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6 Signs it’s the Right Time to Refinance Your Student Loans

No matter how great college was, chances are your student loan payments aren’t your favorite way to remember it. And reality really kicks in when you have to put off a vacation, home remodel, proposal, wedding, or other big life event until you get them paid off. Student loan refinancing is one way to reduce the amount you have to repay, change your monthly payment amounts, and even vary the length of time it’ll take to pay off your loans–but refinancing isn’t for everyone. If you can check the box on each of the below, however, chances are pretty high Earnest is a good bet for you.

6 signs its the right time to refinance your student loans

You could use some extra pennies down the line (1.79 million of them, to be exact).

Earnest clients save, on average, $17,936 (or 1,793,600 pennies… ok, fine, math jokes aren’t funny. See how we calculated that here).

But in all seriousness, refinancing could save you thousands of dollars. How? At it’s most basic, Earnest can give you a better loan rate once you’ve proven you’re financially responsible (think: making your payments on time, having a steady job, all those things you might not have been able to prove as a younger version of yourself taking out a loan).

Check our student loan calculator to compare your rates.

Not only are you helping get your bills in order, but you’re also helping prep for those important events down the road by saving big time each month. Think – that big trip, a down payment on your future home, your first (or second, or third!) child, you name it. If you don’t want to save a ton of money, stop reading now (and check your pulse).

You’re old enough to buy a lottery ticket.

You have to be 18 to refinance your student loans with Earnest. If, by chance, you’re a brilliant rocket scientist who’s under 18 with a college degree, take a break because you’re making the rest of us look slow…and check us out – we’re hiring!

You’re a college grad (or almost-grad).

Like we mentioned about earlier, Earnest can refinance your student loan at a lower rate once you have a history of payments, a regular salary, etc. under your belt. The best candidates for student loan refinancing with Earnest are typically a few years out of school, but you can apply as long as you’ve graduated or are in your last semester. The sooner you refinance, the sooner you can start saving. If you haven’t yet graduated, hold your horses and come back to us once you have that diploma.

You’ve got a job locked down.

As much as we’d like to promise you a lower rate regardless of your employment situation, we want to be sure that you’ll complete your monthly payments on time. What counts as proof of employment? Proof of direct deposits work, or even an offer letter if you’ve recently landed a new gig (and, if so, congrats!). If you’re still on the job hunt, keep us on the back burner until you’ve found yourself an employer.

You’re well-read when it comes to budgeting.

At the end of the day, you’ll get a much better loan rate if you can prove that you’re financially stable. Here are a few of the main data points Earnest looks at to determine your financial stability:

  • Positive bank account balances
  • Savings for at least one month of normal expenses
  • Proof of income that supports your living expenses as well as your student loan payments
  • Little-to-no revolving credit card debt
  • Your payment history for any type of debt–student loans, credit cards, mortgages

Your John Hancock is on the student loan.

Unfortunately, you can’t refinance student loans on behalf of your friend, cousin, or furry friend. That also means that, if your loans were originally taken out under your parent’s name, they’ll have to do the refinancing. But don’t despair! The good news: that’s just as easy for them to do as it would be for you (as long as they can figure out how to work their 1999 iMac).

So… you’re still here. We’re guessing that means you answered “yes” to all six signs. You know what that means? That you’re probably a great candidate for student loan refinancing! So get to it–and get back out there. We’ll be over here making your student loans easier (and cheaper!).

Think refinancing is for you? Check your rate in 2 minutes here.

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Earnest is a technology company using software automation, smart design, and exceptional service to restore trust in the lending industry and help clients take control of their finances.