While private student loan lenders don't offer all the same protections you receive with federal loans, they do have some alternatives. Some private lenders offer deferment in the case of unemployment or economic hardship, as well as the option to make interest-only payments before your repayment term begins. Be sure to inquire about these protections before you refinance with a private lender.Not every borrower is eligible for refinancing:and a low debt-to-income ratio.
Typically, at least a 650 credit score is required to be eligible for refinancing, but a score in the 700s gives you a much better chance of qualifying. Lenders look for a DTI ratio under 50%, but the lower the better. To calculate your DTI ratio, divide your total monthly payments by your monthly earnings. Those borrowers who don't qualify on their own often need a co-signer who does.The better your credit score is, typically the better interest rate you'll be given.