PNC Bank's Education Refinance Loan allows for student borrowers to tackle their debt with more tailor-made repayment terms.
PNC’s new refinance loan aims to help student loan borrowers streamline their loans and manage their debt burdens. The company’s new Education Refinance Loan lets borrowers tackle their debt with new repayment terms that might better suit their financial position and circumstances.
What This New Loan Offers
With this loan, borrowers can pick whether they want a variable or fixed interest rate. The loan is based on a borrower’s credit and does not have an application or origination fee. If qualified, they might be able to get more desirable terms than they have with their original federal or private student loans.
“Higher education is a worthwhile, long-term investment and PNC recognizes the need for solutions to address the student debt burden, which for many can be overwhelming,” Naimesh Patel, general manager of PNC student lending, said in a press release while commenting on the new product.
If a borrower signs up to make automated payments from either a checking or savings account from PNC, they can get a discount of 0.50 percent from their interest rate, which will save them money. The automated payments can help borrowers stay current and on time, which can have a positive impact on their credit score.
One appealing feature of this refinance loan is that borrowers can use it for rolling over several student loans into one monthly payment. Instead of making multiple payments a month to various places, they can make one per month and be done with it.
Plus, if a borrower is having a hard time meeting the combined monthly payments of all their loans, they can decrease their monthly payment by upping the length of their loan. Although it will take longer to repay, it might be worth it to borrowers who are working entry-level jobs with smaller paychecks and those who are trying to improve their credit score by making on-time payments.
Before a borrower can be eligible for this loan, they must first have been making payments on their student loans for at least two years. They also must have two years of continuous employment and decent credit.
The loans can range from $10,000 to $75,000.
What Borrowers Should Know When Looking at Refinancing Options
Before a borrower refinances student loans, they should first make sure they’ll achieve their primary goal by doing so. Whether that goal is to get a lower monthly payment or a better interest rate, they need to read the fine print to ensure that’s what they’ll end up with.
And before locking in with any company, borrowers should look around. During their search, it helps to know their credit score. That way, they’ll be able to gauge what kind of rates they should expect to get from other student loan refinancing lenders. That will prevent them from taking the first offer they get – if it’s not competitive enough, they’ll be able to figure that out and keep searching.
Another important question to ask is if they’ll need a co-signer to secure the loan. If they do require one, borrowers may want to find out if a co-signer release is an option after part of the loan has been paid off.
Finally, borrowers might want to ask if there are flexible repayment options in case of a job loss or some other financial hardship. It might be a good idea for borrowers to find a company that will let them pursue a forbearance or other payment option if they find themselves struggling.
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