Got Your MBA? Here’s How You Can Save Money on Your Student Loan after Graduation
As an international MBA graduate you worked hard to get into the right school, get the MBA to set you apart from your peers, and then to land the job you’ve always dreamed of.
You’re on track to a lucrative professional career. The catch? You likely spent thousands to get where you are. And now you’ve got years worth of student debt holding you back from starting the life you want.
The answer seems simple: just refinance your student loan. But unfortunately, for immigrants living and working in a new home country, your refinance options are going to be limited. Your domestic peers have opportunities to suit their needs but you’ve been held back because of your visa status.
Fortunately that’s about to change. You can save thousands of dollars by refinancing your student loan with the introduction of international lenders like Prodigy Finance. International lenders are focused on breaking down the traditional challenges of cross-border lending to give more people the opportunity to access financial independence.
How refinancing your international student loan can save you money
In short, refinance works like this: you consolidate your previous education loans into one loan by working with a new lender who buys your old loans and gives you a new one – usually with a better rate.
- Most lenders provide funds by assessing your current financial profile, which reflects your financial history over the years to the point of application.
- When you’re about to embark on a one or two year degree without income and without guaranteed employment post-graduation, you’re offered interest rates that reflect this stage of your life.
- It’s a different story after you’ve got your MBA and when you have full-time employment. Your profile is strengthened and you should be getting a rate that reflects this. Refinancing enables you to take advantage of this by offering you a loan based on your financial profile as it is now.
- It’s just smarter for your finances and your future to refinance education loans at a lower interest rate; you could save over $20,000* through refinancing with the same duration (or significantly more if you reduce the duration of your repayment cycle).
Let’s break down the math behind refinancing your international student loan:
|Current loan||Refinanced loan (option 1)||Refinanced loan (option 2)|
|Loan Term||15 years||15 years||7 years|
|Total cost of loan||$235,224.69||$156,555.88||$124,930.63|
|Lifetime savings from Current Loan||$20,756.89||$31,625.24|
Loan amounts calculated using the margin over 3-month US LIBOR (LIBOR varies over the duration of the loan). As of 1st October 2018, LIBOR is 2.39%.
If you were to keep the same 15-year loan repayment duration, but refinance with a lower APR, you could save $20,756 over the life of your loan. What’s more is if you reduce your loan term you could save $31,625 – with higher monthly payments.
And that’s just two examples; you might find that a loan repayment term somewhere in the middle is better for your budget.
The other benefits of refinancing your international student loan
Finances are usually a borrower’s priority when refinancing but it doesn’t have to stop there. There are additional benefits attached to refinancing. Here are three:
- Release your co-signer (without needing collateral)
There’s a good chance you needed a co-signer to secure your loan in the first place. But if you’re after financial independence it’s better to own your debts rather than share them.
Finding a lender who doesn’t require a co-signer or collateral means you’ll be independent of any repercussions associated with their financial well-being.
- Develop a local credit history
By choosing the right lender, you’ll also develop your local credit profile which is a must-have for international working MBA-graduates remaining in their country of study post-graduation. It will provide you with access to additional credit for future purchases or study.
- No penalties for early repayment
Once you’ve secured a post-grad job, you may be able to afford larger repayments than initially anticipated, allowing you to repay your loan sooner – as long as find a lender without repayment penalties.
Obviously, combining this with a lower interest rate benefits you even more – and allows the freedom to choose a refinancing product that doesn’t charge penalties.
What are your refinance options as an international MBA grad?
International lenders are changing the game for immigrants with student debt. And one lender in particular, has a refinance product that has been carefully curated and developed to meet your needs.
Refinancing your international student loan with Prodigy Finance
- Their refinancing is available to international business professionals like you, as well as engineering, law, or public policy post-grads who are currently living and working in the US or UK.
- As with all Prodigy Finance loans, no co-signer or collateral is needed.
- The application is completed online – it only takes 10 minutes and you’ll hear back instantly.
- Securing a refinancing quote from Prodigy Finance is commitment free and won’t affect your existing credit.
*Saving is based on a representative variable APR of 6.46%. To see illustrative savings calculation click here.
**Representative APR is the margin over 3-month US LIBOR (LIBOR varies over the duration of the loan). This margin rate is subject to your credit profile, your application and loan term.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority. Terms, conditions and eligibility criteria apply. PFUK_2017_REFI1