Are you ready to simplify your student loan payments and potentially save on interest? We can help you consolidate loans, lower rates, and choose better repayment terms with Sparrow Student Loan Refinance.
The refinancing of student loans allows borrowers to convert their existing educational loans into new loans from private lenders. Interest rates and terms on the new loan are more favorable. By securing flexible repayment terms, this is one of the most recommended financial strategies for students. In addition, refinancing allows borrowers to enjoy lower interest rates and longer repayment terms.
What is Sparrow Student Loan Refinance ?
Using technology, Sparrow helps borrowers find affordable student loans. Users can submit a form and compare real offers from multiple lenders with its prequalification tool.
More than 1 million prequalified loan offers were presented to borrowers through Sparrow’s marketplace last year, facilitating more than $220 million in student loan volume.
Sparrow is a comprehensive platform for student loans. Users can get personalized rates in just three minutes by completing a prequalification form. You can easily compare repayment terms side-by-side to identify the best deal.
Sparrow is free and won’t impact your credit score.
Sparrow Student Loan Rates, terms, and fees
The following table summarizes important terms to consider before using Sparrow.
Loan types : Undergraduate and graduate student loans
Lenders : Banks, credit unions, online lenders, and state agencies
Application process :3-minute prequalification form
Eligibility requirements : None with Sparrow; offer eligibility depends on the lender
Loan amounts : Varies by lender
Rates : None; receive personalized rates based on borrower’s credit history and income
Repayment terms : 5–20 years
Cosigner option? : Yes
Fees : No fees for using Sparrow
What are the eligibility requirements?
While there are no eligibility requirements to use Sparrow Student Loan Refinance , the minimum requirements set by each lender will determine if you prequalify for an offer. Here are some requirements to consider.
- Credit history: Lenders typically look at your credit history to gather insight into your past financial behavior. A positive credit history indicates you are responsible for credit and more likely to repay the loan on time.
- Income: Your income shows lenders whether you have a stable and sufficient income to afford your monthly payments.
- Approximately 90% of private student loan borrowers on Sparrow have a cosigner. Cosigners with good credit can increase your chances of approval and lower your interest rates. You may be able to add a cosigner if you don’t meet the initial eligibility requirements.
How does repayment work?
Depending on the lender and loan type, repayment terms and options may vary.
You’ll need to complete an application through Sparrow to see the repayment options you’ve been prequalified for.
You’ll see actual repayment plans from multiple lenders side-by-side depending on your eligibility. You can use this information to understand each loan’s APR, monthly repayment, total repayment amount, and repayment options before accepting an offer.
Depending on the lender, Sparrow works with, repayment terms range from five to twenty years.
If you have any repayment questions after receiving funds from your lender, that lender will be the primary point of contact.
How to apply through Sparrow Student Loan Refinance?
Applying for a student loan through Sparrow can be completed by following these simple steps:
- Create an account or log in: You’ll need to create an account before you see offers. Some of the information you’ll be asked to submit includes your name, email, and phone number.
- Access your dashboard: Once your account is set up, navigate to your Sparrow dashboard.
- Complete the form: Fill out the three-minute form with the required information, such as your name, date of birth, citizenship status, address, email address, loan size, income and housing expenses, and school details.
- Receive personalized rates: After submitting the form, you’ll instantly see personalized rates from all the lenders you qualify with on your Sparrow dashboard.
- Compare loan options: Review repayment plans from multiple lenders side-by-side, comparing APR, monthly repayment, total repayment amount, and repayment options.
- Choose the loan option that best suits your needs and click “Apply” to begin the application process. In order to complete the official loan application, you will be directed to the lender’s website. This may result in a hard credit inquiry on your credit report.
- Submit required documents: Follow the lender’s instructions to provide any necessary documentation for the loan application process.
- Await approval: Once you’ve submitted your loan application, wait for the lender to respond with an offer of credit. This typically takes three to four business days.
- Sign and accept the loan offer: If approved, carefully review the loan terms and conditions, sign the agreement, and accept the loan offer.
Sparrow FAQs
Does Sparrow offer private or federal student loans?
Sparrow is a comparison platform for private student loans, partnering with lenders to offer undergraduate and graduate student loans. It does not offer federal student loans, which the U.S. Department of Education provides.
Does applying with Sparrow hurt my credit?
Through Sparrow, you can apply for personalized rates using a soft credit pull, which won’t harm your credit score. If you apply for a loan on a lender’s website, a hard credit inquiry may be conducted, which could affect your credit score.
Does Sparrow require a cosigner?
Sparrow does not require a cosigner. However, having a cosigner can improve approval chances and result in better terms and lower interest rates. For those without a cosigner, Sparrow partners with several lenders that do not require a credit check or a cosigner.
Conclusion
A platform called Sparrow collaborates with 14 private lenders in the USA. Sparrow displays your profile and application to its partner lenders once it has approved it. In the event that your application meets the lender’s requirements, they will accept it and grant you the loan based on your credit score and other eligibility requirements.
