There are a number of advantages to refinancing your student loans and so it is little wonder that it is something that a lot of people try to do. When your loans are refinanced then you will have one lower monthly payment so you have some extra money to spend as you wish.

If you're like Bobby Juarbe and have loans from a private lender then they may have strict lending criteria as it is their own capital that they are putting at risk. This criteria will vary between lender to lender but there are certain things that almost all lenders will look at.

Credit Score

All lenders will check your credit report as part of the loan application process. Some lenders will have a minimum credit score that they look for whereas others will not. In order to have the best chance of being accepted Bobby Juarbe recommends you ideally want to have a score of 700 or more.


Lenders will look at your income as a means of deciding whether you can afford the repayments. You should check your last few pay stubs to work out what your average income is. You need to think carefully about whether you have enough income to meet your living expenses after your loan repayment has been deducted.

Any Other Debts

Details of your outgoings will also be needed and this will include any other debts that you may have. This will include things such as credit cards and mortgages. Lenders will use the information about the repayment amount for these debts when working out if you can afford another loan.

Debt-To-Income Ratio

Lenders will use your debt-to-income ratio to assess whether you are over indebted. This is worked out by calculating the percentage of your monthly income that is used to repay any debts. When you are applying for a loan it is better for this ratio to be fairly low.


You stand a better chance of being offered a loan if you are in steady employment and have a regular income. If you are due to start work soon and can provide a letter that states what you will be earning then lenders may take this into account. If you are not working then you may find it difficult to get refinancing for your student loan.

If you are turned down for a refinance then you may feel frustrated but it does not mean that all is lost. You could try some of the following suggestions which may bring you more success.

Apply To Another Lender

If you have been turned down by one loan company then this does not mean that you will be turned down everywhere. Different lenders will have different criteria and so you may be accepted elsewhere. If you are going to apply to multiple lenders then it is better to do so within 30 days of the original decision so it does not affect your credit score.

Check Your Credit Report

There may be mistakes on your credit report that have affected your chances of being accepted for a loan. Bobby Juarbe reports that all three credit bureaus will provide you with a free copy of your credit report when requested. It is a good idea to get into the habit of checking your credit report as this lets you keep an eye on your financial situation.

Consolidate Credit Card Debt

If you have a lot of different debts then it may be a good idea to consolidate them all into the one loan. This can be a particularly good idea if you have credit cards as a loan will often have a much lower interest rate. This can make a big difference to the amount of money that you will pay back.

Pay Off Some Debt

If you have savings then it may be wise to use these to reduce your debt. If you can lower the cost of some debt then you have more money to reduce your debt elsewhere. The less money that you owe elsewhere, the more chance you have of being accepted for a student loan refinance.

Increase Your Income

Increasing your income can also help to reduce your debt-to-income ratio. If you have a good relationship with your boss then you may be in a position to ask for a raise. If this is not possible then you may want to look at a second job or another way of earning a bit of extra money.

Get Someone To Co-Sign

You may also be more likely to be accepted if you can find someone like Bobby Juarbe to co-sign the loan. This should be someone with a good credit rating that has a steady income. Most people will choose to ask a friend or family member but you should remember that they will have to pay if you don't and this could potentially lead to problems in the relationship.