Student Loan Refinance Frequently Asked Questions
Have questions about the Brazos Refinance Loan? We've answered some of the most common questions below!
If you still have a question, give us a call at 1-800-453-0841 or email us at info@brazos.us.com.
Why Refinance?
Refinancing your loan means that you take out a new loan to pay off your old loan(s).
You should consider refinancing:
- if your current education loans carry a high interest rate,
- if you would like to reduce your payments,
- if you would like to pay off your debt sooner.
- if your current loan is cosigned and you are ready to be on the loan without a cosigner
Refinancing can:
- save you money over the life of the loan,
- simplify repayment by consolidating you consolidate your loan(s) into a single monthly payment
- help you pay off your debt sooner,
- lower your monthly payment.
- remove a cosigner from any obligation on your loan.
If you have a high-interest student loan, you should consider refinancing.
Refinancing isn't for everyone, and you should carefully consider refinancing your student loans before making a decision.
For more details, please check out our guide to Refinancing Your Student Loans
Brazos is a nonprofit company that has been helping families finance the cost of their college education for over 40 years. As a nonprofit, our goal is to save you money by charging the most competitive rates possible. Brazos is an independent nonprofit and is not affiliated with any schools. For additional information about Brazos, check out our About Us page.
At this time, Brazos only offers refinance loans in the state of Texas to Texas residents.
If you’re not a Texas resident we can still help.
Borrower and Loan Eligibility
To be eligible for Brazos Refinance Loan, you must:
- Be a United States citizen or National, permanent resident, or, if applying with an Eligible Cosigner, a non-citizen with a work or student visa or a DACA Recipient.
- Be a Texas resident and be at least 18 years old. (Not a Texas resident?)
- Have a verified income and a strong credit history, or apply with a qualified cosigner.
Please review our Eligibility Criteria for further details.
If your credit does not meet our minimum credit criteria, you may still qualify by applying with a qualified cosigner. Additionally, even if you meet the minimum requirements, applying with a cosigner who has a stronger credit history may reduce the interest rate on your refinance loan even further, saving you more money over the life of the loan.
Yes, we offer a cosigner release program. A borrower may request to have the cosigner released after making twelve (12) consecutive on-time payments or prepaying an amount equal to twelve (12) months of principal and interest by the due date just prior to the request. Additionally, the borrower will have to pass a credit check and qualify with at least the same pricing tier as the cosigner on the loan at the time of the application.
Yes. If you default on your Brazos Refinance loan and have a cosigner, your cosigner will be liable to pay your loan.
Both existing private and federal loans are eligible, including loans made under the William D. Ford Direct Loan Program, the Federal Family Education Loan Program, Health Education Assistance Loan Program, and the Federal Perkins Loan Program. Additionally, you may refinance a combination of multiple types of loans into one loan with one convenient monthly payment.
Yes. Brazos allows refinancing of private loans made by other lenders like Navient, Sallie Mae, or Citizens or student loans handled by other servicers. Brazos Refinance loans have lower interest rates with flexible repayment terms to help you manage your finances.
Yes. Brazos Refinance program covers existing private student loans from other lenders.
Yes. Direct PLUS loans made to parents and Parent PLUS loans made under the FFELP program, as well as private parent loans may be refinanced with a Brazos Refinance Loan.
Under certain circumstances, we will allow you to refinance loans that are not your loans.
Under certain circumstances, we will allow you and your spouse to consolidate your loans into a single refinance loan.
Yes. Whether you previously consolidated federal loans through the government’s consolidation program or you did so with a private lender, Brazos still allows you to refinance your existing consolidation loan.
Tax questions are complex, and you should consult your own tax advisor to answer this question. However, Brazos loans are considered qualified education loans for federal and state tax considerations. You may or may not be eligible for deducting interest on your student loans, depending on your individual situation.
The minimum loan amount is $10,000. The maximum loan amount is $250,000 for borrowers who have taken out loans in pursuit of a bachelor's degree, and $400,000 for borrowers who have obtained a graduate, medical, law or other professional degree.
Brazos Refinance Loan Options
We offer variable and fixed rate loans with multiple repayment terms available.
Variable rate loans carry an interest rate that is recalculated periodically based on a market index rate plus a set number of percentage points. The interest you pay on these loans may increase or decrease after it has been originated, depending upon changes to that market index rate. Because the rate may change, your payment may vary over the life of the loan as well. Variable rate loans tend to be less expensive at the beginning of the loan than comparable fixed rate loans of the same term.
Fixed rate loans carry a set interest rate and payment for the life of the loan. This provides predictable payments for the borrower. Because fixed rate loans create some interest rate risk for the lender, fixed interest rates tend to be higher at the beginning of the loan than comparable variable rate loans.
Refinancing your student loans won’t cost you any money. We do not charge any upfront origination fees, application fees or prepayment penalties, so borrowers may prepay their loans at any time.
Fixed Rates. The interest rate for a fixed rate refinance loan depends on your credit profile and the length of repayment or term that you select for the loan. The rate will remain constant for the life of the loan, except for periods where you may take advantage of the Auto-Pay Discount.
Variable Rates. Variable Rate is equal to the ”Rate Index”, which is the market index rate selected by the lender, which is described in more detail in the credit agreement and disclosures you will receive when you apply. The Variable Rate changes at a set date, monthly, if the Rate Index changes Unlike many other lenders, in no event will the Variable Rate exceed 9.90%. A change in the Variable Rate will cause the monthly payment amount to change.
Please visit our Refinance Rates & Terms for more information about our interest rate options.
Whether you choose a fixed or variable interest rate really depends on your risk tolerance and particular financial situation. Check out the Fixed vs. Variable Rate section of our Student Loan Refinance Guide.
