But choosing the right lender, whether it’s for a new student loan or for refinancing your existing loans, can make all the difference in paying off that debt.
In this Education Loan Finance Review, we’ll go over everything you need to know about this lender so that you can decide whether it’s the right choice for you.
Who is Education Loan Finance (ELFI)?
Education Loan Finance (ELFI) is a student loan refinancing and lending service offered by the Tennessee-based Southeast Bank.
ELFI is a new option in the student loan arena, only being around since 2015. However, its parent company, SouthEast Bank, has been around since 2001.
ELFI isn’t your only option when it comes to taking out a private loan or refinancing your existing debt. But the lender offers a few benefits that set it apart from its competitors, including the refinancing of Parent PLUS Loans.
Education Loan Finance Review: Student Loan Refinancing
Here, we’ll review ELFI’s refinance loans. To read a review of ELFI’s private loan options, see Education Loan Finance Review: Private Student Loans, above.
To review student loan refinancing, as well as the difference between federal loan consolidation and private loan refinancing, click here: Can You Refinance Student Loans? A Guide to Student Loan Refinancing
Key Pros and Cons
Pros:
- Available in all 50 states and Puerto Rico.
- Refinance up to your total outstanding loan balance.
- Terms from 5 to 20 years.
- Fixed and variable interest rates available.
- You can refinance Parent PLUS Loans in your name.
- You can remove your cosigner from your original loans when you refinance.
- Highly-rated customer service with Personal Loan Advisors.
- Prequalify and find your rates without a hard check on your credit.
- No application or origination fees.
- No prepayment fees.
Cons:
- Minimum refinance amount is $15,000.
- You can’t postpone payments if you return to school.
- No refinancing for borrowers who hold only an associate’s degree.
Overview
Refinance loans are ELFI’s bread and butter. If you’re considering refinancing your private or federal student loans with a private lender, you’ve likely heard of Education Loan Finance.
ELFI’s refinance loans are similar to its private student loans in many ways: you must meet similar eligibility requirements, and they have many of the same benefits.
However, to qualify for a refinance loan from ELFI, you must have already graduated from an eligible institution (see ELFI’s Approved Post-Secondary Institution list) with at least a bachelor’s degree.
One of the unique benefits of ELFI refinance loans is that you can refinance Parent PLUS Loans in your name.
ELFI Refinance Loan Repayment
Refinance loan repayment differs from repayment of a new private loan. With a refinance loan, you must already be a college graduate. Therefore, there is no grace period. Payments on the principal and interest of your loan start one month after your loan is disbursed.
An exception to this rule is if you’re refinancing loans which are still within their original grace period. In this case, ELFI may grant a deferment until the end of that grace period.
Interest on your refinance loan will continue to accrue during that period, however, and it will be capitalized at the end of the deferment period.
Requirements
To qualify for a refinance loan from ELFI, you must meet the following requirements:
- You do not need a cosigner, but using one may help you qualify and/or get a lower interest rate;
- You and your cosigner must be U.S. citizens or permanent resident aliens without conditions;
- You must have a minimum of $15,000 in loans to refinance;
- You or your cosigner must meet the credit and income requirements;
- You and your cosigner must be at the age of majority or older at the time of your application; and
- You must have earned at least a bachelor’s degree from an approved institution and program;
ELFI Loans Forbearance
SouthEast Bank’s terms for ELFI private loans and for ELFI refinance loans don’t disclose a forbearance option. However, the terms state that your loan terms may include “more information about loan eligibility and repayment deferral or forbearance options.”
If you’re concerned about forbearance, make sure to read the fine print on your loan application and agreement before accepting funds.
ELFI Loans Cosigner Release
Additionally, there is no disclosed option for cosigner release in ELFI’s Terms and Conditions for private or refinance loans. However, if you want to release your cosigner from responsibility, you can apply for an ELFI refinance loan with high enough credit of your own.
This will essentially do the same thing as cosigner release, and it may qualify you for better loan terms than you had initially, depending on your credit and income.
Education Loan Finance Review: Private Student Loans
Here, we’ll review ELFI’s private student loans. To read a review of ELFI’s refinance loan options, see Education Loan Finance Review: Refinance Loans, below.
Key Pros and Cons
Pros:
- Available in all 50 states and Puerto Rico.
- Highly-rated customer service with Personal Loan Advisors.
- Available to undergraduate and graduate students, as well as parents.
- Borrow up to the full cost of your qualified education expenses.
- Terms from 5-15 years (10-year limit for parent loans).
- Fixed and variable rates available.
- Qualify or get better rates with a cosigner.
- Multiple options for beginning repayment while you’re still in school.
- Prequalify and find out your rates without a hard check on your credit.
- No application or origination fees.
- No prepayment fees.
