In this Splash Financial review, we’ll explain how their service works, review how to refinance student loans through Splash Financial, and explore whether it is a good option for you. Enjoy!
Millions of Americans are drowning in student loan debt. The U.S. Department of Education reports that in the last 30 years, “tuition at public four-year colleges has more than doubled.” As you would expect, for those graduating with a bachelor’s degree, student loan debt also has more than doubled.
When you think about the increasing costs of books, room and board, and food, it’s enough to make your head spin. That’s where Splash Financial comes in.
The creators of Splash Financial saw many of their friends dealing with massive student loan debt, and there was no help in sight. Out of that frustration, they created Splash with the goal of helping young college graduates get past their debt and move on with their lives.
If you’re interested in saving money on your student loan payments, Splash Financial could be your answer. Of course, it isn’t the right choice for everybody. So, let’s dig into Splash and see if they can help you!
Splash Financial at a Glance
- Refinance federal, private, and Parent PLUS student loans
- Competitive variable and fixed rates
- Easy and fast online application process
- Checking rates won’t impact your credit score
- Loans available for $7,500 to $300,000
- Repayment terms between 5 and 15 years
- Married couples can refinance together
- No origination or prepayment fees
Who is Splash Financial?
Splash Financial is an online student loan aggregator that pairs applicants with financial institutions who provide student loan refinancing. They partner with multiple banks and credit unions to offer some of the lowest interest rates for student loan refinancing that you’ll find on the market.
Using the personal information you provide, Splash will search for the perfect fit and best rates from their approved lenders. Through their easy-to-use application process, you’ll be able to get a customized interest rate in about 3 minutes.
Unlike some similar companies, Splash makes it easy for you by providing the results for your best fit only. Married couples may also be able to refinance their loans into one loan, something not offered with most other companies.
Why Should You Refinance Through Splash Financial?
If you’re not sure whether you should refinance your student loans, keep in mind that refinancing is often a good way to reduce your monthly student loan payments and save on interest. Refinancing also helps you simplify the loan repayment process.
When you refinance, you’re taking out one new loan that pays off all of your old loans. Hopefully, this new loan will have a lower interest rate (saving you money over the life of your loan), longer repayment terms (which could lower your monthly payment), or both. Splash Financial can help you find options for each.
Additionally, Splash Financial’s lending partners offer some of the best interest rates for student loan refinancing on the market. Here’s a quick look at some of what you’ll find:
- Fixed and variable rate loans of $7,500 to $300,000
- Terms range from 5 to 15 years.
- Fixed rates start at 3.87% APR (with 0.25% autopay discount)
- Variable rates start at 3.05% APR (with 0.25% autopay discount)
- Exact interest rates depend on the details of your application, including your income and creditworthiness
- Learn more here
*Current as of June 07, 2019
Getting Started with Splash Financial
Splash Financial has an easy-to-use process for checking interest rates for student loan refinancing. Here’s how to get started:
- Go to SplashFinancial.com
- Click “Get my Rate” on Splash Financial’s homepage
- Sign up using your email address
- Create a password
- Provide some personal information, like your name, address, and phone number
- Enter financial information, like gross income
- Share your education history
- Read and agree to the terms and conditions, and click “Check My Rate”
You will be notified within minutes if there is a loan available for you and will be given a rate quote. It’s important to note that a rate quote is not the same as being approved for a loan. Also, getting a rate quote does not affect your credit score since it’s done as a soft credit pull.
If you decide to apply for one of the student loans Splash Financial offers you, you will need to have the following information handy:
- Income verification: A pay stub or tax return
- Photo ID: A driver’s license, passport, or state-issued ID card
- Payoff verification statements from each existing servicer: A statement that projects the payoff amount 10, 15, or 30 days into the future
- Graduation verification: A copy or photo of your diploma or transcripts
Although getting a rate quote does not affect your credit score, actually applying for a loan does. A hard credit pull will be performed with your application, so keep that in mind.
It is also important to note that you may need to become a member of a credit union to be approved for loans from certain borrowers. This can be done after the pre-approval process and is typically free.
Splash Financial is a great way for grads to save money on student loan interest, but not everyone will qualify. To be eligible for Splash Financial student loan refinancing, you must:
- Be a US Citizen (Splash Financial doesn’t refinance college debt for permanent residents)
- Have graduated from a Title IV school with an associate degree or higher
- Have a minimum credit score of 670 if you’re applying with a cosigner
- Have a minimum credit score of 700 if you’re applying without a cosigner
If for some reason you don’t qualify, you can check out a site like Credible to compare student loans from multiple companies at once.
