If you aren't going to apply for a forgiveness program or income-driven repayment plan, student loan refinancing is a great option for lowering the amount you pay for the money you borrow.
In order to receive a lower interest rate, you'll need to have a strong credit score. You'll also need to provide proof of income. Certain student loan refinancers only work with borrowers who are in a certain occupation, or who have a certain amount of debt-to-income ratio. It depends on the refinancer, but for the most part, you'll need to be in a steady, well-paying occupation, with a history of on-time payments and a credit score of at least 650.
Student loan refinancing is a great opportunity to reduce the amount you pay for your student debt over time -- but first things first: you need to know if you qualify. Check out this student loan refinancing infographic from Credible to quickly find out if refinancing is the right path to take.
It’s a good idea if you have private student loans or you have federal student loans and don’t plan on taking advantage of a federal forgiveness program or income-driven repayment plan. You also need strong credit and a steady income to qualify for refinancing.
Applying for student loan refinancing takes time, and any hard inquiry on your credit score might lower your score slightly. You should make sure going through the process will be worth it - so check out a refinancing calculator (NerdWallet and Student Loan Hero are both great options)