Refinance Punjab National Bank Student Loans in the U.S.
So, you have a student loan from Punjab National Bank and you want to repay it as quickly as possible. But you are in the U.S. and are either struggling to repay it or realize there are faster ways to get it settled.
Below is some handy advice on how you can save time and money. We’ll explain how to refinance Punjab National Bank student loans in the U.S.
What Is Student Loan Refinancing?
Student loan refinancing is when you take out a new loan to repay your existing loan. But, your new loan will have better loan terms and interest rates than your existing loan.
Student loan refinancing is only a good idea when you get a cheaper way of settling your current student debt. A loan is a loan and it still needs to be repaid no matter what. But, you can refinance a loan to get a better deal that suits your needs and saves you money in the long run.
If you are interested in refinancing you’ll have to check whether you’d be eligible.
Are You Eligible for Refinancing?
Lenders always need to reduce their risk as much as possible. So they’ll still do the proper checks and require documentation before offering you a loan. Remember, applying for refinancing is basically re-applying for your current student loan. So, what will lenders look at?
Your credit score is a summary of your ability to handle your debt. A lender will check your credit score and rate what level of risk you pose them. A better score leads to a higher probability of getting refinancing and a lower interest rate.
Employment or Prospective Job Offers
Lenders need to know you are able to repay your loan. So, they will want to confirm your current employment. Or they would at least like to see written proof of job offers.
It’s important to have access to the country where you’re repaying your loan. Your lender wants to make sure you are still going to be in the country for the duration of the loan term. Otherwise, if you stop paying they won’t be able to get their money back.
Why You Might Want to Refinance Your Punjab National Bank Student Loan
No one wants end up broke when they reach retirement. The unfortunate truth is, some people do. Having to repay an expensive loan hampers your ability to save for retirement. Refinancing your loan and paying it off sooner can help you start saving for retirement earlier.
4 Reasons You Can Do Better for Yourself Than Punjab National Bank
Dreadful Customer Service
Punjab National Bank isn’t exactly known for its great customer service. In fact, a quick internet search will produce hundreds, if not thousands, of complaints pertaining to their customer service. Some borrowers complain that the customer service line is always busy. Others complain that it’s nearly impossible to get answers to even the simplest questions. But all of these people agree that there is a standard of professionalism and availability that isn’t being met.
No Option for a Fixed Interest Rate
Unlike many lenders in the U.S., Punjab National Bank does not offer fixed interest rates. This means borrowers with Punjab, like you, are subject to variable rates that could fall but mostly rise, costing more money each month. This also means that your monthly payment reduces your principal balance by less during months in which the interest rates are up. And, unfortunately, the negative effects of this reality only affect the borrower.
Your Interest Rates are Too High
Most students’ credit is underdeveloped at the time they start school. This leads most borrowers to have interest rates that are way too high, especially when you consider their post-graduation credit scores. If your Punjab National Bank student loan interest rate is so high that more of your monthly payment is going toward the interest, your rate might be too high.
You’re Losing Money on the Exchange Rate
While it’s not the fault of Punjab National Bank, the currency exchange is increasing the cost of your student loans payments. With the American dollar being stronger than the Indian rupee, you’re paying extra money every time you make a student loan payment to India from the U.S.–and that’s on top of the principal and interest you’re already paying every month.
3 Signs You Need to Refinance Your Student Loans
Still not sure if you should refinance your Punjab National Bank student loan in the U.S.? Read further for more of our tips below. And after you’ve read this you’ll know for sure whether it’s time to refinance.
1. High Interest Rates
Higher interest rates lead to more expensive debt and higher monthly repayments. This means you’ll have a harder time repaying your loan and ultimately be paying more in the end.
If you suspect you can get better interest rates at a new lender, you should definitely look into the possibility of refinancing. Especially to a U.S. bank, as American banks generally offer lower interest rates than Indian banks.
2. You Have Better Income Now
Back in the day when you applied for the loan you were probably young, you didn’t have a job or steady income, and you didn’t have your degree yet. But, now you have a job. You earn more income than before, which means you are a lower risk to a lender. If this is the case, the chances are quite good you’d be able to get a better rate when refinancing.
3. Your Credit Score Is Better
Your credit score is a basic rating of your risk profile and a history of your financial dealings. Time has passed and if you’ve been paying off your current student loan faithfully, your credit score would have improved.
A better credit score means better rates as you are a smaller risk to lenders. So, if your credit score has improved you should definitely refinance your Punjab National Bank student loans in the U.S.
