LendKey’s Frequently Asked Questions
- What types of loans can I refinance?
- You can refinance your private and/or federal student loans that were taken out in your name as the student borrower.
- How does the student loan refinance process work?
- The first step to refinancing is to check what interest rates and terms you are offered via a soft credit check that has no negative impact on your credit. If you like the loan options you see, you can then submit an online application with a hard credit inquiry, which may impact your credit.
- From there, you will select the loan(s) you want to refinance and will be required to provide certain documents such as a government-issued ID, proof of income, and a loan statement from your current servicer for each loan you want to refinance.
- After the documentation has been approved, you will be able to electronically review your loan disclosures and sign your loan agreement, before we disburse the funds to pay off your old loans and create a new refinanced loan serviced through LendKey.
- The first step to refinancing is to check what interest rates and terms you are offered via a soft credit check that has no negative impact on your credit. If you like the loan options you see, you can then submit an online application with a hard credit inquiry, which may impact your credit.
- When is the best time to refinance?
- The first step is to check your rates to see if our lending partners can offer more competitive terms than what you already have. Please keep in mind that if you are currently utilizing an in-school deferment option or grace period you will move into full repayment after your loans have been refinanced.
- Can I refinance my private and federal loans together?
- Yes, we can refinance private and federal student loans together that were taken out in your name as the student borrower.
- Please be advised that there are specific benefits that come with federal loans such as loan forgiveness and income-based repayment options, you will be forfeiting your eligibility for receiving those benefits when you refinance with a private lender.
- Please see our blog to learn more about refinancing your federal loans.
- Please be advised that there are specific benefits that come with federal loans such as loan forgiveness and income-based repayment options, you will be forfeiting your eligibility for receiving those benefits when you refinance with a private lender.
- Yes, we can refinance private and federal student loans together that were taken out in your name as the student borrower.
- What is the difference between student loan refinancing and student loan consolidation?
- Student loan consolidation is the Department of Education’s program where you combine multiple federal loans into one, resulting in a weighted average interest rate of your previous loans. Private student loans are not eligible for federal student loan consolidation.
- Student loan refinancing is done through a private lender and can combine one or all your private and/or federal student loans into one monthly payment. Terms of private student loan refinancing are determined by a credit-based application, meaning if you are approved, you could receive a new interest rate and new repayment term. This may help you save money on interest and/or change the length of your loan term to better fit your financial needs.
- What happens if I refinance my federal loans with a private lender?
- If you refinance your federal loans with a private lender, it becomes a private loan.
- When you do this, you are forfeiting your eligibility to receive the specific benefits and protections that come with federal loans, such as loan forgiveness and income-based repayment options.
- Please see our blog to learn more about refinancing your federal loans.
- When you do this, you are forfeiting your eligibility to receive the specific benefits and protections that come with federal loans, such as loan forgiveness and income-based repayment options.
- If you refinance your federal loans with a private lender, it becomes a private loan.
- Can I choose to only refinance my student loans with high interest rates?
- Yes, after you have been conditionally approved, you can select which specific loans you want to refinance.
- We will then update the loan amount based on the loans you have selected and provided documentation for.
- Please be advised that your final loan amount of all the loans combined you want to refinance will need to exceed the $5,000 minimum requirement (Except if you are a resident of AZ: $10,001; CT: $15,001; MA: $6,000).
- Yes, after you have been conditionally approved, you can select which specific loans you want to refinance.
- My loans aren’t from the school I graduated from. Is that a problem?
- No, if you have graduated with at least an associate degree from a Title-IV participating school, you are eligible to refinance if you meet the other eligibility requirements, and it does not matter what school the loans were used to attend.
- Can I refinance while I am still in school?
- Yes, if you have graduated with at least an associate degree from a Title-IV participating school, you can refinance your loans even if you are still currently in school.
- Please be advised that once you refinance, your loans will go into repayment, and you could lose out on in-school repayment options that are associated with your current loans.
- Yes, if you have graduated with at least an associate degree from a Title-IV participating school, you can refinance your loans even if you are still currently in school.
- Can I refinance a loan that was previously consolidated or refinanced?
- Yes, whether you have previously consolidated your student loans with the Department of Education or refinanced with a private lender, you can refinance again through one of LendKey’s lending partners.
- Will checking my rates affect my credit?
- You can check your rates without impacting your credit using the check your rate tool. Checking your rates will show you the rates and terms you may qualify for.
- If you select a loan option and decide to complete the application, a hard credit inquiry will be performed, which may impact your credit.
- Will applying for this loan affect my credit?
- You can check your rates with LendKey without impacting your credit using the “check your rate” tool. Checking your rates will show you the rates and terms you may qualify for.
- If you select a loan option and decide to submit the application, a hard credit inquiry will be performed which may impact your credit.
- It is important to be mindful of how many credit applications you are submitting.
Cosigner Information
- Can I refinance loans that I took out as the parent?
- At this time, loans that were taken out in the name of the parent as the primary borrower, such as Parent PLUS loans are not eligible for refinancing through LendKey’s lending partners.
- Can I refinance loans that my parents took out on my behalf?
- Currently, only education loans that are in your name as the student primary borrower are eligible for refinancing through LendKey’s lending partners.
- Can my spouse and I refinance all our loans into one?
- Currently, LendKey’s lending partners only refinance education loans that are in your name as the primary borrower.
- Can I refinance my credit card debt with my student loans?
- No, LendKey’s lending partners can only refinance qualified student loans that are in your name as the primary borrower.
- Who should be my cosigner?
- Typically, your cosigner may be a parent, grandparent, guardian, or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you.
- A cosigner may increase your chances of approval or help you qualify for better terms.
- How do I cosign my student’s loan?
- After the borrower part of the application has been completed an email will be sent to the cosigner with a link to click to enter the cosigner’s information.
- What responsibilities do I have as a cosigner?
- The cosigner shares the same responsibilities as the borrower for the loan.
- This includes ensuring on-time monthly payments.
- That means as the cosigner, you may experience the same positive impact on your credit score as the borrower for making on-time monthly payments but will likely face the same negative credit impact for late or missed payments.
- This includes ensuring on-time monthly payments.
- The cosigner shares the same responsibilities as the borrower for the loan.
- If I cosign for a student loan refinance, can I be released later?
- Yes, cosigner release is subject to lender approval.
- To qualify, the borrower, alone, must meet the following requirements:
- Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock.
- The account cannot be in delinquent status
- The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment.
- No bankruptcies or foreclosures in the last sixty months; and
- No loan defaults. For more information regarding this benefit, please give us a call at 888-549-9050 or email us at customer.care@lendkey.com.
Apply today: Student Loan Refinancing: Compare Your Rates & Save Money Now (lendkey.com)