For Splash Financial, this partnership will enable it to expand beyond its medical fellows and residents niche to now offer extended options for college graduates interested in consolidating and refinancing their federal or private student loans. Eligible applicants will also be able to consolidate their loans into a single monthly payment at reduced rates.
“We’re excited to partner with the Splash Financial team and to grow PenFed’s existing presence in the student loan refinance market.” said Shashi Vohra, PenFed Executive Vice President, President of Affiliated Business. “Through this strategic partnership and additional marketing channel, we can expand the reach of PenFed’s great rates to more consumers.”
For PenFed, this partnership is one of many for the nation’s second-largest credit union. According to its website, PenFed has more than 1.6 million members with over $24 billion in assets across all 50 states, the District of Columbia, as well as in Guam, Okinawa, and Puerto Rico. The financial institution offers auto loans, checking and savings accounts, credit cards, loans, and mortgages.
Before taking the plunge into refinancing, experts suggest conducting research and considering some of these factors for student loan refinancing products.
Look for good rates: Review different lenders as interest rates per individual will vary. Lenders will allow potential customers to check rates through soft credit pulls. If a hard credit pull occurs, make sure all the comparison shopping takes place within a couple of weeks. Remember with refinancing, a variable rate does have the potential to go higher, resulting in larger payments.
Find flexible terms: Check with lenders to see if flexible payment options are available. A longer-term loan such as 10 years includes a lower monthly payment with higher interest, while a shorter-term loan, say five years, encompasses a higher monthly payment but lower interest. Ideally, a lender will offer the choices.
Ask about payment relief: Some lenders will offer options for situations from financial hardship such as losing a job. This can include placing loans temporarily on hold or adjusting payments. Ask lenders upfront about this option before you apply.
Author: Dave Rathmanner
As the VP of Content at LendEDU, Dave regularly plans and writes content to help consumers with their personal finances. Dave’s work has been featured in the Chicago Tribune, Bloomberg, CNBC, US News, Yahoo Finance, NPR, and more.