Refinance Student Loans with ELFI

Yes, you may choose whether you’d like to refinance some or all of your student loan debt when going through the application process.

Student loan consolidation is the process of combining multiple loans into one loan.

The federal government offers the Federal Loan Consolidation program to borrowers of federal student loans, and only federal loans are eligible for the program (private student loans are not). Through the federal student loan consolidation, your loans are combined and the interest rate is the average of your loans rounded up to the nearest 1/8th of a percent.

Similar to consolidation, refinancing student loans involves combining multiple student loans into one loan with one monthly payment. However, unlike Direct Loan Consolidation, this option is only offered by private lenders and includes the consolidation of both federal and private student loans. Student loan refinancing can reward borrowers who demonstrate responsible financial habits with rates and payment options not offered through the federal consolidation program. New interest rates are calculated based on the borrower’s credit history and overall financial health, as well as current financial market conditions, rather than the weighted average of the included loans.

In order to qualify for student loan refinancing with ELFI, you must meet the following criteria, among other factors:

• Must be a U.S. citizen or permanent resident alien without conditions and with proper evidence of eligibility.
• Must be at the age of majority or older at the time of loan application.
• Must refinance at least $10,000 in student loan debt.
• Must have earned a Bachelor’s degree or higher.
• Must have a minimum income of $35,000.
• Must have a minimum credit score of 680.
• Must have a minimum credit history of 36 months.
• Must have received a bachelor’s degree from a Title IV U.s. domiciled non-profit college or university.

If you’d like to remove a cosigner from your student loan, one way to do so is by refinancing, as you will be paying off the old loan. By refinancing, you will release your cosigner from sharing responsibility for your loan.

ELFI does not charge any application fees, origination fees, or prepayment penalties for paying off your loan early.

With many lenders, there is no cost to refinance student loans. Before you sign on the dotted line, ask the lender you’d like to refinance with about their fee structure to ensure it meets your financial needs. Keep in mind that if you extend your repayment term to lower your monthly payment, you will pay more in interest over the life of the loan.

Choosing a reputable lender like ELFI is a great way to ensure you’re getting the most out of your refinancing experience.