For countless aspiring students, securing a student loan to pay for college tuition is necessary to bridge the gap when scholarships, grants and other sources of funding are not enough or not an option. Thankfully, there are a variety of different payment and refinancing routes to choose from. With so many courses of action to pursue – from private lenders to government-backed loans – it’s important to know your choices.
More than 44 million Americans, 70 percent of all college students, have student loans, totaling approximately $1.4 trillion. With so many people in need of funding, it can be tough to wade through all the available options to find the best choice for funding a college education. It’s a decision with both immediate and long-term consequences for students and graduates.
LendKey connects students with local lenders for in-school loan and refinancing options to ease this financial burden and help them pay off their loans faster.
We recently spoke with Jenna Bialik, a college graduate who refinanced her student loan through LendKey.com, about her experience of using LendKey to refinance her student loan debt.
Jenna attended Duke University where she obtained a Doctor of Physical Therapy degree. To fully focus on her studies and spend her time pursuing her degree, she needed full funding to cover her tuition costs and living expenses for three years.
After growing frustrated with her previous lender’s interest rate and payment schedule, Jenna thought it was time to make a change. She began searching around online for a better solution. She discovered LendKey, and after learning about their refinancing options and reading customer reviews of their services, Jenna knew she found the right partner to help her refinance her student loan.
Here’s what she had to say about her experience:
LK: What factored into your decision to refinance through LendKey?
JB: I liked what I read online about LendKey, including who endorsed them and how they were run. Ultimately, I obtained the best interest rate through LendKey compared to the other lenders with whom I applied.
LK: Did you appreciate/like that the application process was completely online and required no need to go to a physical branch?
JB: Yes, absolutely! That was a huge plus for me.
LK: What was the most informative part of the application process with LendKey?
JB: I called to speak to a representative for help with making sure I got all the necessary documents submitted and he was very informative as far as what I needed to submit.
LK: Did you speak to a LendKey customer care representative throughout the process?
LK: Were they friendly and helpful?
JB: Yes, very much so.
LK: Once you switched over to LendKey, how much money did you end up saving each month?
JB: I ended up saving $310 per month after switching.
LK: What was the interest rate before and after refinancing?
JB: Before: 6.125-6.5 percent. After changing it was 5.25 percent.
LK: Were the previous payments too big of a burden?
JB: No, but the interest rate was so high it wouldn’t have been paid off as soon.
LK: Were the previous processes too complex or confusing?
JB: I found one of my other lenders to be particularly difficult to deal with and refinanced with another company where the application process was much longer and more confusing.
Jenna was seeking out better loan terms with a smaller interest rate to help pay off her student loan faster. With her new refinancing plan and payment schedule in place, Jenna’s lowered interest rate and reduced monthly payments will speed up the repayment of her student loan, giving her greater financial stability and more peace of mind.
Being able to refinance takes off a heavy burden from student-loan borrowers who are already stressed about finding jobs and launching their new careers.