Can You Refinance Punjab National Bank Student Loans in the U.S.?
Great news! Yes, you can definitely refinance your loan with an American lender. You don’t have to put up with bad loan terms at Punjab any longer. However, not all American lenders are willing to lend money to visa holders. And even those that do might make you face a few additional obstacles.
Why Is It So Hard for Visa Holders to Refinance at American Banks?
If you are the holder of a legal visa and you have a job, why is it then still so hard to get your student loan refinanced?
The U.S. Government Grants Most Student Loans
A large number of lenders do not possess the power to grant student loans. The U.S. Government issues these student loans. So, it takes longer for the loans to be cleared by the government.
Most Student Loans Can’t Be Discharged
Many of these loans can’t be discharged in bankruptcy. You have to pay it back over your lifetime. Lenders see this as a big risk. If you are a visa holder then you don’t yet have the promise of permanent American residency. Lenders have no definite guarantee that you’ll be able to stay in the country and repay your loans.
Large Loans and Short Visas
Many international students have large loans but short visas. It is possible that the payback period of their loans would stretch beyond their visa period. Once again sounding the alarm bells for lenders as there is a risk they won’t get their money back.
The good news is there are lenders out there like Stilt who offer great loans specifically to visa holders. Let’s take a closer look below.
What Is Stilt?
Stilt is an online private lender that specifically supplies credit to immigrants and visa holders. It’s not limited to these people only, but they do receive extra special care.
How to Refinance Your Punjab National Bank Student Loan with Stilt
Like any loan application, there are a few things you need to comply with first.
- to be physically present in the U.S.
- Have a U.S. bank account in your name.
- Have a U.S. personal phone number in your name.
- Have a U.S. address in the eligible states (a P.O. Box is not enough).
- AZ, IL, FL, TX, PA, CA, MI, WA, GA, NY, NJ, UT, WI
- Have one of the following legal, valid, and eligible U.S. visas in one of the licensed states.
- F-1, H-1B, O-1, J-1, L-1, TN, L-1, G-1, DACA, and Asylum seekers.
Now let’s take a look at how applying works.
1. Submit Your Application
With Stilt, you can apply online. You should receive a response within 24 hours. It’s also possible that Stilt contacts you for a follow-up call to verify certain information.
2. Receive Your Offer
You’ll receive an offer from Stilt after all the necessary boxes have been ticked. You’ll receive your unique offer and a promissory note to sign, should you accept it. Upon your signature, you’ll wait 2-3 working days for the refinancing to be initiated. This means the loan disbursement and repayment of your current lender will be completed after this period.
3. Start Repaying Your Student Loan
As Stilt will be your new lender, you’ll now have to repay them. Setup your automatic payment options and start repaying your cheaper student loan. As an added bonus, you can even pay early installments with no early payment penalties.
5 Tips for Refinancing Student Loans
Once you’ve decided to refinance your student loan, keep the tips below in mind. This will help you successfully refinance Punjab National Bank student loans in the U.S.
Make sure you a have a steady job, or at least a written job offer. This sets a lender at ease knowing that you have a promise of future income and will help you get a great loan offer much easier.
Reduce Unrelated Debt
Lenders have access to information regarding all of your debt. They’ll be more hesitant to offer you student loan refinancing if you have too much unrelated debt like credit cards, mortgages, and auto loans. So before you apply for refinancing, try to reduce your other debt as much as possible.
Understand the Debt-to-Income Ratio
This ratio is calculated by lenders to determine whether you’ll be able to repay a loan. Earning $10,000 per month with monthly debt payments of $5,000 leads to a 50% debt-to-income ratio, for example. This means 50% of your income goes to loan repayments. A lower ratio is favored by lenders as this increases your chances of being able to repay your loan.
Get Your Credit Score
Know your credit score. You could be unaware of unsettled issues. Or perhaps you need to know it’s time to improve your credit score. A better credit score leads to a higher chance to refinance a Punjab National Bank Student Loan in the U.S. If you know your credit score, you’ll know which lenders to apply to and what you need to do to get a good refinancing offer.
Have Sufficient Income
It’s simple, lenders will only supply credit to those who have the means to repay them. Seek legal ways to increase your income if you are not yet eligible for refinancing.
Student loans can be difficult to repay, but that should not lead you to your financial demise. A good education is your ticket to a better future, so let’s keep that future bright by increasing your eligibility to refinance your Punjab National Bank Student Loans in the U.S.