Can I refinance my student loan without a cosigner?
If you’re an international student graduate living and working in the U.S., you know how discouraging it can be to be tied to a home-country student loan that no longer serves your goals.
If your parents cosigned your loans, or if family property is tied up in your student loans as collateral, you may be looking for a way to release them. Luckily, when you refinance your student loans with MPOWER Financing, you’re able to release your cosigner and collateral, granting your parents greater security and protecting your family’s assets.
Are you eager for financial independence? Read on to discover the many benefits of refinancing with MPOWER and see if you are eligible.
What is student loan refinancing?
Student loan refinancing means exchanging your current loan for a new one. Your new loan provider will pay off your old loan for you, and you’ll start making payments to your new lender instead.
When you refinance, you can choose a new loan with terms that work better for you. For instance, let’s say you borrowed a student loan from your home country to attend college or graduate school in the U.S. That loan may have high, fluctuating interest rates and costly monthly payments that make it hard to manage U.S. living expenses. Plus, if you’re living and working in the U.S. after graduation, making payments to a lender from your home country isn’t helping you build credit in the U.S..
When you refinance, you can choose a new loan with a lower, fixed interest rate that won’t change over time, making your monthly payments lower, inflation proof and more predictable. Plus, if you refinance with a U.S. lender, timely monthly payments will help you build a strong credit history in the U.S., which can help you achieve other financial goals down the line, such as buying a house.
Can you release your cosigner when you refinance your student loans?
Unfortunately, many refinancing providers do not allow international applicants to refinance their home country education loans. Additionally, they may look for an established U.S. credit history, which can be unrealistic if you’ve only lived in the U.S. for a short time.
If you’re a graduate who’s working full time in the U.S. and supporting yourself, it can be frustrating to run into these roadblocks. You have the means to pay back your loans on your own – why should you have to continue to burden your cosigner with your student loan debt?
MPOWER Financing understands your desire to be financially free and self-supporting. That’s why refinancing student loans through MPOWER gives you the opportunity to release any cosigner or collateral you have attached to your current loan. If your parents signed on to your home-country loan, for instance, you can release them from the obligation and assume full responsibility for your education loans yourself.
You can qualify for MPOWER refinancing by meeting the following eligibility requirements:
- You live in the U.S. and have been working full time in the U.S. for at least three months after graduation.
- You have twelve months or more of work authorization.
- You have a valid H1-B visa, F-1 visa while on OPT, or are a U.S. citizen, refugee or asylum seeker
Five benefits of refinancing your student loan with MPOWER
Refinancing can have a number of benefits for borrowers. Here are potential pros of refinancing your student loan debt with MPOWER:
- Reduce your interest rate: One major benefit of refinancing is the potential to lower your interest rate. Lowering your rate can lessen your monthly payments, making your month-to-month expenses more manageable. Plus, a lower interest rate can help you reduce the overall cost of your loan.
Refinance with MPOWER to lock in interest rates as low as 9.99% (11.52% APR).
- Switch to a fixed rate: Variable rates can be risky – you never know whether they will go up or down. Refinancing with MPOWER allows you to switch to a competitive, inflation-proof, fixed rate that won’t change over the life of your loan, providing you predictability.
- Release your cosigner or collateral: If you borrowed your original loan with a cosigner, such as a parent, or an asset as collateral, you can release both from your debt and assume the new refinanced loan in your own name.
- Make your loan eligible for employer assistance: Some companies offer student loan assistance benefits to employees. That could mean thousands of dollars toward your loans, helping you get out of debt faster. But your home-country loan may not qualify unless you refinance it with a U.S.-based lender first. When you refinance with MPOWER, you could get up to US$5,250/year in loan assistance from your employer.
- Build U.S. credit: When you make timely monthly payments to a U.S.-based loan provider like MPOWER Financing, those payments help you build a positive credit history in the U.S. A good credit score can help you secure loans to buy a house, access certain employment opportunities and more.
Only MPOWER can refinance Indian education loans
Currently, MPOWER is the only lender offering to refinance Indian education loans for those living in the U.S. If you’re an international student from India who wants to save money now and build a future in the U.S., MPOWER can help you refinance your home-country loans. Gain the opportunity to build U.S. credit, access employer matching programs and release your cosigner and collateral, all while enjoying MPOWER’s low, fixed interest rates.
Discover all the benefits of refinancing with MPOWER and confirm your eligibility today.