Yes, we offer a 0.25% rate reduction (the "Auto-Pay Discount") when you sign up with your loan servicer to have your payments automatically drafted from your bank account. Failure to make payments may result in the loss of the 0.25% Auto-Pay Discount. You may requalify for the Auto-Pay Discount upon reauthorization of automatic payments from a valid bank account. The Auto-Pay Discount will not apply during periods of deferment or forbearance. Once your loan disburses, you may contact your loan servicer to enroll in this program.
To learn about the difference between refinancing and consolidation through the Department of Education, check out our Refinance vs. Consolidation page.
Use our Refinance Calculator to help compare your options. You will need to know a few things about your existing loan or loans, including the principal amount outstanding, the interest rate on each of your loans, and the remaining term.
Applying For a Loan
Brazos Refinance Loans are originated by Brazos Education Lending Corporation. When you click “Apply Now” to apply for a Brazos Loan, you will leave studentloans.com and be taken to the loan origination website for processing of your loan application.
Once your loan is fully disbursed, your loan will not be sold to an independent third party; however, Brazos Education Lending Corporation may sell your loan to another Texas non-profit company managed by Brazos Higher Education, such as Brazos Higher Education Authority.
Yes, the application process involves a “hard credit pull,” which may affect your credit score. We strive to provide transparent pricing. Visit our Find My Rate to see what rates are available if you qualify for a loan.
You will need:
- Proof of Texas residency (a state ID or Driver’s License).
- Your social security number.
- Your permanent address.
- Proof of income for you or your cosigner (depending upon your sources of income, this may be your two most recent pay stubs, 1099 Forms, or your most recent tax return).
- For each loan you want to refinance, you will need a screenshot from your account, your most recent billing statement, or a payoff letter from our student loan servicer. The documentation must be no more than 30 days old and include your name, account number, current interest rate, the servicer payoff address, and the amount required to pay each loan in full.
Once you apply, most people receive an instant decision regarding pre-qualification. If pre-approved, you will be asked to upload documents verifying income , residency, and documentation about your underlying loans that you wish to refinance. We estimate the entire process may take a few weeks. Having the documentation ready when you apply will help speed up the process.
Repaying Your New Brazos Refinance Loan
Brazos Student Loans are serviced by American Education Services (AES).
Instructions for registering your online account will be provided to you by your loan servicer. Once registered, you will be able to log in online and set up payments.
Tax questions are complex, and you should consult your own tax advisor to answer this question. However, Brazos loans are considered qualified education loans for federal and state tax considerations. You may or may not be eligible for deducting interest on your student loans, depending on your individual situation.
A Borrower who is having difficulty making their scheduled monthly payments may request an alternative repayment schedule.
Borrowers will be placed on an alternative repayment plan which allows for 24 months of interest-only payments, followed by equal payments of principal and interest for their remaining repayment term.
Once the Alternative Repayment Schedule has commenced, a Borrower may elect to end the alternative schedule and be placed back into regular repayment.
If you’re refinancing Direct Loans, you may lose certain repayment options available to you and should understand these options before applying. You can learn more about repayment options on Direct Loans by visiting Federal Student Aid
Under certain circumstances, including economic hardship, you may be eligible for loan forbearance. In this case, you may temporarily postpone making monthly loan payments for a specific period of time.
Three types of payment forbearance described below are available. Please contact your servicer for details.
Economic hardship forbearance
Borrowers are able to defer payment on their loan for 3 months at a time, with a cumulative forbearance length of 12 months.
Military forbearance
Borrowers on active duty may apply to have their loan payments deferred while on active duty. Cumulative military forbearance length of 36 months is available.
Natural disaster forbearance
Borrowers affected by a natural disaster may request a forbearance of up to 3 months.
Interest continues to accrue during periods of forbearance. At the end of the forbearance period, the accrued interest is added to the balance of your Brazos Refinance Loan and the loan is re-amortized to ensure the loan pays off in the applicable repayment term. This could change your monthly payment.
If you’re considering refinancing Direct Loans, you may lose certain types of forbearance and deferment options that may be available to you. You should understand these options before applying for a Brazos Refinance Loan. You can learn more about deferment and forbearance options on Direct Loans by visiting Federal Student Aid.
No, the Brazos Refinance Loan does not include any grace period.
The interest rate is the percentage of the loan amount that is charged for borrowing money.
The APR, or annual percentage rate, represents a more complete view of what you may be or are being charged and includes fees, such as origination fees if applicable, as well as costs attributed to times when the loan is estimated to be in a status where payments are not being made but interest continues to accrue, such as the Interim Period. An advertised APR, which may be found on websites and marketing materials, always assumes certain facts about a “standard” loan, such as an assumed period of time for payment deferment which may not line up exactly with your specific facts and circumstances. Once you actually apply for a loan, you will be calculated and provided with an APR that more closely aligns with your specific facts and circumstances and, thus, may be different than what was advertised.
No, the loan will not be placed in default or be deemed immediately due and payable in full if the primary borrower or cosigner files for bankruptcy.
Upon acceptable proof of death or total and permanent disability:
- If the borrower dies or is deemed totally and permanently disabled, the borrower is removed from the loan and the cosigner will be solely responsible for repayment of the loan.
- If the cosigner dies or is deemed totally and permanently disabled, the cosigner is removed from the loan and the borrower will be solely responsible for repayment of the loan.
We do not accelerate debt upon death or total and permanent disability of any party to the loan, and we will not pursue the estate a deceased individual.
Not a Texas Resident?
At Brazos, we are committed to making higher education more affordable. Reach out to us, and we will assist you in finding the best refinance loan options based on your situation.