Lenders that Refinances Student Loans Without a Degree
– Lenders that Refinances Student Loans –
Lenders that Refinances Student: If you have student loans but you never had a degree; Refinancing your student loan could be a very difficult tax. Because only a few lenders will refinance student loans if you haven’t earned a degree. Compared with degree-holders, borrowers who drop out of college are more likely to default on their loans.
Even if you never finished school, you still have to pay back your student loans. Refinancing can often help you get a better deal by renegotiating the rates and terms of your loans.
Not all lenders are willing to work with borrowers that don’t have a degree. However, those that do, usually have credit score and income requirements you need to meet to qualify.
What is Refinancing?
Refinancing your student loans involves taking out another loan to pay off your current student debts. Ideally with more favorable rates and terms.
You also might want to refinance your student debt if you want to lower your monthly repayments. Therefore, take a cosigner off of your loan or work with a more flexible lender.
Generally, you can benefit the most from refinancing if you have private student loans. That’s because federal loans already come with some of the most competitive rates, terms, and flexible repayment and forgiveness programs out there. Chances are your student loan refinancing company simply won’t beat the low rates you already have.
How Much You Save From Refinancing
How much you save from refinancing your student loans depends on your personal situation. Typically, borrowers who haven’t finished school won’t qualify for the most competitive rates since many lenders take your level of education into consideration.
Other factors like your credit score, income, and debt-to-income ratio (DTI) can affect how much you’re able to save. Already have an idea of what you might qualify for? Use our loan comparison calculator to put a number on your savings.
How to Qualify When You Don’t Have a Degree
If you want to refinance your student loans without a degree, the first step is to find lenders who will work with you. Some lenders require that borrowers have a degree because that reduces the odds that they’ll default on their loans.
But a growing number of lenders will help you refinance student loan debt without a degree — as long as you can meet the rest of their underwriting standards.
You might think your credit score is the most important factor in getting approved. But the most common reason why borrowers are turned down for refinancing is that their debt-to-income ratio is too high. Your debt-to-income ratio is how much of your monthly paycheck goes to paying off all of your existing obligations.
Each lender has its own eligibility requirements. Typically you must:
- Make at least $20,000 a year.
- Have good credit.
- Be a US citizen or permanent resident.
- Have attended a Title IV school
When You Don’t Qualify for Refinancing
If you don’t qualify for refinancing your loan. If you are having trouble making payments on federal loans, apply for an income-driven repayment plan. These plans cap payments at a percentage of your income and extend repayment length.
To enroll in an income-driven plan, you may need to first consolidate your federal loans into one new federal direct loan.
Consolidation won’t lower your interest rate like refinancing does. However, it could lower payment amounts by extending the repayment term.
If you have private loans that you can’t refinance, contact your lender to see what repayment options are available. You may be able to renegotiate the terms of your loan or lower payments for a period of time.
Lenders also usually offer hardship forbearance. Therefore it halts payments on loans temporarily while interest continues to build.
Lenders That Refinances Student Loans Without a Degree
Here are a listed few lenders, that are willing to refinance your student loan even without a degree;
If you’ve left school and landed a job or have another steady source of income. You can apply to refinance your student loans with Citizens Bank even if you didn’t earn your degree or are not a U.S. Citizen.
If you need a cosigner to get approved, Citizens will accept applications to have your cosigner released from their obligation after you’ve made 36 monthly payments.
- Fixed APR: 3.45%+¹
- Variable APR: 2.15%+¹
Loan Details and Eligibility
- Loan amounts: $10,000 – $350,000 (depending on degree type)
- Min annual income: $24,000
- Loan terms: 5, 7, 10, 15, 20
Massachusetts Educational Financing Authority (MEFA)
You don’t have to live in Massachusetts or have earned a degree to get help refinancing your student loans from the Massachusetts Educational Financing Authority (MEFA) — residents from any state are welcome to apply.
If you do need to apply with a cosigner, keep in mind they’ll be along for the ride until you pay off your loan. MEFA does not offer a cosigner release.
- Fixed APR: 3.60%+
- Variable APR: 3.33%+
Loan Details and Eligibility
- Loan minimum: $10,000 (no max)
- Min credit score: 670
- Loan terms: 7, 10, 15
Rhode Island Student Loan Authority (RISLA)
RISLA is another state student loan authority that provides refinancing to borrowers nationwide, even if you have no degree.
If you need a cosigner to refinance, you can apply to have them released from their obligation after you’ve made 24 consecutive on-time payments.
RISLA is also one of the few lenders that offer income-based repayment to borrowers who experience unexpected financial hardship.
- Fixed APR: 3.49%+
Loan Details and Eligibility
- Loan amounts: $7,500 – $250,000 (depends on degree type)
- Min credit score: 350
- Loan terms: 5, 8, 12, 15
Refinancing a student loan from a program you never finished isn’t impossible. But your options are limited. There’s also a chance that student loan refinancing just isn’t right for you at the moment.
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