If you have a student loan, it’s likely that you’re wondering if you can refinance that debt. It turns out that it might be possible to refinance your student loan without a degree. However, the reality is that most students who attended college but didn’t graduate are not eligible for refinancing because they don’t have the mandatory job offer required by most lenders before they will approve an education loan refinance application.
Yes, it is possible to refinance your education loan without a degree
It is possible to refinance your education loan without a degree. If you have good credit, you can get a lower interest rate on your loans by refinancing them. If you have not yet been able to repay your loan and have a high debt-to-income ratio, then it may not be the best option for you. Student loan refinances without degree is a perfect option for others. Ensure to compare lenders’ pricing and requirements needed to apply. Student loan refinance without degree is a great option for many.
There are three good reasons to refinance a student loan—and two of them don’t require you to have a degree
- Lower interest rates. A lower interest rate means you pay less money over the life of your loan.
- Lower monthly payments. If you can make smaller monthly payments, you’ll be able to pay off your debt faster and save more money in interest costs by paying off more principal on each payment than if you had a higher monthly payment.
- The lower overall cost of debt (as compared with other options). Sometimes this comes in the form of lower interest rates and sometimes it comes in the form of reduced fees or penalties associated with certain kinds of loans (like public service loan forgiveness).
Professionals like Lantern by SoFi say, “You may refinance student loans without a degree with certain lenders.”
Even without a degree, you can still refinance your student loans if you meet certain criteria
- If you have a high-paying job, this can reduce the amount of interest on your loan and save money over time.
- If you have a good credit score, that may qualify as well.
- If the interest rate is low compared to other options (like credit cards), then refinancing could make sense for some people.
- Finally, if there’s enough slack in your budget to handle extra monthly payments without feeling it too much, then refinancing might help pay off the debt sooner—thus creating more flexibility for future spending decisions down the road.
How should you decide whether or not to refinance
To make the most of refinancing your education loans, you want to be sure that you’re getting a good deal. Make sure that your credit score is high enough for a low-interest rate and that the terms of your loan are beneficial.
In the end, only you can decide whether or not it’s worth it to refinance your student loans. If you are struggling with payments and think that refinancing will help alleviate that burden, then, by all means, go for it! But if you don’t meet certain criteria for refinancing without a degree or don’t want to take on any more debt than necessary, then this isn’t the best option for you.