Today I’m going to talk about something that I personally don’t have a lot of experience with and that is student loans, we hadn’t worked with student lending for a long time.
And even when we did, it was its own department, there was nothing which I personally have to work with, so I don’t have a lot of experience when it comes to consolidating student loans or refinancing student loans. But that doesn’t mean that I haven’t heard about it.
I have a lot of members and viewers who email me and say, this is my situation. When it comes to student loans, I am not able to offer a lot. Besides of using your other secured forms of equity to pay down student loan debt, I don’t really know anything else or what recommendation I could give you.
But some members told me about a company called SOFI which is a student loan company, I didn’t know a lot about it, so I checked it out after hearing about it for a few times.
And it looks like that it is actually one of the biggest players in the student loan market, they say that it has about 15 billion dollars in funded loans and almost a quarter of a million active members, so it is not a small company, because I don’t work with student loans a lot.
I want to address one other thing which is that apparently Sofi works with more than just student loan refinances, they work with personal loans and mortgages parent loans for those that want to help out their children with their college as well.
They work with a whole bunch of financial features, but I want to talk about the student loans today since that’s the majority of the questions that I get asked about the situation. So next let’s look at some of the key benefits that they advertise and talk more about and find out if it is good enough.
Should I use this institution for my student loan needs? So I looked at their website and found out that they were interesting in a lot of stand points, they’ve got good rates for their student refinancing, it looks like they have fixed-rate and variable rate loans.
So typically your variable rate loans are a little bit lower on interest, but if rates increase, there’s a chance that your lungs could go up, that’s the risk of a variable rate loan, it’s low for the time being, but we don’t know what’s going to happen in the future.
Now fixed-rate loans are going to be a little bit higher than your variable rate loan, but they’re fixed for life, they’re not going be up or down, you don’t have to worry about any changes, which I think is good. I want to address these rates first.
Because in all honesty, the reason why you refinance is that you want to lower your interest rate to save money and interest or to consolidate some of those into fewer loans. Hopefully, you can consolidate all into one and that’s what they work with.
Another thing that they show on their website is that they can find out what your interest rate is without doing a hard credit check. They say that they can do a soft pull the first time to find out what your rates would be which have no impact on your credit score. Now if you proceed with a loan, you choose a product and you apply for it, and it is not going to show up a horrible inquiry which will affect your credit, all you need to do is to do the enquire to find out what your rate is going to be, don’t worry about that.
Another good feature I saw was that they actually work with private loans and federal loans, not everyone does that. I think Wells Fargo is one of the few places that is working with both types but there isn’t an institution, so I think it’s great that they work with both federal and private loan.
Another thing that they advertise is how easy it is. This is not some brick-and-mortar bank, so you’re not going to go to any of their locations, sit down, speak with a banker and explain the situation, most of which is done online. So whatever application you apply for, you put in documents that you submit, and most of it can be done, it looks like email which is a way to apply for loans for these days, and they’ll have you sign the documents, it is convenient. So I think it is an advantage because no one wants to take time out of their day and go through this stressful situation, because it is stressful.
But when you are trying to refinance or consolidate your finance, it will pay off in the long run of inconvenience, because you’re going to have lower rates, fewer payments to make all the stuff that can help you out from a financial perspective.
Now the next part I want to address is that I’ve read some reviews about how great this is, but what they offer is something called your unemployment protection, so if you have one of their loans and during the time when you’re paying off this loan, you lose your job, they offer an unemployment protection tour. They will help you defer your payments for three months. Now one thing to note is that on their site, they say apply, so I guess it’s not automatic, not everyone gets it and you have to apply.
And I read a review, in which a customer applied for the loan and he said it was great, and the interest rate was great too, but he was actually in the situation and it wasn’t the easiest process to claim that benefit that unemployment protection. So keep an eye on that, I want to say it is a good feature in the sense that it’s offered. But I also want to say that it’s probably not going to be the easiest thing in the world, if you need to utilize something like that.
Now the last thing I want to talk about is that I think it’s a 50-50 chance, how accurate this is. But they say they look past your credit score and you are not going to receive a decision solely based on your credit score, they look at things like your job history, your debt to income ratio, your ability to repay loans in the past, they look at all those things, not just your credit score, but your credit score may determine your interest rate in any institution, however other factors are like, job history, debt to income ratios, your ability to repay in the past, will determine whether or not you’re approved.
It’s good that they look past just your credit score, but I don’t want to make it feel like a really rare thing, because most institutions look at things other than just your credit score specifically. So student loans are up there with mortgages like big huge loans that could take years and years to pay off.
A lot of people talk about student loans, it’s a big bubble for the economy which is going to pop and it’s not going to be a good situation, and you don’t know when that will happen, but if you have those student loans, you should look into all of your loans to get those in a better financial situation.
So if you are interested in it, they have a referral program, which is cool, it is if you join through a referral, you will get $100 towards your student loan. So if you are interested, I’ll have a link below, it will help you get that referral.
But I don’t work with these people, I don’t have a loan to these people, this is trying to find a company that can help out, because I don’t know other institutions that do a great job when it comes to student loans. Hopefully, so if I can provide that for both my viewers and anyone who’s interested, it seems like they have really good reviews.
So check them out, let us know what you think. If you have already had a fine loan before and you’ve experienced great things with them, definitely let us know. Likewise, if you’ve been with them before, and you’re not a fan of their services, explain that in the below list. Your grievances maybe speed bumps or pitfalls that a lot of other new users can avoid in the future. So that’s what I want to talk about today, I want to mention one thing quickly here, which is $13,000 below and that is going towards our goal for 2017, which is to help my viewers save one hundred and fifty thousand dollars in interest.
And I made another video to which I can link here as well, but the main goal for this channel this year is to help viewers save a hundred and fifty thousand dollars in interest. Now student loan can be a huge way to get that goal accomplished, if you’ve got like forty thousand dollars in student loan debt and you’re going from a higher rate like six to eight percent, that’s going to be a huge amount in savings for you and that’s what this goal is for helping you save as much as possible.
So that’s what I want to talk about, I hope this article does help out those who are in a situation, where they need to address their student loan situation. Thank you for reading, take care and have a good day.