Cons:
- Minimum loan amount is $10,000.
- No approval for international students with a cosigner.
Overview
ELFI was previously known only as a student loan refinance lender. But in 2019, it started offering new student loans. ELFI private loans are available to students—including undergraduate and graduate students—as well as parents.
If you’ve completed the FAFSA, sought scholarships and grants, and made the most of your federal loan options, but you still need money for school, a private student loan is likely your best option.
With a single ELFI private student loan, you can make up the difference between what other sources will cover and the full cost of your educational year. However, that amount must be at least $10,000—the minimum ELFI private student loan amount.
ELFI Private Loan Repayment
ELFI private loans have repayment terms of 5 to 15 years. Parent loans are limited to a maximum term of 10 years.
Education Loan Finance offers four different types of repayment for new private loans: immediate, interest-only, fixed, and deferred. The first three of these repayment options allow borrowers to start repaying their loans while they’re still in school, which can help reduce the amount of debt they end up with overall.
Immediate
Your first option for repaying your ELFI private loan is immediate repayment. Just like it sounds, choosing this option will result in your starting to repay your loan while still in school.
Immediate repayment with Education Loan Finance works like this:
- Your repayment term starts immediately upon the disbursement of funds to your school.
- You’ll make full payments—on the principal and interest—while you’re still attending school.
- These payments will be due each month, starting 30 to 60 days following disbursement of the loan.
Interest Only
Interest-only repayment is another option that allows you to work on paying your student loan off while you’re still in school. However, you’ll only be paying the interest on your loan.
Interest-only repayment with Education Loan Finance works like this:
- You make interest-only payments on your loan while you’re still in school.
- You continue paying only the interest during a six-month grace period after graduation.
- You begin making full principal-and-interest payments 30 to 60 days after the grace period ends.
Fixed
The fixed payment option allows you to pay a much smaller amount each month while you’re still in school.
Fixed loan repayment with Education Loan Finance works like this:
- You pay $25 per month on your loan while you’re still in school.
- You continue to pay $25 per month during the six-month grace period after graduating.
- You begin making full principal-and-interest payments 30 to 60 days after the grace period ends.
Deferred
ELFI also offers the option to defer payments while you’re still in school.
Deferred loan repayment with Education Loan Finance works like this:
- You don’t make any payments on your loan while you’re in school.
- You don’t make any payments during the six-month grace period.
- Full payments on the interest and principal of your loan start 30 to 60 days after the grace period ends.
Requirements
Eligibility for a private loan from ELFI includes the following:
- You do not need a cosigner, but using one may help you qualify and/or get a lower interest rate;
- You and your cosigner must be a U.S. citizen or permanent resident without conditions;
- You or your cosigner must have a minimum credit score of 680;
- You or your cosigner must have a minimum income of $35,000;
- You or your cosigner must have a minimum credit history of 36 months;
- You and your cosigner must be at the age of majority or older at the time of application;
- For an undergraduate or parent loan, you must be (or be the parent of) an eligible student enrolled at least half-time in a Bachelor’s degree program at an eligible institution; and
- For a graduate student loan, you must be enrolled at least half-time in a Master’s or Doctoral degree program at an eligible institution.
How to Apply for an ELFI Loan
The entire Education Loan Finance application process is online, and it can be completed in a matter of minutes. As soon as you’ve submitted an application, you’ll be assigned a Personal Loan Advisor. This person is your point of contact if you have any questions about your application or ELFI’s loan options, and they’ll stay with you through the life of your loan.
To apply for a private loan or refinance loan from Education Loan Finance, you’ll need to have these documents handy (as well as a way to scan them). If you’re applying with a cosigner, your cosigner should also be prepared to provide the same documentation:
- Paystubs documenting the last 30 days of payment, if you’re employed;
- Previous year’s W-2; and
- Government-issued identification (i.e., driver’s license or passport).
If you’re applying for a new private loan, ELFI will send your loan application information to your school to verify your enrollment status, financial aid package, and academic process.
Your school will then certify the amount you have left to cover your educational expenses (the amount you’re eligible to borrow from ELFI). Once that’s done, you’ll receive a request to accept your loan terms, and ELFI will send the funds to your school on your behalf.
Education Loan Finance: Summing Up
Education Loan Finance was previously known as a student loan refinancer only. But in 2019, ELFI has started making a name for itself as an originator of new private loans, as well.
If you’re seeking a reliable loan refinancing service, ELFI is one of the key options to consider. Backed by the dependable SouthEast Bank, Education Loan Finance may be new, but it isn’t an inexperienced lender. ELFI has been highly praised for its excellent customer service in comparison to other lenders and refinancers.
With the information provided in this Education Loan Finance Review and the additional information you can find on the ELFI website, you have everything you need to decide whether this is the right lender for you.
