Many Americans struggle with the issue of paying off their student loans. Attending the best colleges and universities in the country can be costly, especially for those who go the distance to get a graduate degree in addition to their undergraduate degree. It can take many years to pay off student loans, even when a person is well past graduation and is immersed in a career. Because of that difficulty, there are companies that allow people to get student loan refinancing. One of those companies is LendKey, which offers options that are different than others because it doesn’t directly lend to its borrowers. Instead, the company compares student loan refinancing options from over 300 community banks and credit unions. It is well worth investigating a thorough LendKey student loans review for anyone who is considering getting one of its refinancing loans.
Who is Eligible for LendKey’s Refinancing Options?
In general, people who want to acquire a LendKey loan for refinancing an undergraduate or graduate student loan can qualify. It should be noted, however, that eligibility requirements and terms of the loan depend on the specific company the LendKey works with, so it’s worthwhile to explore a few options.
What Kind of Interest Rates Can Be Expected?
With the LendKey student loan refinancing option, interest rates can be either fixed or variable. On average, a fixed interest rate of 3.25 to 7.26 percent can be expected. Variable interest rates may range from 2.43 to a maximum of 5.97 percent. Borrowers can have the option of paying off only the interest for the first four years after acquiring the loan.
It is also a nice perk that LendKey allows potential borrowers to compare student loan refinancing options from more than 300 community leaders. That way, the individual can choose the best option that suits their needs and financial situation.
What are LendKey’s Student Loan Refinancing Terms?
People who want to get LendKey’s student loan refinancing can refinance anywhere from a minimum of $7,500 in student loans to a maximum of $175,000 in their student loans. There are repayment terms of five, seven, 10 and 15 years, making it convenient and giving the individual plenty of options. In general, most lenders offer a discount in the form of a 0.25 interest rate to borrowers who sign up for the automatic debit payment option.
However, at the same time, it’s important to acknowledge that not all lenders are available to every borrower. For instance, credit unions take into consideration a number of factors before allowing someone to join. Typical criteria include where the person lives, what they do for a living and certain organizations or associations to which they belong. In the case of a community bank, the individual merely must live in the general area that the bank serves.
What are the General Requirements for Qualifying for a Loan?
The minimum qualifications for being able to get LendKey student loan financing is a credit score of at least 660 and an annual income of at least $24,000. However, the typical LendKey borrower has an average credit score of 728 and an income of $70,000 per year.
What are the Advantages of Using LendKey for Student Loan Refinancing?
There are a number of advantages that come with getting student loan refinancing from LendKey. Here are the most notable:
• Unified Application Process: LendKey’s application process is completely straightforward and takes very little time. Additionally, potential borrowers can choose the specific loan they want.
• Co-signer Release Available: Some individuals may need a co-signer, but after securing a low-interest rate with their student loan refinancing, they can release that person. After the borrower proves himself or herself to be responsible, once they have made 12 full and on-time payments, they no longer need a co-signer. Because the co-signer is let off the hook so quickly, it may be easier for borrowers to convince someone to co-sign with them.
• No Origination Fees: There is no origination fee for the loan.
• Further Interest Rate Reduction: After 10 percent of the loan principal is repaid during the repayment time, interest rates can be reduced by one percent.
• Federal and Private Loan Consolidation: Although federal benefits are lost, it is possible to consolidate federal and private loans to help with loan repayment.
• 2,200 Eligible Schools: LendKey allows individuals who graduated from as many as 2,200 schools to acquire its loan refinancing. The number of eligible schools is also always increasing.
• Excellent Customer Support: LendKey has excellent customer service, with a 97 percent customer satisfaction rating.
• Return Policy: LendKey allows borrowers to return their loan for any reason. It allows for 30 days without a return fee or interest penalties.
What are the Disadvantages of LendKey’s Loan Refinancing?
Of course, there are also disadvantages to getting student loan refinancing from LendKey. They are as follows:
• Doesn’t Give the Complete Picture: The company doesn’t give borrowers the complete picture due to working with so many institutions.
• Fine Print Easily Overlooked: There is no fine print on LendKey’s website because it is a loan matchmaker. With that said, it’s important for potential borrowers to read the fine print of every institution from which they are considering getting their student loan refinancing.
How is the LendKey Application Process?
There are only four steps to LendKey’s application process. Each is fairly easy and should take only a few minutes. They include the following:
• Step 1 involves estimating monthly payment amounts for the loan and determining the status of the person’s credit and the state in which they reside
• Step 2 is where the individual compares rates and offers available to them
• Step 3 involves filling out the application itself
• Step 4 requires verification of identity, school and income. It is also the step during which the potential borrower learns whether they are approved for the loan
Overall, this LendKey student loans review should be helpful for users who are considering this route for paying off their student loans. It’s important to do some research on different institutions and know all the terms and conditions from each as well before settling on a loan. Visit https://www.lendkey.com/ for more information and to apply.