There are dozens of student loan refinancing companies out there, and it’s important to consider all your options. One company you should definitely check out is ISL Education Lending.
They’re a nonprofit organization that helps students get low-cost private loans to cover college expenses after exhausting other financial aid. In addition to lending money to students, ISL also offers a refinancing program called Reset Refinance Loan.
The Reset Refinance Loan is designed to achieve two main goals: 1) help borrowers simplify the repayment of their student loans, and 2) help borrowers lower their overall debt by offering lower fixed rates when refinancing student loans.
Here are 5 things you need to know about refinancing with ISL Education Lending.
Main Features of Reset Refinance Loan
- Students from all 50 states are eligible to apply for refinancing through Reset Refinance Loan.
- The minimum loan amount borrowers can refinance is $5,000; the maximum is $300,000.
- Reset Refinance Loan offers only a fixed rate option, with a minimum loan term of 5 years and a maximum of 20 years.
Only prospective borrowers who meet the following requirements qualify for refinancing with ISL Education Lending:
- Be a US citizen or a permanent resident of the US
- Be the age of majority in your state (which is 18 in most states)
- A minimum credit score of 670 (if you don’t meet this, you can refinance with a cosigner)
- 40% or less debt-to-income ratio
- Two or fewer accounts with 30-day delinquencies
- No delinquencies of 60 days or more on any credit account over the previous two years
- Have no charge-offs, defaults, tax liens, wage garnishments, repossessions, or foreclosures
- No previous bankruptcies
ISL Education Lending commits to keeping costs low for borrowers looking to refinance their existing loans. They do this by waiving all loan processing fees, including the application and origination fees.
You also won’t have to pay any additional fees if you decide to make early payments towards your loan. You can save on the overall cost of your loan by way of accrued interest.
Interest Rates & Discounts
Reset Refinance Loan offers only a fixed rate option. They also offer attractive discounts for eligible borrowers.
A 0.25% discount is available to all borrowers who sign up for auto-pay. This involves authorizing your bank to take the payment due every month and transfer it directly to the lender. In addition to qualifying for a rate reduction, it also simplifies your monthly payments and protects you from the risk of getting into default.
Members of the military can apply for the Armed Forces Interest Reduction program. Through it, rates are reduced to 0.00% for up to 24 months if they meet all the qualifying criteria:
- While on federal active duty, they have a loan through ISL.
- They were deployed between Sept. 11th, 2001 and June 30th, 2019.
All borrowers can choose from 5, 10, 15, and 20-year loan terms.
Online Application Process
The questions on the new, simplified online application are straightforward. ISL makes it easy, you just need to review and select the student loans you want to refinance.
After submitting the completed form, you will be offered a few refinancing options to choose from. Evaluate all of the options available, and choose the one that is best suited to your financial circumstances and your short and long term financial goals.
Pros and Cons of ISL Education Lending
Refinancing through ISL Education Lending definitely sounds like an attractive option but it does have a few limitations that may clash with your goals. Check out the pros and cons so you can decide whether this is the right lender for you.
No hidden fees – You save a considerable amount right off the bat by not having to pay any application or origination fees.
No penalties for paying early – You are not charged any prepayment fees, which can add to your savings if you decide to make early payments towards your loan.
Competitive rates and attractive discounts – ISL Education Lending has one of the lowest fixed rates around and has a 0.25% reduction in interest rates for borrowers who sign up for automatic payments.
Additional discounts for qualifying borrowers – Members of the military can receive an interest rate discount.
No variable or hybrid rate option – ISL Education Lending only offers the fixed-rate option, which may be okay for some borrowers but not all. If you were looking to leverage the benefits of variable or hybrid interest rates, you will have to look for another lender for refinancing your loan.
Should You Refinance Through ISL?
ISL Education Lending is a fantastic option, but it’s important to explore all your available opportunities before choosing one. Check out College Raptor’s review of the best student loan refinance companies—where we feature ISL!