February 3, 2022

Can I Refinance My Mohela Student Loan?

Repayment

Like with any student loan, one option to consider is the possibility of lowering payments. Refinancing is one of the main ways to save money each month and for the loan's lifetime. Loan servicers have this option available, and MOHELA is no exception. The process is easy and will only require around half-hour of your time.

The path to refinance MOHELA student loans is simple. Research the different lenders to find what terms work best for you. After choosing one, you’ll apply for refinancing, submit the requirements and then wait.

How Does Refinancing Work?

Student loan refinancing is essentially applying for a new loan. The lender purchases the old loans and provides you with new terms that are better than the last. Often, people do this with new lenders to take advantage of their offerings. The rates you’ll receive will depend on several factors, including:

  • Your payment history
  • Current credit score
  • Income
  • Federal interest rates

Most of the time, borrowers have better income, good payment history, and a higher credit score because of the payments they made on the previous loan. Because of that, they could capitalize on lower interest rates, making paying off the loan a lighter load on them.

If you have a federal loan and you’re refinancing to a private lender, you might lose several benefits. You will no longer qualify for loan forgiveness or income-based repayment. It’s best to consider your options before deciding.

The Benefits of Refinancing

The main reason people choose to refinance student loans is that it can reduce loan rates. That means savings, giving you more financial freedom, and reducing your payments over the loan’s life. Better payment options usually happen because the interest rate is low or there is a change in the repayment terms. Refinancing also provides a few more benefits:

  • You can remove a cosigner from the student loan. That way, the borrower can have full responsibility and not pressure someone else like a parent.
  • A refinancing option allows a borrower to combine multiple loans. That way you’ll only need to think and pay one fee in the one new loan.
  • You can switch to a new lender. That means you’ll have more options when it comes to the perks they offer. You may also want to change if another lender has better customer service.

Other Considerations

Refinancing is a solid option if you're in the private sector. Most loan forgiveness plans set by the federal government do not apply to those working there.

It’s also prudent to have your finances prepared for the move. Ideally, you should already have an emergency fund ready to pay if the unexpected occurs. For example, if you suddenly lose your job, you’ll still have many months of payments you can give so that your credit score won’t take a hit.

Aside from that, always check your debt-to-income ratio. The lower it is, the better your chances of staying diligent with payments over time. It won’t be long before you pay off the loan if you have prepared in advance.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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