Student loan refinancing is not an easy thing to get these days. This is a process based on the credit history, the credit itself, and the income possibilities of the person. As a result, not many approvers or insurance companies offer this possibility to anyone. As happens in the case of USAA student loan refinance.
Unfortunately, USAA Student loan refinance has been discontinued since 2016, no longer offering the military and their family members associated with USAA the possibility to organize the payments for their college fees. A decision that was highly criticized at the time and now still brings criticism to USAA.
USAA Student loan partnership with Wells Fargo
Until 2016, the company, which has more than a century in the insurance and loan market, offered student loans among its services. This is thanks to the Wells Fargo loan program with a surprising USAA Student loan rate of 0.25%, which is surprising because, in the middle of 2023, these fees hover around 5%.
So, although it was never “possible” as such to obtain student loans through USAA, they opened the possibility to do so. A possibility that unfortunately no longer exists since a few years ago for business reasons. Forcing also those who had active loans, to refinance them.
USAA student loan refinancing
If you ask yourself: “Can a student loan be refinanced?” the answer is a resounding yes. Many borrowers who had student loans with USAA resorted to refinancing them. Especially in cases where both the financial situation and credit history have benefited since the loan application.
This has led to the possibility of obtaining lower repayment installments and fees than originally planned. This is a process that must be done directly with Wells Fargo, so you don’t have to worry about losing your USAA benefits.
Refinancing has become an ideal option for those who have improved their financial situation after leaving college life. This is often the case for many who took out a student loan as their first option. This opens the door to lower interest rates than the original ones.
Should I refinance my student loan?
While student loan refinancing is not an easy thing to get because of the requirements that are usually imposed. The fact that you are in a better financial situation than when you applied for the loan makes you qualified to do it.
The first thing to do will always be to get an ideal refinancing option that suits your financial possibilities. Once you have done this, you will only have to start the application process which varies from company to company.
But, how do you qualify for a student loan refinance? These requirements may vary depending on the refinancing company. But in general, they are:
- A Debt-to-Income Ratio Under 50%
- A Minimum Credit Score of 650
- A Steady Job or Consistent Income
- A Balance of at Least $5,000
- Completing Your Degree Program
- No Student Loans Currently in Default
What should I be concerned about when refinancing my USAA student loan?
Refinancing a student loan is not a process to do with your eyes closed. When we do this we have to keep in mind that we are committing to a repayment plan that could affect our credit history. Refinancing a loan is not a game, it is an object of study and analysis with previous time.
That is why we must choose where we will carry out the process carefully. This considering that if we do not choose well we could end up with even higher debt or worse interest rates. That is why many users see refinancing as a trap imposed by banking entities.
Where can I refinance my USAA student loan?
If you have a foreclosed loan from USAA with Wells Fargo, you are probably wondering what refinancing chances are possible. Let us tell you that this is possible and there are different options on the market that may suit you and your needs.
Splash Financial
If you are looking for better customer service similar to USAA, this is definitely your best option. Splash Financial student loan refinancing is a program focused on ease and speed in both the application and payment process.
In the same way, they are responsible for comparing rates from different lenders. Putting the best options in front of you in just minutes. Whether you’re looking for fewer fees, less interest per installment or to change your payment plan altogether.
Laurel Road
Laurel Road refinancing is one of the best student loan refinancing programs in the country. With below-average APRs, the ability to opt for flexible payments, and different payment plans, it is certainly an option to consider.
Through their website (laurelroad.com), you can start this process in just minutes. By filling out a series of forms without any strings attached, you will be able to see how your installments and payment times will look like. You can then decide whether to continue this process with them.
MPOWER
MPOWER is one of those safe options that everyone should consider. While you still have to go through the approval process, many users purchase this option looking for the ability to pay off their loans sooner. Thus taking the possibility of paying less in interest and getting out of debt in a shorter period of time.
Although this may increase your monthly payments, it is not a bad idea if you feel your financial situation allows it. Even more so if you are looking to get rid of that annoying interest. This is often an option for graduates of large universities who are looking to get out of debt quickly.
References
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Planner, Student Loan. 9 Best Student Loan Refinance Companies Ranked in 2022 + Their Response to the Pandemic. YouTube, https://www.youtube.com/watch?v=sRUzO4d1tWc.
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Proctor, Clint. “USAA Student Loans Review | Student Loan Planner.” Student Loan Planner, https://www.studentloanplanner.com/usaa-student-loan-refinance-guide/.
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“Refinance Student Loans with Laurel Road | Federal and Private.” Laurel Road, https://www.laurelroad.com/refinance-student-loans/.
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ScaleFocus. “Refinance Your Student Loan – MPOWER Financing.” MPOWER Financing, https://www.mpowerfinancing.com/get-a-loan/refinance-international-student-loan?utm_campaign=g-performancemax-mba-stem-international_potential&utm_source=google&utm_medium=cpc&gclid=Cj0KCQiA8aOeBhCWARIsANRFrQG2ryVabmnf_oC6pjAursaUoAdDcDbmki8nm2vOBJwwJJklRn_o1YEaAu7bEALw_wcB.
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“SLR-Branded – Splash Financial.” Splash Financial, https://www.facebook.com/SplashFinancial/, https://www.splashfinancial.com/lp-media/slr-branded?utm_source=google&gclid=Cj0KCQiA8aOeBhCWARIsANRFrQHf566rU0lqaM9d4_Z8YiQHcQ1fpEh3kp_XA1r7hh91lmfwnHmV6J0aAg66EALw_wcB&utm_medium=sem_brand&utm_campaign=SLR_Acq_Branded_Exact_Search.