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Student Loan Refinance Process
Updated On November 2, 2021
Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.
Now that you have made the decision to refinance your student loans, it is time to understand the student loan refinance process. Over the past five years, the process to refinance student loans has been simplified considerably. Gone are the days of piles of paperwork, long wait times, and bureaucracy.
So, what does the student loan refinance process look like? Here are 6 steps to make the student loan refinance process seamless for you:
1. Student Loan Refinance Process: Easy Application
- All the student loan refinance applications are online and you receive a student loan interest rate offer typically within 2 minutes
- The total student loan refinance application may take less than 15 minutes to complete
- Co-signers and parents can also apply online as well
2. Select Your Loan
- You can choose a fixed or variable student loan interest rate
- You can choose your loan term and decide how fast you want to pay off your student loan
3. Submit Your Loan Documentation
- You can submit your documentation online
- Some lenders will allow you to take a photo of your documents, or even submit via text
- Key documents include your:
– Driver’s license or passport (or government issued ID)
– Transcripts / Diploma to verify your degree
– Payoff statement from your current lender (if refinancing)
– Monthly rent amount or mortgage payments
– Two most recent pay stubs or tax returns (or offer letter of employment)
4. Lender Underwriting Review
- The lender will review your submitted documents and credit report
- The lender will apply its proprietary credit model to ensure that you meet all its underwriting criteria
You’re Approved!
5. Review Disclosures & Sign Loan Documentation
- Review truth in lending and other disclosure statements
- Sign your student loan documentation
6. Your Student Loan Is Disbursed
- If you refinance your student loans, your lender will issue you a new student loan and directly pay off your existing student loan from your existing lender
- If you borrow a new student loan, your lender will send the funds directly to your school
Refinance With SoFi
