Can You Refinance Student Loans With Chase Bank?
If you're thinking about refinancing your student loans with Chase, this article will break down what you need to know.
If you’re wondering if you can refinance your student loans with Chase, the short answer is no. However, you can refinance student loans you already have with Chase to a different bank, credit union or online lender.
When refinancing, consider the pros and cons of your decision to see what’s best for your financial needs. Most likely, you’ll receive a massive benefit from refinancing your Chase student loans, especially if you can qualify for a much lower interest rate.
Reasons to Refinance Your Chase Student Loans
There are several reasons you should consider refinancing your Chase student loans. Since refinancing student loans typically doesn’t come with upfront costs, you may be able to snag a better rate. Of course, there are other reasons, including getting better repayment terms and working with a better company overall.
The main reason most borrowers refinance their private student loans is to save money on interest charges. By finding a lower interest rate, you’ll be able to lower the amount you’ll pay overall on your loan in addition to decreasing your monthly payments.
For instance, you have a $40,000 student loan at a 10% interest rate, and you have 12 years left to pay it off with Chase. Your monthly payments are about $478.03 each month, and overall, you’ll pay $68,836.32, including interest.
If you decide to refinance your student loan to a 5% interest rate, your monthly payments will go down to $369.96 per month, and you’ll pay $53,274.24 overall, meaning you’ll save $15,562.08 throughout the lifetime of your loan.
Better Repayment Terms
In addition to a lower interest rate, another benefit to refinancing is that you might be able to change your repayment terms. Doing so can help you better manage your loans.
For one, if you have multiple private student loans, you can consolidate them (including the one through Chase) and refinance them into a single new student loan. That way, all you have to worry about is one payment. When doing your research, keep in mind that some lenders use the terms “consolidate” and “refinance” interchangeably.
Another benefit of changing your repayment terms is decreasing your monthly payments to better fit your budget. Sure, you can lower your interest rate, but extending your repayment term could reduce your monthly payments even more. Paying less each month could give you more breathing room to help you pay for essentials or put money toward other types of debt payments. But remember that if you choose to extend your repayment term, you’ll most likely pay more, as interest will accrue for longer.
You also could refinance to a shorter term. That way, you can save money in interest and pay off your loan much more quickly. If you can afford your current Chase loan payment, consider putting the amount you’ll save with your new loan toward extra payments. Check to see whether your lender charges prepayment penalties before doing so.
Working With a Different Lender
Sometimes, refinancing is simply a matter of you not being happy with your current lender. In that case, refinancing makes sense if you want access to different repayment options or better customer service. Granted, that may not be the best reason to switch, especially if it means you won’t save money or get a better repayment term.
However, a compelling reason would be to release a co-signer if your current lender doesn’t have that option available. You may even be able to get other perks such as sign-up bonuses and career coaching.
How to Refinance Student Loans With Chase
The good news is that if you have private student loans through Chase, you’ll be able to refinance them with lenders that dish out student loans. Before getting prequalified, you want to see whether your financial situation allows you to qualify for the best rates possible.
In most cases, private student loan lenders approve borrowers with a good credit score — you’ll want yours to be at least in the high 600s, but the higher, the better. Lenders also want to see that you have a steady income stream and a good debt-to-income ratio. This ratio, also called DTI, shows how much of your income goes toward your debt payments. The lower this percentage is, the better. Most lenders want your DTI to be less than 50%.
There may also be additional requirements, such as you being a college graduate, but check with the lender to see what documentation you’ll need to provide. Shop around with different lenders to determine which one has the best refinancing rates and terms. Juno helps you do the heavy lifting by negotiating on behalf of borrowers with partner lenders to get the best rates and terms, so consider becoming a member for free.
What if My Chase Student Loan Was From Before 2010?
If you have Chase student loans from before 2010, then they may be federal loans. Check your account on the Federal Student Aid website to see if it’s listed there. If so, they are federal loans.
You can still refinance your federal Chase student loans, but you will lose federal benefits such as income-driven repayment plans by going with a private student loan lender.
If your goal is to simplify your payments, you can consolidate all your federal student loans into one. Doing so won’t lower your interest rate, but you may still qualify for programs such as Public Service Loan Forgiveness.
If your goal is to lower your interest rates, you can consider refinancing with a private student loan lender. You will lose federal benefits, but you may be able to pay off your loan faster and save thousands of dollars in interest payments.
Is It Possible To Refinance My Student Loan With Chase?
Chase Bank used to offer both federal and private student loans. Until 2013, Chase offered private student loans and also allowed refinancing. In 2017, it sold off the remainder of the loans in its portfolio to Navient, another student loan servicer. If you want to refinance your student loan with Chase now, you won’t be able to do so.
Sarah Li Cain
Sarah Li Cain is a finance writer and a candidate for the Accredited Financial Counselor designation whose work has appeared in places like Bankrate, Business Insider, Financial Planning Association, Investopedia, Kiplinger, and Redbook. She’s the host of Beyond The Dollar, where she and her guests have deep and honest conversations about money affects their well-being.
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