It’s possible to refinance your student loans without a cosigner, but it could lower your approval odds and raise your interest rates.
Yes, however, while some private lenders may refinance student loans without a cosigner, some lenders may require you to have one. Typically, these lenders allow you to apply to release the cosigner from the loan after you make a certain number of on-time payments and meet other eligibility requirements.A cosigner is a creditworthy person who applies for a loan with the main borrower and agrees to be held legally responsible for the debt if the primary borrower fails to repay the loan as agreed.
Many private student loan lenders also offer the option to refinance your federal student loans. Be aware, however, that you’ll lose government protections like forbearance and deferment, income-driven repayment plans, and the potential for student loan forgiveness if you refinance federal student loans. Depending on your situation, it could be better to consolidate your federal student loans into a Direct Consolidation Loan.
If it makes sense to keep your federal loans federal, however, you can consolidate and combine them into one loan, called a Direct Consolidation Loan via the Department of Education. Through this option, you can apply without a cosigner to consolidate. Bear in mind, private student loans don’t qualify for federal consolidation as they are from private lenders and not the Education Department.With federal loans, the terms refinancing and consolidation are often used interchangeably. But there is an important difference between the two.combines your private and/or federal loans into a new private loan with a private lender.
Unlike refinancing, the Debt Consolidation Loan is only available to borrowers with federal student loans, and there are no minimum thresholds or maximum limits. You can simplify your student loan management by combining federal loans into one loan, with one payment, for a term of up to 30 years. Of course, the longer your term, the more you’ll pay to your lender over the life of your new loan.
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