after 12 months of on-time payments. However, married couples are eligible for this option. The PenFed credit score is between 670-680, which is within the standard of other companies. The loan amount is $7,000 to $300,000 while the option of paying is 5, 8, 12, and 15 years. It doesn’t have 20 years option like most of the leading companies. Pen Fed is good for borrowers who want to refinance their parents’ PLUS loans.
Top List Of Best Student Loan Refinance loans can help you reduce the debts and save some money on any type of student loan, be it federal, private, or both. Many companies offer this service, but it can be difficult in picking which one to use. You must consider the above list of factors before choosing one of the many and in Canada, the above-highlighted firms are what we observed to be the best to choose. This is not compelling you to pick from it, as it is only base on recent ratings and real-life reviews. You must double-check the rate and other factors before opting to use the company, as these are subjected to change and reviews from the country.