If you had to take out expensive student loans in order to pay for college, Connext student loan refinancing is an option that you should consider to help get your student debt under control.
By choosing to refinance your student loans through Connext, you could get a lower interest rate, a lower monthly payment, or even both—making repaying your college debt a lot easier.
Quick look: Connext student loan refinancing
While that might be good for the big banks, it limits customer choices, ultimately reducing the bargaining power of the borrower.
Connext (powered by ReliaMax) is different in that it helps to connect borrowers with smaller regional banks and alternative lenders. That way, Connext helps to increase competition in the student loan marketplace, ultimately making it easier for borrowers to find the student loan that is right for them.
Pros and cons of Connext student loan refinancing
Working with any lender or refinancer brings with it certain advantages and disadvantages, and working with Connext to refinance your student loans is no different.
Prospective borrowers should familiarize themselves with the benefits and drawbacks of refinancing their student loans through Connext before submitting an application.
Connext offers its borrowers:
- The option to patronize community and regional banks: By working with smaller community and regional banks and alternative student loan lenders, Connext may be able to help borrowers snag lower interest rates and better loan repayment terms than larger, more traditional lenders may be able to offer
- Options for undergraduate and graduate students: Whether you have earned an undergraduate or graduate degree, Connext can help you refinance your student loans
- Zero origination fees: Connext student loan refinancing does not include origination or disbursement fees
- Competitive interest rates: Though higher than the interest rates offered by most federal student loans, student loans refinanced through Connext have interest rates that are competitive in the private student loan market.
- Autopay discount: Borrowers may be able to reduce their interest rate by up to .25% by signing up for autopay
- Multiple repayment terms: Borrowers can choose between a 5, 10, 15, or 20-year repayment term for variable-rate loans, and between a 5, 10, or 15-year term for fixed-rate loans
- No early repayment fees: You will not be charged a fee if you pay off your student loan ahead of schedule
- Cosigner release: Undergraduate student borrowers who apply with a cosigner can release their cosigner after making 36 consecutive on-time payments (principal and interest), so long as they meet the eligibility requirements of the loan program on their own
- Option to consolidate federal and private student loans: Borrowers with both federal and private student loans can consolidate all of their loans into a single loan through Connext, which may make it easier to stay on top of payments
Consider the following before refinancing with Connext:
- Students without a cosigner may be denied: Student borrowers with a limited credit history who do not have access to a cosigner may not be approved for student loan refinancing through Connext. If they are approved, they may only be so with a higher interest rate
- Refinancing federal student loans comes with a cost: Though borrowers can refinance their federal student loans through Connext, and even consolidate them with private student loans into a single loan, doing so means giving up a number of benefits that borrowers with federal student loans can take advantage of, like deferment and certain student loan forgiveness options. That being said, Connext does offer a variety of forbearance and repayment options for borrowers going through difficult times
- It can be difficult to find all of the information you need about refinancing your student loans: Though Connext answers most of the questions you will have about the student loan refinancing process on their FAQs page, the website could do a better job of presenting all relative information up front to prospective borrowers. You may need to do a bit of digging to find information about specific eligibility requirements, for example
Connext eligibility requirements
As a private lender of student loans, Connext has broad discretion when it comes to selecting the borrowers that it agrees to work with.
To qualify for Connext student loan refinancing, you must:
- Be a US citizen or permanent resident
- Be at least 18 years old
- Have graduated from an eligible educational institution
- Have good credit, or a qualified cosigner with good credit
- Be able to provide employment verification and a verifiable income of at least $35,000
How to apply for Connext student loan refinancing
When it comes to actually applying for student loan refinancing through Connext, here are the general steps:
- You’ll apply through their online portal which is powered by First Dakota National Bank
- Connext will determine if you’re eligible by asking you a few basic questions, including what state you attended college in, the specific school that you attended, your citizenship status, and more (see below)
- If you are eligible, you’ll need to fill in a longer application, and submit a number of documents
- Once you have submitted this formal application, a hard credit inquiry (also called a “hard pull”) will take place, to determine your creditworthiness
Be prepared with your documents
You can make the process a lot smoother by having the following information and documentation on hand before you begin the application process. If you’re applying with a cosigner, they will also need to supply this documentation:
- Personal information, including name, address, phone number, email address, date of birth, and Social Security number
- Proof of income:
- If you are employed, this may be in the form of a recent pay stub from your employer
- If you are self-employed or retired, you will need to demonstrate proof of income in the form of your prior year’s tax return
- If you receive other income (such as alimony or child support) you will need to demonstrate that this is continuous and reliable
- Housing status and payment amounts (in the form of a rent or mortgage bill)
- A valid state ID such as a driver’s license
- Name and contact information for the school from which you graduated
- The date that you graduated
- Student loan payoff information from your student loan servicer, including total payoff amounts
- Contact information for one personal or professional reference
Connext interest rates and fees
One of the great things about refinancing your student loans through Connext is that there are absolutely no origination fees, which can be expected from some other lenders. This means that you may be able to refinance your student loans without adding to your debt burden.
Interest rates for student loans refinanced through Connext vary according to a number of factors, including:
- Your credit score
- Whether or not you are applying with a cosigner (and if so, your cosigner’s credit score)
- The length of the loan
- Whether the loan has a fixed or variable interest rate
Connext student loan refinancing limits
Students interested in refinancing their student loans through Connext can refinance up to $250,000 in student loans. You must be refinancing at least $10,000 in student loans to qualify for student loan refinancing through Connext.
Connext private loans
In addition to offering student loan refinancing to college graduates, Connext also originates new student loans for undergraduate and graduate borrowers who are still in school. Borrowers may choose between a 10-year or 15-year repayment term with either a variable or fixed interest rate.
Eligibility requirements for new loans through Connext are the same as for student loan refinancing.
Maximum Loan Amounts
Students borrowing news loans originated through Connext may qualify for student loans up to the annual cost of attendance, minus other financial aid received, up to an aggregate limit of:
- $100,000 for an undergraduate degree
- $150,000 for a graduate degree
- $200,000 for an MBA or Law degree
- $250,000 for a Medical or Pharmacy degree
College graduates looking to change the interest rate or monthly payment on their student loans may find a valuable partner in Connext. Also, if you prefer to work with smaller community and regional banks and lenders, then they might be be a good option for you.
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