 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: Can You Refinance Student Loans?\n--------------------------------\nStudent loan refinancing can be a good deal, but not everyone is eligible. Lenders prefer to work with borrowers who have good or excellent credit, a track record of on-time bill payments and reliable income. These characteristics help demonstrate to lenders that you're likely to repay the loan as agreed.\nIf you won't qualify on your own, however, you can apply with a cosigner who meets the credit and income requirements. That person will be responsible for repaying the loan if you can't. Make sure to have a candid conversation about this possibility, and how that could affect their own finances.\nIf you're ready to get started refinancing your student loans, follow these steps:\n*   **Check your credit score**: Since your credit score is one of the most important eligibility factors, find out where you stand before you apply. A good FICO® Score☉ is 670 or higher, and a higher score betters your chances of qualifying and receiving a favorable interest rate.\n*   **Pay down debt**: Another factor lenders look at closely is your debt-to-income ratio (DTI), which is the amount of debt you have compared with your gross income. To lower your DTI ratio, consider paying off debt before applying to refinance. Reducing credit card balances, for instance, could make you a more attractive potential refinance borrower.\n*   **Shop around**: Compare multiple quotes from lenders before making your final refinancing decision. Many lenders offer the opportunity to check the interest rate you could qualify for without submitting a full application. In that case, the lender performs a soft inquiry, which won't affect your credit. Also, take a look at the repayment term, or how long you'll be required to repay the loan; fees you'll be charged; and, if you're using a cosigner, whether it's possible for him or her to be released from the loan after a certain number of payments.\n*   **Gather required documents**: Once you've chosen a lender, organize the documents you'll need to submit. Typically, you'll need to provide a copy of your government-issued ID; a pay stub or proof of employment; a federal W-2 form for the most-recent tax year; your latest tax return if you're self-employed; and a payoff statement from your current lender, detailing how much of your loan balance is left to repay. END