Best Banks for Handling a Student Loan Consolidation
Time and circumstance can change the equation, so it’s time again to take a survey of the banks in the market that are handling student loan refinancing and see who’s got the best deals. In reviewing the industry, these are some of the best offers we could find, but you should know there are others available as well. You may not qualify for all these programs, but it’s always good to get a feel for what’s out there, what’s available, and how that changes over time. We are not affiliated with these banks, and do not recommend a bank or or refinance program. We do not guarantee any results or interest rate and the information provided may not be current. Comparison of banks and refinance programs is provided for informational purposes only and you should carefully confirm the benefits available when you seek to refinance your student loans.
Social Finance (SoFi)
Social Finance performs refinancing on both private and federal student loans, which is a solid plus in their favor, because not every bank will do that. Even better, there are programs available that cover both graduate and undergraduate loans with no origination fees or prepayment penalties. Even better, they’ve got an Entrepreneur program, and if you qualify for this, you can not only receive mentorship, but also a deferral on your loan, so if you’ve got an entrepreneurial spirit, this could be fantastic. Their programs also come with unemployment protection which pause the loan while you’re looking for a new job. The loan lengths are flexible too, with 5, 10, and 15 year options available.
The only caveat is that you have to have completed your education and gotten your degree. No option to consolidate if you haven’t finished. The rates are reasonable, ranging from 2.66% – 5.29% for variable rate loans, and 3.63% – 7.74% fixed.
CdStudent Loans
Some people just prefer to work with credit unions, and if that describes you then you’re in luck. Unfortunately, they’re not quite as flexible as the bank above. For starters, they only do private student loans, so if you have federal debt, you’re out of luck here. Also, the only term they offer is a fifteen year, or a four year interest-only option, if you want to go that route. The big selling point here though is the cosigner release, which becomes available after 12 consecutive payments. That can put a lot of minds at rest, and is certainly worth considering. Loans are variable rate only, and range from 3.97% to 7.47%, with a 0.25% rate reduction for automatic payments via ACH.
Darien Rowayton Bank
The good news is that they will do consolidations for both private and federal student loans. The bad news is, you’ve got to be an alumni of an MBA, Law, Medical/Dental (post residency) or Engineering graduate degree program. That’s going to rule a big percentage of people out, but if you meet that criterion, you can get some really great rates with this bank.
Variable rates range from 2.88% to 4.23%, while fixed range from 3.75% to 6.5%. Terms are 5, 10, 15, or 20 years, which is phenomenal, and they offer a 0.25% rate reduction for going with automatic payment via ACH.
This last entry underscores an important point. What you study in college matters in more ways than just job prospects on graduation. If you look at the differences between DRB and SoFi, you’ll see that your savings can be compelling indeed, depending on the degree program you’ve selected.
