How to Refinance MOHELA Student Loans

By Mentor Staff | Edited By Mentor Staff

Updated On October 21, 2022

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If you want to know how to refinance MOHELA student loans, this complete guide to student loan refinancing will help you to refinance MOHELA student loans.

MOHELA is a major student loan servicer for both federal student loans and private student loans. The U.S. Department of Education selected MOHELA as the exclusive student loan servicer for public service loan forgiveness.

Top Picks For Student Loan Refinancing

December 2022

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.
Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.
APR
4.49% - 8.99%
4.49% - 8.99%
4.49% - 8.99%

View Details

on SoFi's website

Overview

Variable APR:
4.49% - 8.99%
Fixed APR:
4.49% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on Earnest's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on NaviRefi's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,001 ($10,001 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.53% - 7.24%
4.48% - 7.29%
3.53% - 7.29%

View Details

on ELFI's website

Overview

Variable APR:
3.53% - 7.24%
Fixed APR:
4.48% - 7.29%
Minimum Credit Score:
680
Minimum Income:
$35,000
Fees:
None
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 8.65%
3.99% - 8.49%
2.50% - 8.65%

View Details

on Splash's website

Overview

Variable APR:
2.50% - 8.65%
Fixed APR:
3.99% - 8.49%
Minimum Credit Score:
640
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5 – 25 years
Borrower Residency:
All states
Hardship Deferment:
Varies
Co-signer Option:
No
5.09% - 11.67%
5.39% - 11.87%
5.09% - 11.87%

View Details

on Citizens' website

Overview

Variable APR:
5.09% - 11.67%
Fixed APR:
5.39% - 11.87%
Minimum Credit Score:
Not disclosed
Minimum Income:
$24,000
Fees:
No prepayment or origination fees
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 6.80%
4.49% - 6.90%
2.50% - 6.90%

View Details

on Laurel Road's website

Overview

Variable APR:
2.50% - 6.80%
Fixed APR:
4.49% - 6.90%
Minimum Credit Score:
660
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.27% - 6.87%
3.99% - 10.68%
3.27% - 10.68%

View Details

on LendKey's website

Overview

Variable APR:
3.27% - 6.87%
Fixed APR:
3.99% - 10.68%
Minimum Credit Score:
680
Minimum Income:
$24,000
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except ME, ND, NV, RI, WV
Hardship Deferment:
Yes
Co-signer Option:
Yes
-
3.94% - 9.08%
3.94% - 9.08%

View Details

on ISL's website

Overview

Variable APR:
-
Fixed APR:
3.94% - 9.08%
Minimum Credit Score:
670
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except OR and ME
Hardship Deferment:
Yes
Co-signer Option:
Yes

You may be asking: “What should I do with my MOHELA student loans?” Some student loan borrowers may decide to keep their student loans with MOHELA until they pay off their student loan debt. However, other student loan borrowers could choose to refinance their MOHELA student loans. Which option is best for you?

In this ultimate guide to refinance MOHELA student loans, you will learn:

How To Refinance MOHELA Student Loans

Student loan refinancing helps you to get a lower interest rate, lower student loan payment or both for your student loans. Through student loan refinancing, you can refinance federal student loans from the U.S. Department of Education or refinance private student loans from MOHELA.

If you have MOHELA student loans, you can refinance student loans with a private lender. For example, you could refinance with top private lenders, such as SoFi. When you refinance student loans, you combine your existing student loans into a single student loan with one monthly payment and one student loan servicer.

Student loan refinancing also simplifies student loan repayment, since you only have to make one payment each month. The top reason to refinance student loans is to lower your interest rate, save money and pay off student loans faster.

If you want to know how to refinance MOHELA student loans, the process is simple and can be completed online. Lenders will evaluate your credit score, income, debt-to-income ratio and other factors to ensure that you are a responsible student loan borrower.

Typically, lenders prefer to refinance student loans for borrowers who have at least a credit score of 650, current employment or a written job offer, stable and recurring income, and a low debt-to-income ratio, among other factors. If you do not meet these qualifications, you can apply with a qualified co-signer.

Why You Should Refinance MOHELA Student Loans

There are several reasons why you should refinance MOHELA student loans. The main reasons are to:

  1. Save money
  2. Change student loan terms
  3. Change your lender or student loan servicer

Save money

The main reason to refinance MOHELA student loans is to save money. With a lower interest rate, you can save money on your student loans and pay off student loans fast. You can compare the best student loan refinancing rates online.

You can use this student loan refinancing calculator to determine how much money you can save when you refinance MOHELA student loans.

For example, let’s assume you have $100,000 of student loans at a 7% interest rate and a 10-year repayment term. Now, let’s assume you can refinance student loans at a 3% interest rate and a 10-year repayment term. With student loan refinancing, you could save $195 each month and save $23,457 total.

Change your student loan terms

Student loan refinancing also helps you change your student loan terms. If you refinance MOHELA student loans, you can choose either a new fixed interest rate or variable interest rate.

You should only refinance MOHELA student loans if you can get a lower interest rate. You can keep refinancing your student loans because there is no limit to how often you refinance student loans. Since there are no origination fees or prepayment penalties, you can refinance student loans each time you find a lower interest rate.

When you refinance student loans, you can also choose a new student loan repayment term, which typically ranges from 5 to 20 years. For example, a shorter repayment period (such as 5 years) has a higher monthly payment, but it will save you money since you will pay less interest.

In contrast, a longer repayment period (such as 20 years) will have a lower monthly payment, but ultimately cost you more in interest payments. You should choose the student loan repayment period that best fits your personal financial situation and goals.

Change your lender or student loan servicer

When you refinance student loans, you can change your student loan servicer. For example, if you’re unhappy with MOHELA, for example, student loan refinancing could help you to get a new student loan servicer that can deliver better customer service.

When Student Loan Refinancing Isn't Right For You

Whether you should refinance MOHELA student loans depends if you have federal student loans or private student loans.

If you have private student loans, and can find a lower interest rate, student loan refinancing is a good way to save money and simplify student loan repayment. When you refinance private student loans, there is no impact to student loan forgiveness or income-driven repayment plans, for example, because those are benefits for federal student loans only.

If you have federal student loans, you should balance the potential cost savings from student loan refinancing with the loss of federal benefits such as income-driven repayment plans and student loan forgiveness for MOHELA student loans.

For example, if you plan to enroll in the Public Service Loan Forgiveness program, you must keep your federal student loans outstanding and should not refinance federal student loans.

However, you can still refinance private student loans. If you feel confident in your earning potential and ability to repay student loans, then student loan refinancing for both federal and private student loans is a smart tool. That said, if you plan to use income-driven repayment or certain federal student loan forgiveness programs, refinancing private student loans only may be a better option.

Should You Refinance Your MOHELA Loans?

You may wonder, “Should you refinance your private student loans?

When it comes to whether you should refinance MOHELA student loans, make sure you understand your options. For example, with student loan refinancing, you can lower your interest rate, save money and pay off student loans more quickly.

Therefore, there are at least three good reasons to refinance student loans:

  1. get a lower interest rate,
  2. lower your monthly payment, or
  3. change your student loan terms.

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