Student Loans! What Company do I Choose?

Question

Ibn Abney · Answer

@Victor So If a federal loan, keep with a federally back lender. They offer deferment, which is always a good Plan B just in case. Private banks don't care if you have a job or you are sick or anything. They just want their payment.

If already a private loan, then yes just shop around. Stay away from SOFI and other online type banks. If they dont have a physical location, I stay away. I find their customer service sucks when problems arise.

Good Luck!

Marcus Lawson · Answer

Hey Victor,

I'm a pharmacist as well and like you have Student debt. The government and state loans were 5.8 and 8% respectively. I used DRB Bank to refinance. One of the best decisions of my life. I got about 4% fixed rate and have saved over 10K already. Their online system is easy where you can make extra principle payments too. They verify income, credit score, debts, and profession. If you decide to go with DRB send me a message cause I can send you a link where we both get $200 upon approval.

James Petty · Answer

@Victor So

I am currently talking with First Republic which seems like a good deal at less than 4% fixed rate. From what I understand they typically only work with people in the upper-wage spectrum which you should qualify for. I think they only work wth people that are near to one of their bank locations though, which may restrict you. Maybe they're opening up in Chicago soon? Worth investigating.

Michael Lucero · Answer

Over how many years is the student debt to be paid off? Instead of refinancing with a bank, i would think of other options first. One would be to look into unsecured personal loans which are amazing. You take out a loan at a low rate and pay off the higher rate student loans. As a pharmacist i imagine u have a decently good salary and will be approved for some amount. Its absurdly easy to apply, all u need is to fill out an online application no other documentation is required, then they wire u the money in a few days and they dont ask for collateral against the loan (hence its unsecured lol). You just need good income and a good credit score. I just did it for a car i financed. I personally recommend Lightstream, its so good it seems, too good to be true. They have loans i think from 2-7 years at varying interest rates as low as 2.19%. Pm me if u have questions on lightstream.

Another option is to find someone who has cash and wants a aafe neary guaranteed rate of return. Maybe a relative wants to earn 2.5-5% interest and on their money and will give you the cash.

Chinmay J. · Answer

@Victor So - I have seen lot of commercials for SoFi. Its a relatively new company that operates in the student loan refinancing landscape. You should check it out.

Most of the college education, in my opinion, is useless, but if there is one area where I value higher education its in medical field. So hopefully, those student loans were worth it. Good luck with RE investing.

Victor So · Answer

Thanks everyone for your input!

Mark A. · Answer

Similar to when people ask "where can I get the best mortgage rate," the answer is that you should shop around. I looked at the rates through SoFi but found better rates for my student loans through a local bank that I built a relationship with.

Victor So · Answer

@James Petty Thanks for the info! I'll definitely look them up!

Christopher Giannino · Answer

@Victor So if you're looking into consolidating your students loans, I would look into Discovery or like the others have suggested, So-Fi.  I personally have never used either one but I have heard a lot of good reviews about both companies.  At the end of the day, you should consider the most reputable company that will offer the lowest APR on your loans.

When I graduated from college 4 years ago, I had 5 different student loans all at about 8% APR.  I ended up not consolidating any of my loans and just used the "snowball effect" to pay down my loans.  Basically, I paid all the monthly minimums on the loans but I took all the extra money available and made additional payments to the smallest loan.  This allowed me to pay off one of my loans within about a year.  Because I paid that loan off, I now had an extra $120/month (the minimum payment on the loan I just paid off) to put towards the next smallest loan.  Again, I was able to pay that loan off in about another year.  Fast forward to 4 years later, I paid off the majority of my student loans and now only have about $14k left.

Victor So · Answer

@Allen Fletcher

Thanks for the helpful advice! I'm actually looking into strategies to pay off my student loans faster. I was thinking I would consolidate and refinance my loans into a lower interest rate first and then pay down the loans since it'll still take me a few years to pay them off. So far, it seems like people are recommending SoFi.

Student Loans! What Company do I Choose?

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