What you need to know
- Student debtors can borrow anywhere between $5,000 and $250,000 using Figure Student Loan Refinancing services.
- Figure Student Loan Refinancing uses blockchain technology, which allows quick approval turnaround and a completely digital lending process. Apply for refinancing online in five minutes and get refinanced within five days.
- Figure bases its whole security system on blockchain technology. Although that technology makes the process of approval faster and easier, it hasn’t been widely tested, which can make some consumers uneasy when it comes to how their financial information is being managed.
Originally an online lender for mortgage and home equity loans, Figure Lending offers student loan refinancing for student debtors. This service can be appealing to those seeking an easier student loan refinancing process, as the company promises application and approval without the hassle of weeks-long waiting periods. Figure loans offer variable rates starting at 4.25% APR, which includes an autopay discount of 0.25%.
Basics of refinancing student loans with Figure
There are always a few basic comparisons you’ll want to make when deciding between refinancing lenders. Details such as fees, loan amounts and eligibility requirements can help rule out potential lenders if they don’t meet your needs. Here’s how Figure stacks up:
|Rate types||Fixed and variable|
|Terms||5, 7, 10, |
15 or 20 years
|Loan amounts||$5,000 to $250,000|
|Customer service||Phone or |
live chat online
|Deferment||If you return|
|Length of time|
to accept loan offer
Pros and cons of refinancing with Figure
Any student loan lender has its advantages and drawbacks, and Figure Lending is no exception. Consider the following before making your student loan refinancing decision.
Figure loans have a lot of positives. Here are some of the key features that make the lender appealing to student debtors:
- Figure offers a 0.25% APR discount when payments are made using autopay.
- Up to a 12-month forbearance period is available with Figure, allowing repayment flexibility for those who need it.
- There are no prepayment fees with Figure loans, meaning your money will go toward repaying your loan instead of unnecessary additional costs, which are common with many other lenders.
- Figure advertises its application process as only five minutes long, and it has a rapid five-day loan-approval system.
- While some lenders make debtors fill out a complete application before showing their rate, Figure allows applicants to see their rate before applying using a prequalification calculator.
The following points might cause borrowers to consider another lender over Figure:
- Figure isn’t available in New York or Minnesota.
- Because blockchain technology is relatively new, it lacks widespread testing. While 256-bit encryption is sufficient security for some borrowers, others feel more comfortable using older technology that has been proven to be secure over the years.
- Figure is a relatively new student loan refinancing lender, so it doesn’t have a lot of meaningful user reviews as of yet to verify the customer experience.
- You must have a minimum outstanding student loan balance of $5,000 to be eligible for Figure.
Figure loan refinance eligibility requirements
To be eligible for student loan refinancing through Figure lending, applicants must either be a citizen or permanent resident. Additionally, they must have graduated from a four-year or Title IV school. The minimum credit score for first liens is 680, and the minimum score for subordinate liens is 620.
Staying on a federal repayment plan could be a better option for you if you don’t have a steady income or excellent credit history. Many government-mandated repayment programs, such as Income-Based Repayment plans, determine your monthly payments based on your discretionary income and could better suit your payment needs. Remember, if you refinance federal student loans with a private lender you’ll lose any future federal repayment or forgiveness eligibility.
Figure application process information
As is the case with most lenders, Figure requires proof of residency and proof of employment before approving loans. Its online application process is promised to take five minutes or less and largely requires applicants to link their existing accounts to their Figure account and fill out the online application.
Here’s what the process will look like once you get to the Figure website:
1. Under the “Products” tab, select “Student Loan Refinance.” It should be on the top right of the white box that pops up.
2. Scroll to the bottom of the Student Loan Refinancing page until you reach the “Ready to get started?” section pictured below.
3. Select the yellow “Find My Rate” button, and you’ll be taken to the page pictured below. Fill out the information as prompted to get your rate, verify your identity, link servicers and sign the required documents.
After these steps are completed, you’ve officially applied for your new loan refinancing program with Figure Lending. Verifying the loan will take around five days, though it could take longer depending on the specifics of your case.
If you have trouble anywhere along the way, you can reach out to Figure’s customer service hotline or chat room to get help.
Should you refinance with Figure?
When deciding between Figure and other student loan refinancing lenders, consider your priorities. Is a newer lender with quick turnaround time and minimal human interaction appealing for you? Figure Lending might be the best option for you then. Are you looking for a more traditional lender with a brick-and-mortar establishment at which you can speak to a representative? In that case, Figure might not be the best option for you.
Additionally, be sure to thoroughly compare lending rates of your top choices. While other pros and cons of different lenders can be confusing, the amount of money you’ll be paying overall should weigh heavily in your decision.