(This is different from federal student loans, where the interest rate is the same for every borrower and a credit check is usually not required.) The lender may also review your employment background, your cosigner’s (if there is one) financial history, and your history of meeting financial obligations, among other things.
The lender will evaluate how risky it would be to offer you a loan, and then set the rate accordingly.
The main benefits to refinancing student loans can include the following.The interest rate on a private refinance loan is ordinarily based on creditworthiness, with your credit score being the main factor.This means that if your score has gone up since you first obtained your private student loans, you might be able to get a lower rate by refinancing with a private lender.Some private lenders offer certain forms of relief to borrowers who are struggling to make their student loan payments (such as forbearance plans, repayment assistance, and other relief), but these options are available at the sole discretion of the lender. If you don’t know whether your student loans are private or federal: Each private lender has different criteria.Most lenders require the borrower to be a citizen of the United States (or a legal resident), and to meet certain credit, employment, education, and income requirements.