Benefits of Using Splash Financial
Receive quotes quickly – The application only takes a few minutes to complete and walks you through each step of the process. You can complete the application online without talking to anyone on the phone, but that option is available if you need it.
Flexible repayment options – There are multiple loan length options available with Splash Financial. Loan terms include 5, 8, 12, and 15-year loans.
No fees – Splash Financial loans do not have any application, origination, or prepayment fees.
Chat capabilities – As you go through the process of getting a rate quote or applying for loan refinancing, click the chat button and immediately receive help.
Autopay discount – If you sign up for the autopay option, you’ll receive a 0.25% rate discount.
Where Splash Financial Falls Short
Can be difficult to get approved – Some of the requirements from Splash Financial’s partners are more stringent than other lenders. They may require a higher credit score and do not accept borrowers who are not U.S. citizens. This means permanent residents are excluded.
Not eligible for Public Service Loan Forgiveness – Borrowers holding federal student loans need to be careful about losing potential federal benefits. Remember, refinancing means closing the old loan(s) and getting a brand new one, in this case with a private company. If you choose to refinance a federal loan, you’ll no longer be eligible for federal loan-specific programs like Public Service Loan Forgiveness (which is handled through myFedloan) or Income-Driven Repayment Plans. Not all federal loan holders qualify for loan these programs anyway, but it’s important to find out what you’re eligible for and make sure you don’t give up a benefit you might need to use later.
No deferment and forbearance options – In general, Splash Financial’s lending partners do not offer deferment and forbearance options to its borrowers. In extraordinary circumstances, they may work with a borrower to find a solution, but this is rare and on a case-by-case basis.
Must have earned a degree to qualify – If you accumulated student loan debt but didn’t finish school, you are not eligible for a loan through Splash Financial.
No cosigner release – Your cosigner is on the hook for your loan until it’s completely paid off. You should choose your cosigner wisely and manage your payments well. Missing a payment could damage your cosigner’s credit.
Who Should Use Splash Financial
- Borrowers looking to refinance student loans – If you’re in the market to refinance your student loans to a lower rate, Splash Financial offers some of the lowest rates on the market. Refinancing could make sense for those wanting to save money, lower their monthly payments, or pay their loans off faster. Splash Financial provides an easy way to get a customized interest rate in minutes.
- College graduates with private student loans – If you have private student loans, you might be able to get a lower interest rate through refinancing. If you have more than one loan, you can also simplify your life by consolidating them into one payment.
- Borrowers with high interest, unsubsidized Direct Loans – Some people assume a federal loan means a low interest rate, but that isn’t always the case. If you took out a high-interest or unsubsidized student loan, you may be able to find a better deal with Splash Financial.
- Those with Parent PLUS loans – The rates on Parent PLUS loans can be higher than in the private market. Put these two together, and your interest will accrue lightning fast. A lower rate on those big loans can save you some serious cash.
- Those having issues with their student loan provider – Are you having problems with your federal student loan servicer? Refinancing through Splash Financial means you won’t have to deal with them anymore.
- Married couples that both have student loans – Something that Splash Financial offers that isn’t very common is the option for married couples to combine their student loans into one loan. This makes managing your student loans easier.
Who Should Avoid Splash Financial
- Borrowers who may be eligible for PSLF or IBR programs – Certain federal student loan borrowers might not benefit from refinancing with Splash Financial (or any private lender for that matter). For instance, if you’re eligible for loan forgiveness or income-based repayment programs, refinancing your federal loans will disqualify you from receiving assistance. In this instance, giving up that option might not be in your best interest.
- Loan holders with low interest rates – If you already have a low interest rate, you probably won’t save money by refinancing.
- Borrowers with less than $7,500 in student loan debt – The minimum loan amount through Splash Financial is $7,500. Student loan balances under that amount won’t qualify for refinancing with Splash Financial. Try comparing rates at Credible instead.
- Borrowers who cannot meet Splash Financial’s strict requirements – Splash Financial has some pretty difficult conditions to meet. For one, you must have received a degree to qualify. They have pretty high income and credit score requirements, as well. Only those with good credit, a decent income, and good debt-to-income ratios will qualify.
Splash Financial Review: The Bottom Line
If you are looking to refinance your student loans, Splash Financial is worth a look. They offer competitive refinancing rates and could be a good option for you. There’s no cost to get a customized interest rate, it only takes a few minutes, and the process is quick and painless.
We hope this Splash Financial review has been helpful! Thanks so much for reading and good luck!