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Student loan refinance options expand as federal SAVE program ends
The article highlights that refinancing could mean faster funding for some borrowers, but federal borrowers may also give up certain protections and forgiveness opportunities.
Yahoo Finance points to growing urgency for federal student loan borrowers as the SAVE program ends and major repayment changes arrive this year, suggesting that borrowers may want to review their options, including refinancing.
The guide says refinancing can lower a rate or combine multiple payments into a single monthly bill, while also warning that refinancing federal loans could reduce eligibility for protections and forgiveness tied to federal terms.
For borrowers considering SoFi, the article notes a $5,000 minimum loan amount, repayment terms of five to 20 years, no loan limit, and the ability to defer payments if returning to school. It also says SoFi typically sends the payment to the previous loan servicer in about 7 to 15 business days after the new loan is finalized, with the first payment due 25 to 30 days later.
The piece also spotlights College Ave, which similarly lists a $5,000 minimum and five to 20 year terms, and says borrowers can generally expect the previous servicer to receive payment within three to four weeks after the new loan is finalized. It adds potential tradeoffs, including that its lowest rates are slightly higher than some other lenders in the comparison and that the provider offers limited information about deferment or forbearance.