Student loans are a huge business. There are currently $1.52 TRILLION in student loans.
It's so big that if you consolidate and refinance your loan today, companies will pay you hundreds of dollars. This is on top of the interest rate break you'll likely get as well as other perks of refinancing.
Back in 2005, when I consolidated my student loans, all I got was a 0.25% discount on my interest rate!
Today, companies will pay you hundreds of dollars.
Case in point – Credible will pay you $200 if you refinance your loan.
Now, cash back bonuses aren't everything. Banks and lenders know that there's a ton of competition out there so they have competitive rates too. I'm keeping tabs on a list of the richest cashback rebates and rewards you can get for refinancing your student loans.
Here's what you need to do:
- Compare rates for all (or most) of the options below,
- Then pick the one with the best mix of rate and bonus.
Here are the best of the best student loan refinance cashback offers:
Credible – $200
Bonus of $200 when you refinance your student loans with Credible!
Laurel Road – $200
Bonus of $200 when you refinance your student loans with Laurel Road!
SoFi – $100
Plus, they run private SoFi events for their members, offer career advice and counseling, and even have a wealth management arm. (SoFi is short for Social Finance!)
Bonus of $100 when you refinance your student loans with SoFi!
CommonBond – $100
They also follow a “one-for-one” social model like Toms Shoes where for every degree funded on the CommonBond site, they will fund the education of a student abroad for a full year through Pencils of Promise. They've also been active domestically, partnering with charter schools and financial literacy campaigns.
Bonus of $100 when you refinance your student loans with Laurel Road!
Elfi – $100
Bonus of $100 when you refinance your student loans with Elfi!
Rebates for Refinancing
The rebate you can get for refinancing or consolidating your loan should be the last piece of the puzzle.
Getting $500 today but paying a higher interest rate makes no sense. Be sure that the interest rate you get on the refinance, coupled with the other terms, makes financial sense before you make any decisions.
Also, refinance and consolidation are slightly different processes. With a refinancing, you are getting a new loan and using the proceeds to pay off old loans. You get new terms, new (lower) interest rates, and you can refinance federal and private loans.
With consolidation, you are combining your loans into a single loan. This is typically done with federal loans (you can do this with private loans too sometimes but it's not governed by federal rules) and your interest rates are the blended average of the loans being consolidated. This is typically done to simplify your life. Paying back one loan is logistically easier than paying off five.
With each of these, it's important to compare what benefits or advantages you may be surrendering. For example, the Public Service Loan Forgiveness Program is only available to Direct Loans. If you refinance a Direct Loan, you no longer have access to that program.
As you can see, there are a lot of moving parts and a cash rebate is just the final piece!