"Withdrawing from college can make it difficult to refinance student loans, as many lenders require that you make it to graduation. However, there are some lenders that will refinance student loans without a degree," The Wall Street Journal reports.
... "It's possible to refinance student loans without a degree, though your options will be more limited. 'Many lenders prioritize an applicant's financial profile over their degree status,' says Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators (NASFAA)."
... "Lenders rely heavily on your credit and income when making approval decisions and assigning you an interest rate. Borrowers with a high credit score can typically access a lender's best interest rates, while those with lower scores may get stuck with higher rates or not be approved for a loan."
"'Many lenders prioritize an applicant's financial profile over their degree status,' Walter says."
... "Cons to consider - Could get stuck with a higher interest rate: If you didn't graduate and don't have a strong credit score, you may not qualify for a good rate. 'Be prepared to possibly see higher interest rates or more underwriting parameters depending on your financial situation,' says Walter."
... "If you're interested in refinancing student loans, shop around with multiple lenders to find the best offer. As you compare student loan refinance options, review each lender's criteria to see if the lender requires a college degree."
"You could also use a loan marketplace to compare offers from multiple lenders at once. Walter suggests looking locally, too. 'Borrowers may also want to look into credit unions or smaller, regional banks that may be more flexible than large national lenders, especially if they already have an established relationship with them,' she says."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 11/19/2024