When you refinance a student loan, you take out a new loan to pay off your old one. Borrowers frequently refinance to benefit from cheaper interest rates.
Dealing with so much debt and paying off student loan interest may be exhausting. This is the time to think about refinancing your student debt.
Half of all graduates in Washington owe an average of $33,500 in student loan debt.
In this post, we’ll talk about Washington student loan refinancing lenders, as well as forgiveness possibilities to make repayment more reasonable.
- Best 3 Washington Student Loan Refinance Options
- Student loan forgiveness for Washington residents
- Frequently Asked Questions
Best 3 Washington Student Loan Refinance Options
Compare all of your alternatives if you have student loan debt and want to refinance.
There are certain Washington student loan refinancing alternatives available to you that may provide cheaper rates:
1. Twin Star Credit Union
Twin Star Credit Union is a credit union, in collaboration with LendKey*, which offers a student debt refinancing loan with highly competitive fixed and variable rates.
Variable interest rates start at 1.99% APR, while fixed loan rates start at 2.95 % APR.
Our brand promise, “Realizing Financial Dreams Together,” was adopted in 2014. In only a few words, the short, basic statement expresses our whole strategic goal. We have the people, resources, and value systems in place to ensure that our members have not only a fantastic place in the bank but also a bright future. Because many other banking institutions cannot deliver the same experience, the guarantee gives TwinStar a competitive advantage.
Undergraduates can refinance up to $125,000, while graduates can refinance up to $175,000. After a year of on-time payments, you can apply for cosigner release if you apply with a cosigner. There are no origination costs, and the loan has adjustable payback periods.
If you aren’t currently a member of Twin Star credit union, you must join to qualify for the student debt refinancing loan.
2. Evergreen Direct Credit Union
Evergreen Direct Credit Union, founded in Washington, has teamed up with LendKey* to provide its members with a low-cost student loan refinancing option.
According to the credit union, the deal is one of the finest Washington student loan refinancing alternatives since it includes perks such as unemployment protection for 18 months (the longest period in the industry).
In addition, during the first 4 years of repayment, you can make interest-only payments, which is a tremendous benefit in these trying circumstances.
Washington citizens have the option of refinancing their student loans. Whether you used them for undergraduate or graduate school. If you pay off your loan early, you won’t be charged any fees or penalties.
You can pick between fixed and variable refinancing rates. There are also adjustable payback plans of 5, 7, 10, or 15 years available.
You may save 0.25% on your interest rate by signing up for automatic payments. After a year, the credit union provides a cosigner release option.
To begin, you may check your rate in less than 2 minutes to see whether you qualify without affecting your credit.
If you join the credit union and live in Washington, you will have access to a unique Washington student loan refinancing offer.
Another option to examine is CommonBond*.
It’s a lender to think about, even if it’s not specific to Washington citizens.
Interest rates on CommonBond might be fixed, variable, or hybrid.
A cosigner release is feasible, but only after 3 years, which is longer than the time frame for other Washington student loan refinancing choices.
If you need to stop paying on your student loans, you can request a deferment for up to 24 months. CommonBond is an excellent choice for six-figure borrowers and those with Parent PLUS Loans.
Student loan forgiveness for Washington residents
Student loan forgiveness, in addition to Washington student loan refinancing alternatives, can help you pay off your student debt faster.
For qualified Washington residents, here are a few loan forgiveness options:
Public Service Loan Forgiveness Program
Residents of Washington who have federal student loans can benefit from the Public Service Loan Forgiveness Program (PSLF).
PSLF is an excellent option to get all of your federal loans forgiven with no lingering tax penalty, even though it is not a Washington-specific program.
To qualify, you’ll need to work for the government for at least 10 years and make 120 student loan payments, among other things.
State Health Program and Behavioral Health Program
Loan forgiveness is available to health professionals throughout the state through the State Health Program (SHP) and the Behavioral Health Program (BHP).
Each program provides repayment help of up to $75,000, with awards not exceeding your student debt.
You’d have to commit to 3 years of service and work at least 24 hours per week (40 hours per week for full-time employment).
Nonprofit organizations and Health Professional Shortage Areas are both eligible for employment (HPSA).
Before providers can proceed with an application, they must first apply and be pre-approved. Visit the Washington Student Achievement Council’s website to learn more.
Federal Health Program
Health professionals could also pursue the Federal Health Program, in which federal monies match state dollars to provide up to $70,000 in grants.
A 2-year commitment is required, with 40 hours of labor each week.
This Washington student loan forgiveness option is accessible if you work in a Health Professional Shortage Area (HPSA) or for a charity. Before providers may apply for an award, they must first apply and be pre-approved, similar to the above.
Make sure you’re aware of the dangers of refinancing federal loans. If refinancing makes financial sense for you, it might be a wise decision.
Frequently Asked Questions
Marie got her journalism degree from the University of California and is an award-winning financial journalist, who’s responsible for collecting and analyzing information concerning students and young adults within the world of finance.
Marie has spent her career with more than 5 years writing for unique media outlets like Yahoo finance, GoBankingRates, and CNBC. She also teaches them how to plan strategically to get out of loan debts easily.
Her goal is to educate students about the different stages in life that involve finances so they can get their money’s worth.