In the past decade, outstanding student loan debt has ballooned to $1.4 trillion, and there are now 44 million Americans who owe an average of $29,000 in student debt. Because the vast majority of students are in debt, refinancing student loans has become hugely popular. Further, the low interest-rate environment has made refinancing possible for many graduates. And in 2017, it’s now possible for non-U.S. citizens to refinance and consolidate student debt through a private lender like MPOWER Financing.
What does it mean to refinance student debt? During refinancing, the original lender pays off the existing loan in exchange for a new loan that is more favorable to the graduate. The new loan can be more appealing in a variety of ways. Indeed, the new loan may have lower interest rates and lower monthly payments.
Typically, refinancing your loans will save you money in the long run. Refinancing allows borrowers to take advantage of low-interest rates, or switch from a variable interest rate to a more steady fixed rate.
MPOWER Financing currently works with 223 universities across the nation, funding low-income domestic students, DACA students and international students who are excluded by the current student loan system.
Refinancing can lower monthly payments by extending the time available to repay the loan. For example, a borrower could have a 20-year loan that they have been paying off for five years. By refinancing with a 20-year term, the grad has given themselves an extra five years to repay the loan in full. Plus, debtors can extend the repayment term, which reduces the size of monthly payments.
According to LendEDU research, 96% of current students don’t know that you can refinance student debt. Once they find out it’s a possibility, they often have a number of questions after making the decision to refinance. There are many options in the private sector available to students in debt. Specifically, MPOWER offers a refinancing option to non-U.S. citizens who have graduated from college and provides financial advice as well.
Once the graduate has found a refinancing plan, their next step is to apply online for refinancing. The borrower must then wait for a reply from the lenders, consider available offers, and choose the most ideal option. It takes an average of 28 days from when the applicant is approved to when the loan is funded.
According to LendEDU’s research, the average graduate consolidates $53,892 in student debt. Additionally, the average term length of a refinanced student loan is 10.4 years. MPOWER offers repayment terms from 1 to 15 years.
Nearly a third, or 32.24%, of refinanced student loans are co-signed. At MPOWER, no-cosigner or collateral is required and fixed interest rates start at 7.99%.
Not all graduates will be approved for refinancing – in fact, 43% of all student debtors are denied during the application process.
If you’re interested in learning more about refinancing, click here to view available options from MPOWER Financing. MPOWER specializes in helping non-U.S. citizens refinance and consolidate student loan debt.
Most lenders require that you graduate to be eligible for a loan refinancing. There are some lenders that refinance to eligible students who have not completed their studies.
Yes, you can consolidate your federal as well as private loans without a degree. However, a better option is to opt for an income-driven repayment plan.
You can refinance your federal student loans into private, but there's no way to transfer private loans into federal loans.
Mike Brown is a staff writer at LendEDU, a financial literacy and personal finance website. Email: firstname.lastname@example.org
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