If you have private student loans from when you were studying at university, you may find that the debt has continued to impact your life. Unfortunately, private student loans tend to have extremely high interest rates, as they are not secured against an asset. This means that you can end up paying a considerable amount of interest far into the later years of your life.
Refinancing this debt is one of the best ways to avoid this problem. Lenders will pay off your debt and consolidate it under a lower interest rate. One of the biggest lenders to be doing this in the United States is Bank of America. This review will explore the pros and cons of using Bank of America for your student loan refinancing.
Bank of America is one of the largest financial institutions in the country. They offer a range of financial product to their customers – they issue mortgages, car loans, personal loans, and a host of different lending products. Unfortunately, Bank of America doesn’t offer a student loan refinance program, but this doesn’t mean that you’re unable to refinance your debt through them via alternative routes.
If you’re a homeowner, you can refinance your home to take out extra debt and pay off your current student debt. Mortgage rates are typically much lower than student loan rates, so this could be a viable option. In addition, homeowners can also take out a Home Equity Line of Credit, which is effectively a line of credit that is borrowed against the value of your home.
Lastly, those who don’t own a home could apply for a Bank of America credit card to pay off their student debt. There are many Bank of America credit cards that offer long interest-free introductory periods that you could take advantage of.
- Trusted lender
- Range of alternative options
- Large customer service team
- No direct student loan refinance program
- Limited options for non-homeowners
Because Bank of America doesn’t offer a specific student loan refinance program, they might not be the ideal company to work with. Using Bank of America will require you to be able to take advantage of one of the alternatives we mentioned in the ‘Overview’ portion of this review. If you’re a homeowner, Bank of America may be a good option. Having the security of a large bank when organizing finance is a major plus, but not having a specific student loan refinance program may make Bank of America a bit too complicated of an option. Remember, student loan refinance is supposed to simplify your life, not complicate it.