Virginia Student Loan Refinance and Private Loan Options

According to EducationData.org, Virginia student loans total a whopping $42.4 billion and the average student loan debt per borrower is $29,616.

Considering the need for student loans and also the state’s high debt amount, Virginia residents could benefit from student loan refinancing and looking into private loans, as needed.

Below is a breakdown of the top Virginia student loan refinance options as well as private student loans.

Virginia student loan refinance options

If you have Virginia student loans and want to get out of debt and save money, consider student loan refinancing. Refinancing is advantageous because you can slash your loan interest rate, saving lots of money over the course of repayment. That money you save can go directly toward the principal balance instead of just interest charges, shortening your repayment time.

It can be a solid opportunity if you find the right deal, but it’s important to know that it comes with a big risk. When you refinance a federal student loan, you aren’t eligible for benefits specific to federal loans anymore. That means no student loan forgiveness and no income-driven repayment options, either.

A 2016 article in the Richmond Time-Dispatch discussed the creation of the Virginia Student Loan Refinancing Authority, an entity that would help student loan borrowers with opportunities to refinance. As of 2018, legislation was left in limbo with no further action so the entity still doesn’t exist. Because of that, there aren’t state-specific Virginia student loan refinance options currently.

LendKey

Though the state of Virginia doesn’t have a refinancing authority, it’s possible to get a Virginia student loan refinance option from a community partner that works with LendKey. LendKey is an aggregator of student loan refinance options and partners with local institutions and credit unions, like Central Virginia Federal Credit Union, to offer student loan refinancing.

Other student loan refinance options

Aside from checking out Virginia student loan refinance options from banks and credit unions,  you can also see what’s available nationally to see if there are better rates. Many of these lenders also offer cash-back bonuses, which can make the process even more financially lucrative.

Here are some of the top student loan refinance lenders to research when checking out your options.

• Earnest. As a refinancing lender, Earnest stands out with its flexibility and radical repayment options, including a Rate Match of competitors' rates.
• ELFI. ELFI is good for borrowers who are looking for strong customer service to support them on their repayment journey.
• Credible. Want to check out multiple refinancing lenders and see how they stack up? You can use Credible to do just that.

Those are some of our top picks but if you want to compare and contrast all student loan refinance lenders, head over to our refinancing page for more info and see what cash bonuses you might qualify for.

Refinancing in a high cost-of-living area

When you refinance your student loans, depending on the term you choose, it can affect your debt-to-income ratio. Your debt-to-income (DTI) ratio is also used by mortgage lenders to see if you qualify for a loan.

Virginia housing prices can be high, with Zillow stating average home prices are currently a bit more than $300,000. If you’re interested in refinancing student loans and also qualifying for a mortgage, you may want to choose a 20-year repayment term. This can lower your DTI and help you qualify for a home loan.

Private Virginia student loans

If you’re headed to college and are in need of financial assistance, you want to review all of your options. Typically, you want to go after scholarships and grants first. Virginia actually has several financial award options including:

• Virginia Tuition Assistance Grant Program
• Virginia Guaranteed Assistance Program
• Virginia Commonwealth Award

After taking advantage of scholarships, you can then look into federal student loans. As a last option, you want to consider private student loans. That’s because federal student loans offer numerous borrower protections and repayment options.

But sometimes you still need private loans to cover all of your expenses. While the state of Virginia no longer offers student loans directly through their State Council of Higher Education (SCHEV), it’s possible to look at other community lenders for private Virginia student loans.

Sallie Mae

Private student loan giant Sallie Mae partners with local credit unions and banks to offer resident Virginia student loans.

Some of its lending partners charge  no origination fees or prepayment penalties and you can take advantage of rewards and interest rate reductions that are available. You can also check out Sallie Mae’s general private student loan options to see if it’s a good fit for your situation.

College Ave

College Ave offers numerous private student loans, including for undergraduate, graduate, parent and career loans. You can borrow up to the full cost of attendance (2), so you know you’re covered. You can choose from various repayment options, such as deferring while in school, and multiple repayment options as well from five to 15 years (3).

Check out College Ave private student loans.

Earnest

On top of student loan refinancing, Earnest also offers private student loans. You can choose from undergraduate, graduate, business, medical and law school loans. The lender has a Rate Match offer where it matches competitor's interest rates and has cosigned loan option as well. There are no fees and you can even skip a payment once a year.

Check out Earnest private student loans.

Virginia student loan forgiveness options

Aside from federal student loan forgiveness options such as Public Service Loan Forgiveness and from income-driven repayment plans, you can look into state-based forgiveness options.

Here are some Virginia student loan forgiveness options.

• Virginia State Loan Repayment Program (VA-SLRP). If you work in the medical field, you may qualify for up to $140,000 in student loan repayment assistance. You must commit to serving at an eligible Health Professional Shortage Area (HPSA) for two years.
• Virginia Loan Forgiveness Program (VLFP). Graduates of the University of Virginia Law School, who work in public service, might be eligible for 100% student loan forgiveness if they earn less than $65,000 and graduated 2013 or later. You can qualify if you earn less than $85,000, though if you earn between $65,000 and $85,000 the amount forgiven will be prorated based on income.
• Virginia Loan Commonwealth Plan (VLCP). Law students who graduated from the University of Virginia from 2013 and on can receive loan repayment assistance if they earn less than $85,000 from the Virginia Loan Commonwealth Plan. You must work in the private sector to be eligible. If you earn less than $65,000, your loans might be covered up to 100%; if you earn more, your forgiven amount will vary depending on your income.

Bottom line

If you’re a Virginia resident, looking to go to college or want to refinance your existing debt, you have options.

You can check out the Virginia student loan refinance options as well as the Virginia student loans offered by local lenders. You can also compare with national lenders as well to score the best rate possible.

Need help finding the right fit? Book a one-on-one consult.