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Step 1
If you currently have student loans, you might be ready to refinance them so that you can save money on your monthly payments. If so, your first step will be to divide your federal government student loans and your private student loans. There is a separate process for repaying federal student loans, so you can't combine these two types. If you do have both, start with the federal student loans, since you are likely to get the best student loan refinance rates when consolidating these types of student loans.
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Step 2
Before starting to compare to prepare for a student loan refinance, you will need to have all the information gathered concerning your current student loans. Write down the lender names, your account numbers, the remaining balance on each loan, and your current interest rates. You will need all of this information to be handy when you start to do your research.
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Step 3
You can do some research on your own before you start talking to local banks by utilizing the online student loan refinance calculators that are common on Web sites. By using these calculators, you can get a good idea of what types of interest rates and terms you have available to you, so that you can better recognize a good deal when you talk to your local bank or lender. However, you might also decide to use an online lender.
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Step 4
Once you have all of your information together, start shopping around to your local banks for the best student loan refinance offer. Make sure you clearly understand all the terms and conditions of each loan offer, and pay attention to the interest rates of the loan. In order to save you money, you want to get a lower interest rate on the student loan refinance than you have on your existing loans. However, another important factor of refinancing your student loans is reducing your monthly payments, replacing multiple loan payments with only one.
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Step 5
Once you find the best student loan refinance deal, sign the loan application, and wait to see if you are approved. After being approved, you will sign the promissory note and begin the process of repaying your existing loans.
