At a Glance:
People looking for student loan refinancing options might want to consider a newer company―Splash Financial. With the help of technology, you can learn about potential interest rates in under three minutes. Both federal and private student loans can be refinanced through Splash Financial.
Splash Financial started in 2013 as a way to help graduates and medical residents who were struggling with medical student loan debt, which can feel like a crushing burden to those just starting out in their career. Since then, the company has expanded to focus its services to all graduates and not just medical school graduates.
The company has a mission of helping graduates manage their student loans―giving them more options and freedom so they can create a splash in their world instead of being overly-burdened by debt. This Splash Financial review will take a closer look at the company and what it offers regarding student loan refinancing.
Splash Financial Overview
Splash Financial offers student loan refinance options for federal loans and private student loans. Refinancing with Splash might help decrease your interest rate or your monthly payment. Having a lower monthly payment is crucial for some graduates who may make career choices based solely upon their income, or for those who may need additional extra money each month for other expenses such as car payments or housing.
SplashFinancial.com's refinancing might be a good choice for someone who has multiple student loans due each month to a variety of lenders. Managing so many loans can be challenging because you have to remember the different amounts you have to send out and all the varying due dates. That can be overwhelming for busy graduates who have multiple loans, and you don’t want to miss a payment because you forget to send one out. That can affect your credit score or rack up late fees.
Splash Financial Interest Rates, Terms & Fees
Splash Financial currently offers fixed annual percentage rates of 3.75 percent to 7.03 percent. That amount will fluctuate depending upon whether a person has a cosigner, their loan term, and what type of degree they have. For a five-year loan repayment term, the lowest APR Splash offers is 3.75 percent, while a 4.26 percent APR is the lowest for an eight-year loan. For a 12-year loan, the lowest APR is 4.69 percent, and for a 15-year loan, the lowest APR you can get is 4.91 percent.
The company also offers variable rate loans, with a maximum variable rate on a refinance at 9 percent for five-year or eight-year loans. The maximum variable rate loan for 12-year and 15-year terms is 10 percent.
Loans range from $7,500 to $300,000. When applying for a loan with Splash, you won’t have pre-payment penalties, or application and origination fees.
Splash Financial doesn’t ask for a Social Security number until after you’ve chosen the rate for your loan. That means checking into a refinancing option won’t hurt your credit score. They’ll use a soft credit pull for the initial inquiry, and they’ll only ask for your full credit report once you’ve decided to proceed with the refinance loan application.
Applying for Refinancing With Splash Financial
While borrowers can refinance student loans through their own credit score, it can benefit you to have a cosigner. Having one improves your chances of being accepted. Cosigners can be released from the loans after the borrower has made one year of on-time payments―but the payments must be consecutive.
To help determine if you should look for a cosigner, Splash gives you additional information. If you’re seeking a loan up to $150,000, you’ll have to have a cosigner if you have a credit score between 670 and 699 and an annual income in the $25,000 to $41,999 range. To qualify as a cosigner, a person has to make at least $42,000 per year and have at least a 720 for their credit score.
If the loan is more than $150,000, you’ll have to have a cosigner if your credit score is under 725 and your income is under $50,0000. Your cosigner will have to earn a minimum of $50,000 per year and have a credit score of at least 725.
Pros and Cons of Splash Financial
As with any lender, there are good and bad aspects of going with Splash Financial.
- No prepayment penalties.
- There is a cosigner release option if you meet the requirements.
- The loans you can take out are sizable―up to $300,000, which is nice for students doing more than four years of college.
- While the lowest rates are a good deal, the higher end of the interest rates available through Splash is rather high. If you only qualify for the higher interest rates, you may want to keep looking elsewhere.
- If you have federal loans, private refinancing can cause you to lose certain protections such as income-driven repayment plans is the ability to participate in loan forgiveness programs
- They are a newer company, which may make some people nervous.
Splash Financial can be a solid option for anyone’s student loan refinancing needs. Whether you want to proceed with a loan through Splash is largely dependent upon the rate you’re quoted though. You may want to keep searching for another refinancing option if you’re looking at the higher interest rates.
Author: Shannon Serpette
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