Understanding The Student Loan Refinancing Nuances with FitBUX

By Joseph Reinke, CFA, Founder of FitBUX

Each student loan refinance company has their own nuances when deciding whether an applicant is a “good risk”, i.e. likely to repay her loans in full and on time if approved. ‘

Such nuances include requiring a co-signer, applying with a spouse, meeting specific debt-to-income ratios, etc… Knowing the nuances of each student loan refinance company or working with your FitBUX Coach to navigate these nuances can save you thousands.

This article, based on a true scenario from an existing FitBUX member, highlights how refinancing with the right student loan company can make a significant difference when it comes to saving time, money and stress. It also highlights what we call the “FitBUX Difference”.

The Situation

Mary decided that she would like to explore the possibility of refinancing her private student loans because she heard it could save her money. She decided to build her profile at FitBUX and schedule a time to discuss refinancing with a FitBUX Coach.

She owed $60,000 in private loans that were split into 3 different loans:

Loan 1: $29,000 @ 6.0%

Loan 2: $28,000 @ 7.75%

Loan 3: $3,000 @ 6.0%

Mary has good credit , a good salary. She also has an additional $140,000 in Federal loans.

The Student Loan Refinance Company

Based on Mary’s FitBUX Profile, her FitBUX Coach pointed her to one of their refinance partners that tends to have a great loan product for those with good credit, a good salary but may have a large amount of overall student loan debt.

Mary was pre-approved for a 10-year fixed rate loan at 4.37% which was much lower than any other company would offer.

So Mary decided to submit her application to refinance. All good so far.

The Bad News

A few days later, Mary received an email saying that she had been denied the loan.

Now, if Mary had simply clicked a link on one of these lead generation blogs and applied for a similar refi, she would have hit a proverbial “wall”, be declined and have nowhere to go.

Instead, Mary contacted her FitBUX Coach to game plan the next steps.

Knowing Student Loan Refinance Company Nuances

When Mary contacted her FitBUX Coach with the bad news, he immediately figured something didn’t seem right because she fit the profile that specific student loan refinance company looked for. So he reached out to FitBUX’s dedicated representative at the student loan refinance company to figure it all out.

Sure enough, the FitBUX Coach was right: her overall amount of student loans impacted how much of her private loans this refi company was willing to refinance.

All she had to do was exclude Loan #3 (the $3,000 loan from the loan and she would qualify to refinance her loans at 4.37%.

Had her FitBUX Coach not known this nuance about the student loan refinance company and had not been able to reach out to an “insider” directly, Mary would not have been able to refinance.

Instead, she refinanced and will save $12,000 and repay this loan in 10 years, saving time, money and gaining peace of mind.

We see examples like this everyday…refinancing is not as simple as it sounds and it can be a fairly opaque space to navigate.

Join FitBUX today, our FitBUX coaches are here to help.

Young professionals manage over $400 million in student loans with FitBUX? Become a member today, it's free.

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