It’s no secret that college is expensive. Even if you can pay your tuition with cash, the odds are still stacked against you when it comes to student loans. Not only do they come with high-interest rates and a long term (up to 30 years), but they also can’t be refinanced like other types of loans. That’s right—your student loan debt isn’t eligible for refinancing unless you’re in default or have a cosigner who qualifies for an income-driven repayment plan on their own.
But what if you could refinance your student loan? What if there was a way to pay off those pesky debts before they accumulate even more interest? Well, there is! It just takes some time (and some money). Here’s how to qualify for 30-year student loan refinancing:
Having Good Credit
You’ll need a good credit score to qualify for the 30-year student loan refinance. Your score is based on your history of paying bills, loans, and credit cards. If you’ve been late or missed payments in the past, it could negatively impact your ability to get approved for this type of loan.
Having a High Income
If you have a high income, it will help you qualify for a loan. A higher salary can lower the interest rate on your student loans. In addition to this, if your income is high enough and if the lender feels that they can trust that you will be able to pay back their loan (even though they don’t have any collateral), then they might be willing to lend money without requiring someone else’s signature as well.
Having a Low Debt-to-income Ratio
Your debt-to-income ratio is the ratio of your monthly debt payments to your monthly income. It’s a way to measure how much debt you’re carrying relative to your income, and it’s important for lenders because they want to ensure that you can repay your loan and make other financial commitments.
If you have little or no credit history and poor credit scores, then refinancing may not be an option for you–even if all other criteria are met.
Having a Strong Financial History
You’ll need a strong financial history to qualify for a 30-year student loan refinance. This means having:
● A good credit score: Borrowers with excellent credit will get the best rates on their loans; those with poor scores may not see any interest savings at all or may even end up paying more than they would have with an unsecured loan.
● Low debt-to-income ratio (DTI): If your DTI is too high, lenders may not approve your application because it could put undue strain on your finances and make it difficult to pay back both loans at once.
Having a Cosigner with Good Credit
You can also have a cosigner with good credit. For example, if you have a cosigner whose credit score is at least 650 and who has been in good standing for at least two years, then you may qualify for a 30-year refinance loan. Lantern by SoFi experts recommends “Comparing a handful of lenders to find interest rates and terms that are right for your needs.”
If you have good credit, a high income, and a low debt-to-income ratio, you will likely qualify for 30-year student loan refinancing. If you have cosigners with good credit scores who are willing to help out with monthly payments or other expenses, then it’s even easier!
