If you've student loans but no degree, managing your repayment could be harder, particularly if you're looking to refinance. Most lenders need a degree for refinancing, but there are some exceptions. Here's where to start if you're attempting to refinance has given with no degree.
What is education loan refinancing?
Student loan refinancing is the procedure of consolidating current student loans right into a single new loan with a private lender. This gives you an interest rate based on your credit history and history (and those of the co-signer, if you have one).
Although you are able to refinance federal and private loans, you lose all of your federal protections whenever you refinance loans you have from the US Department of Education. For example, you're no longer eligible for income-based repayment plans, federal deferment, or civil service loan forgiveness. But you may qualify for a lesser interest rate than you're currently paying, which might make refinancing worthwhile.
Can you refinance student education loans with no degree?
Most lenders require borrowers to have a degree to be able to refinance student loans. However, each lender has different eligibility criteria, therefore the lack of a diploma does not automatically exclude you against the possibility of refinancing. Lenders usually need a bachelor's degree, but they may accept associate's degrees or no degree as long as you are employed or have a normal source of income.
4 Lenders Who'll Refinance Student education loans For Borrowers With no Degree
If you're exploring refinancing options, compare a few different lenders to gauge in which you qualify and what rates of interest and terms are for sale to you. The lenders below don't require a diploma to refinance, so they're good places to start your search.
As long as you have made a minimum of 12 consecutive payments in your student education loans and also have at least $10,000 in eligible loans to refinance, you may be eligible for a a Citizens Bank refinance loan.
Citizens Bank has relatively reduced rates and five term options available. However, there are some disadvantages in bear in mind: you cannot release a co-signer until you've made 36 payments on your new loan, and the minimum loan of $10,000 is quite high.
Although you may not require a degree to refinance has given with PNC, you will have to have a minimum of $10,000 in student loans and Two years of consecutive payments before you be eligible for a refinancing. A stable employment and income history is also required.
PNC provides a generous 0.5% discount for establishing autopay. However, borrowers without a degree are susceptible to high interest rates along with a maximum loan of $25,000.
Discover will refinance less than $5,000 and up to $150,000, which makes it one of the most flexible refinance lenders around. There will also be no fees, not really additional fees, and also the cap minute rates are relatively low.
Keep in mind that Discover only has two repayment options – 10 or 20 years – which may be limiting. Additionally, postgraduate loans and loans taken out while you were enrolled less than half time can't be refinanced.
Massachusetts Education Finance Authority (MEFA)
MEFA refinance loans need you to have made a minimum of six consecutive payments promptly on the loans you wish to refinance, but this does not require a degree. This means you might qualify for refinancing sooner than with other lenders. Rates are low and you may determine whether you prequalify without a credit assessment.
That said, MEFA doesn't offer variable interest rates, therefore it is not the right choice if you would like the cheapest rates of interest on the market. You will also need to have at least $10,000 in eligible loans to qualify for refinancing with MEFA.
Other methods to repay your student loans
Refinancing is one way to pay off your student loans, but it's not always the best choice for everyone. Consider other repayment options, including:
- Income Oriented Repayment Plans: Readily available for federal student education loans, income-based repayment plans base your monthly payments on your income and household size. So if you're not working right now, your instalments can be as low as $0 per month. The remaining balance on your loans is canceled after 20 or 25 years, with respect to the plan you choose.
- Debt avalanche method: For those who have lots of student loans, your debt avalanche method can help you organize your debt. With this process, your family will enjoy regular payments on all your loans, but put all the additional money into the loan with the highest rate of interest. Do this before the loan is paid off, then change to the borrowed funds using the highest rate of interest until all your loans are paid off in full. This strategy will lessen the amount you end up paying in interest on your loans.
- Federal Debt consolidation: Should you have only federal loans, you will want an immediate consolidation loan. Like refinancing, this combines all of your loans into one manageable payment, however it won't lead you to lose access to federal benefits. You won't save any money with this particular method, however it might be worth it if you don't want to risk switching to some private lender.