What is Student Loan Refinance?

Student loan refinancing replaces one or more existing federal or private student loans with a new loan from Truist Financial. The new loan typically carries a different interest rate, payment term, and monthly payment amount. Refinancing can consolidate multiple loans into a single monthly bill, potentially lowering the interest rate and reducing the overall cost of borrowing or shortening the repayment period.

Key Benefits

• Lower interest rates: Qualified borrowers may secure a lower fixed or variable rate, saving money over the life of the loan.
• Simplified payments: Combine multiple student loans into a single monthly payment for easier budgeting.
• Flexible terms: Choose repayment terms that match your financial goals, from shorter terms to lower rates to longer terms to reduce monthly payments.
• Customizable features: Options such as autopay discounts, cosigner release (subject to eligibility), and supplemental benefits may be available.
• Predictability: Fixed-rate loans offer stable monthly payments, while variable-rate options may offer lower initial rates for some borrowers.

Who Should Consider Refinancing?

Refinancing may be a good fit for borrowers who:

• Have steady income and improved credit since taking out the original loans.
• Want to lower monthly payments or the total interest paid.
• Prefer a single monthly payment instead of managing multiple loans.
• Do not require federal loan protections such as income-driven repayment, public service loan forgiveness, or deferment/forbearance options tied to federal loans.

Borrowers who rely on federal loan benefits should carefully evaluate the trade-offs before refinancing federal loans into a private loan.

Product Features and Options

• Fixed and Variable Rates: Choose a fixed rate for payment stability or a variable rate for potentially lower initial interest costs.
• Multiple Term Lengths: Select from a range of term lengths to balance monthly affordability and total interest paid.
• Autopay Discount: Enroll in automatic payments to receive a rate discount if offered.
• Cosigner Release: For loans taken with a cosigner, a release option may be available after meeting specific payment history and credit criteria.
• Loan Consolidation: Refinance multiple loans into a single Truist loan for streamlined management.
• Online Account Management: Manage payments, check balances, and set up notifications through a secure online portal.

Eligibility and Requirements

Eligibility for refinancing generally depends on factors such as credit history, income, employment status, and the amount of existing student loan debt. Typical requirements include:

• Steady employment or reliable income documentation.
• Acceptable credit score and credit history.
• Sufficient income relative to monthly debt obligations.
• Documentation for existing student loans to be refinanced.

Specific underwriting criteria and documentation requirements will be outlined during the application process.

How the Refinancing Process Works

1. Prequalification: Check potential rates and terms with a soft credit inquiry that does not affect your credit score.
2. Application: Submit a full application and provide required documentation, including proof of income and details of current student loans.
3. Underwriting: Truist reviews your application, verifies information, and determines eligibility and final terms.
4. Loan Approval and Closing: If approved, review and accept the loan agreement. The new loan pays off your existing student loans.
5. Repayment: Begin making payments under the new loan terms, with options for autopay and online account management.

Savings Example

Consider a borrower with multiple loans carrying higher average rates. By refinancing to a lower rate or extending the term strategically, the borrower may reduce monthly payments or shorten the repayment period to save on interest. Exact savings depend on the borrower’s current rates, new rate, chosen term, and any fees. Prospective borrowers should compare the total cost of the new loan with the remaining balance and repayment schedule of current loans to make an informed decision.

Common Questions

Will refinancing affect my federal loan benefits?

Refinancing federal loans into a private loan will generally eliminate federal loan protections and eligibility for federal programs. Review the implications carefully before refinancing federal debt.

Can I refinance if I have a cosigner?

Yes, many borrowers refinance with a cosigner to qualify for better rates. Cosigner release may be available later if the borrower meets specified conditions.

How long does approval take?

Approval timelines vary depending on documentation and underwriting. Some borrowers receive decisions quickly after submitting a complete application, while others may experience longer review periods if additional information is needed.

Why Choose Truist?

Truist Financial combines personalized service with a range of refinancing options and digital tools to support borrowers throughout repayment. The institution focuses on providing flexible choices, competitive pricing for qualified borrowers, and straightforward account management. Truist aims to help borrowers align loan terms with personal financial goals, offering guidance and resources to make refinancing decisions with confidence.