Refinancing is a popular solution for students looking to save money on their student loans. The increasing popularity of student loan refinancing has resulted in a corresponding increase in the number of lenders offering this facility. Every lender sets their own requirements, interest rate and loan terms for refinancing. Spending some time researching and comparing multiple lenders and their offers is key to finding the best deal for your needs.

Before you sign any agreement, ask your student loan refinance lender these 11 questions.

#1. What’s my interest rate on the refinanced loan?

One of the primary reasons for refinancing student loans is to get a lower interest rate. The aim is to get the lowest interest rate possible for maximum savings. Even a marginal drop in the rate can result in substantial savings over the loan term. A lower rate can result in lower monthly payments too, which can help free up cash for other expenses.

What’s important to know is that you won’t necessarily get the rate published on the lender’s website. Every borrower gets a customized interest rate. This is based on your credit score and a few other factors. Ask each lender to do a soft credit pull and give you a potential quote. This will allow you to compare rates offered by multiple lenders without impacting your credit score.

#2. Do you charge any other fees?

Most lenders don’t charge any origination or loan fees. However, a few offer rock-bottom interest rates and charge assorted fees to make up for the low rate. This can add to the cost of the loan. If the fees are very high, the loan could end up being more expensive despite having the lowest interest rate. Knowing beforehand about all applicable fees can help you make more accurate comparisons.

#3. Do you offer fixed and variable rate loans?

All lenders offer fixed rate loans but only a few offer the variable rate option. With a fixed rate loan, the interest rate and monthly payments stay the same through the life of the loan. With a variable rate, the interest rate and monthly payments can fluctuate depending on market conditions. Both options have their pros and cons. If you’ve decided to get a variable rate loan, make sure to ask the lender if they offer this option.

#4. What are the loan terms I can choose from?

The loan term you choose will determine your monthly payments. It will also affect the total cost of your loan. Most lenders will give you the option to choose from 5, 10, 15, and 20 years but it’s a mistake to presume anything. Ask the lender and make sure there is an option that meets your refinancing goal.

#5. When do I have to start making payments?

Usually there is no grace period when you refinance student loans. You’ll be expected to start payments as soon as the loan is funded. Before going ahead with refinancing, it’s a good idea to ask the lender when your first payment would be due. If you plan to automate payments ask if you can set a due date that works best for you. This could be just after your monthly salary is deposited instead of at the end of the month.

#6. What is the minimum refinancing requirement?

Processing a loan takes a lot of time, effort, and man hours that cost the lender. Most lenders set a minimum refinancing requirement to make sure that it’s worth the cost. A larger amount also means higher profits more them. It’s important to ask this question at the outset. You don’t want to waste time with other details only to find that you don’t meet the lender’s minimum requirement.

#7. Do you have a minimum income requirement?

Generally, lenders only consider your credit score to determine whether or not you qualify for refinancing. There are a few however that will only approve your application if you earn a certain minimum monthly income. This is to make sure that you’ll be able to afford the monthly payments. Asking this question will help you save time filling out applications that aren’t likely to get approved.

#8. Do you offer any discounts?

Lenders often offer discounts if you meet certain requirements. Many lenders offer a 0.25% rate reduction for setting up automatic payments. Others may offer a further rate discount after you’ve made a certain number of consecutive, on-time payments. Even a small discount in the rate can help you save a lot on the overall cost of the loan.

#9. How will you apply any extra payments I make?

Putting any extra cash you’ve received towards paying off your loan is always a good idea. You’ll pay off your debt faster and also save hundreds or even thousands in accrued interest. However, when you make an extra payment, lenders generally put that money towards fees first. The balance is then put towards accrued interest and lastly towards your loan balance. This won’t help you save much. You must ask the lender if you have the option of requesting that extra payments are put towards paying off the principal. This will maximize your savings and also help you clear your debt faster.

#10. Do you offer any leniencies in case of financial hardship?

Unlike federal student loans, all private loans don’t come with deferment or forbearance options. Very few private lenders allow borrowers to pause payments in case of an illness, unemployment or any financial hardship. Having access to these options can help you ride your financial crisis and stay afloat. It also protects you from the more serious consequences of late payments.

#11. Do you offer cosigner release?

If you’re refinancing with a cosigner, you should ideally release your cosigner after you qualify on your own. It’s not fair to keep a cosigner responsible for your loan indefinitely. However, not all lenders offer a cosigner release option even if you do qualify. If you need a cosigner to quality with a particular lender, ask them if they will also allow you to remove your cosigner. Make sure to ask about the cosigner release requirements.

When exploring refinancing options, you’ll come across lenders offering a wide range of options. Weighing all the factors in search of the best lender can be overwhelming. Asking student loan refinance lenders these 11 questions will help to narrow down your shortlist and make this exercise less daunting.