Refinancing is a good option for your student loans if you want to consolidate your loans and pay on one date rather than several, if you want to change the length of the loan, or if you want to try for a lower interest rate. In your search for the best student loan refinance options out there though, you may come across what is referred to as a “student loan refinance bonus.”
What is a Student Loan Refinance Bonus?
Many organizations use what is known as a referral or affiliate link for their partners. Say a YouTuber includes a link to a product they mentioned in their video in the description. If a viewer clicks on the link or buys the product, the YouTuber may get a bit of cash from the company. It depends on the agreement if they get money though and just how much they get.
A student loan refinance bonus works similarly. A website or a company has an agreement with a lender. If a person clicks through to the lender and refinances, the website or company will get a little bonus for advertising and directing potential customers there. In some cases though, the website will actually give you the bonus!
How Much is the Bonus?
The bonus you receive depends on the website that recommends the lender and the lender themselves. It can be just about any amount really and the amount you receive may depend on just how much you actually refinance with them. Many lenders though offer up to $1,000 in student loan refinance bonuses.
Should It Play a Role in your Refinance Strategy?
Although the bonus can be nice, it shouldn’t play a major role in your decision. You should instead be looking at things like interest rate, repayment terms, fees, and other agreements that will impact how much you pay, when you pay, and how long it will take you to pay back the loan. If you’re stuck between two very similar student loan refinance offers, then it may be worthwhile to compare the bonuses.
How Do You Find The Bonuses?
Not every site that has referral or affiliate links will give you the refinance bonuses – most will keep them as profit for themselves. Searching Google specifically for “Student Loan Refinance Bonus” will help you uncover some sites that do give you the profits though. It can also be helpful to look up that search term after you’ve landed on a lender to see if there is anything available for you out there under that specific lender.
A student loan refinance bonus can be a nice little bit of cash. However, although they can be over $1,000, you don’t want to choose the loan with the highest interest rate because it comes with the highest bonus. You’ll probably be paying well over $1,000 in that scenario. It’s important to look at the numbers and decide which is best for your finances.
