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According to Nationwide’s website, the company has decided to “transition away from full-service retail banking” and will no longer accept new student loan refinance applications. The information below regarding Nationwide’s student loan refinance product will no longer be accurate. (Read More)
Compare student loan refinance companies to find an option that meets your needs.
Student loan borrowers have several options when it comes to refinancing with private lenders. One leading provider of private student loan refinancing is Nationwide Bank, part of Nationwide Mutual Insurance Company. In partnership with College Ave, Nationwide offers eligible borrowers the opportunity to refinance current federal or private student loans directly through the College Ave application process.
Nationwide student loans come with several advantages as well as factors to consider for student loan borrowers. Let’s start with an overview of the qualification requirements for new borrowers.
Getting a Loan Through Nationwide Student Loan Refinancing
Nationwide partnered with College Ave Student Loans to provide a wide range of refinancing options for borrowers who qualify. In order to successfully refinance student loans with Nationwide, borrowers need to have a strong credit history and stable income from employment at the time an application is submitted. If a student borrower does not have these qualifications on their own, a cosigner may be added to an application to improve chances of approval.
Through College Ave, borrowers can use the free credit prequalification tool that gives an overview of whether their credit score qualifies for a loan individually or with a cosigner. Both borrowers and cosigners are required to be U.S. citizens or permanent residents, and they must meet minimum income requirements to qualify.
Basic Information: Rates, Terms, Fees, and Limits
Nationwide student loan refinancing offers borrowers several options for interest rates and repayment terms. Interest rates for refinancing are either variable or fixed, with variable rates ranging from 3.00% to 7.50%, and fixed rates between 3.50% and 8.00%.
Refinanced student loans may also be structured as interest-only repayment, which only requires interest payments for the first two years after the loan is funded, after which time full interest and principal payments begin. Borrowers may also opt for standard repayment, which requires full principal and interest payments each month from the start of the loan. Nationwide student loans have repayment terms ranging from five to 15 years, which is shorter than other private student loan lenders.
There are no application fees with Nationwide, nor are there prepayment penalties. The maximum loan amount which may be refinanced cannot exceed $150,000, although approval is highly dependent on the borrower’s credit history and income.
Nationwide offers a 0.25% interest rate discount for establishing automatic payments from a checking or savings account. Borrowers who set up automatic payments from a Nationwide checking or savings account may receive an additional 0.25% interest rate reduction.
Another benefit to student loan borrowers is the ability to prequalify for a refinance based on credit history and income, without impacting their credit score. Nationwide also offers a variety of educational resources online, through College Ave, which gives borrowers and cosigners a vast amount of information on student loans and financial management topics.
Nationwide student loans can be advantageous to some borrowers, but there are factors to consider when selecting this lender for a new refinanced loan. First, the credit requirements are not specifically listed on either Nationwide or College Ave’s websites, citing proprietary calculations for loan approval. This can make it a challenge to know what a borrower may be eligible for in terms of a new loan, its interest rate, and if a cosigner is required or not.
Secondly, there are minimum income requirements in place with Nationwide, although the income amount is not readily available. Borrowers who have recently graduated may not qualify for a refinanced student loan alone.
When a cosigner is used to qualify for a Nationwide student loan refinance, it is important for borrowers to recognize that a cosigner release may not be requested until at least half of the loan balance is repaid. Also, borrowers must have made at least 24 months of consecutive payments before a cosigner release will be accepted.
Nationwide in partnership with College Ave Student Loans may be beneficial to borrowers who are comfortable with a shorter repayment term and can qualify based on credit history and income. The benefits of using Nationwide as a private loan refinance option are better than other private lenders, particularly with the total 0.50% interest rate reduction and future cosigner release.
However, the credit qualifications for the lender are stringent, leaving some borrowers ineligible. Here’s a look at what else Nationwide offers for student loan refinancing:
- Up to $150,000 borrowing potential
- The ability to add a cosigner
- Interest rates either variable or fixed
- Repayment terms ranging from five to 15 years
- Interest-only repayment or principal and interest repayment
- Loan amounts as low as $5,000
- Interest rate discount of 0.50% with Nationwide checking or savings automatic payments
- Credit decision in as little as three minutes through College Ave
Author: Melissa Horton