Splash Financial operates as an online platform. Specializing in student loan refinancing, it’s a virtual middleman that matches borrowers with banks and credit unions. Although a relatively new company, founded in 2013, Splash has handled more than 100,000 accounts and more than $6 billion in refinance applications, according to its website.
Refinancing is a tempting proposition: Average individual student loan debt was $38,792 in Q3 2020. PLUS loans disbursed between July 1, 2021 and June 30, 2022 had a fixed interest rate of 6.28% and subsidized and unsubsidized undergraduate loans at 3.73%. If you’re considering refinancing your student debt through Splash Financial, here’s what you need to know.
The benefits explained
- No loan maximum: Unlike many other lenders, Splash Financial has no cap on the amount you can refinance.
- Loan prequalification available: You can get a quote from Splash Financial by simply checking your credit report, which does not affect your credit score.
- Low interest rates: Splash Financial offers very competitive interest rates, with variable rates starting at 1.89% and fixed rates at 2.59%.
- Spouses can refinance loans together: Splash Financial is one of the only companies that can allow couples to refinance their loans jointly (depending on the lending partner). Not only does spousal refinance simplify repayment, but it can also be a great help for couples if only one is employed, as the lender will look at the couple’s combined income.
Disadvantages Explained
- Highly variable loan terms and policies: It is important to remember that Splash Financial partners with lenders, but is not a lender itself. And because it works with several different banks and credit unions, lender terms can vary widely, from repayment to financial hardship and forbearance to release of co-signers.
- Limited choice of lenders: You don’t have a choice of lenders; Splash simply matches you with the best match for you and you only learn their identity when you submit a complete application. Some lending platforms actually present you with multiple offers and let you choose which institution you want to work with.
- Membership in a credit union may be required: If you choose a loan from a credit union, you may need to join before you can be approved for refinancing.
- Death and Disability Release may not be available: Because Splash Financial is not a direct lender, it does not have a central policy for repaying loans. Instead, it’s up to its partners to decide how to handle loan discharges in extenuating circumstances. Depending on the lender, death and disability relief may not be an option.
Splash Financial Refinance Loans Available
Splash Financial works with its lending partners to offer variable and fixed interest rate refinance loans. Loans fall into two basic categories: general student loans and medical student loans.
Student Loan Refinance
Whether you have an associate’s degree, bachelor’s degree, or graduate degree, you can qualify for student loan refinance through Splash Financial. If you’re married, you and your spouse can refinance your loans together, or either partner can take on the other’s debt. Parents who have taken out student loans for their child’s education are also eligible for refinancing, and the child does not need to have graduated.
Splash Financial is one of the only companies that can allow couples to refinance their loans jointly (depending on the lending partner). Married couples can consolidate their loans and only have one loan to manage.
| Student loans | |
|---|---|
| Interest rate: | Fixed: 2.59%-8.44% Variable: 1.89%-11.82% |
| Loan amounts: | $5,000 or more (no maximum) |
| Loan conditions : | 5, 7, 8, 10, 12, 15, 20, 25 (variable loans only) years |
Medical Student Loan Refinance
Splash Financial actually started out as a medical school debt refinancer.
| Loans for medical schools | |
|---|---|
| Interest rate: | Fixed: 5.44% – 6.53% Variable: 5.34% – 6.43% |
| Loan amounts: | $5,000 or more |
| Loan conditions : | up to 20 years |
Loan Eligibility
To qualify for student loan refinance through Splash Financial, you must meet the following requirements:
- You must be a US citizen or permanent resident
- You must have an associate degree, bachelor’s degree, master’s degree or be a parent of a student
- You must have at least $5,000 in student loans to refinance
Is loan prequalification available?
You can use Splash Financial’s prequalification tool to check your rates in as little as two minutes. The process does not affect your credit score.
Loan fees
Splash Financial does not charge application fees, origination fees or prepayment penalties.
Since your loan is serviced by one of Splash Financial’s partner lenders, whether or not there are late fees or repayment charges depends on who your lender is.
Loan discounts
If you sign up for automatic payments, Splash Financial will apply a 0.25% rebate to your APR.
Refund options
With Splash Financial, as with most refinanced student loans, you don’t have multiple repayment options. you immediately start making principal and interest payments.
Splash Financial is offering a special grace for its medical school refinance loans. yet. When you refinance your medical school debt, you can only pay $100 per month for the duration of your residency or fellowship program plus six months, up to a maximum of 84 months. Once this period has expired, you must make full payment of principal and interest on your debt.
Rewards and Benefits
If you refer friends or family members to Splash Financial and they refinance their loans, you will both receive a $200 cash bonus. There is no limit to the amount you can receive.
Even if you are not a Splash Financial client yourself, you can earn money through its referral program. If you refer friends or family members to Splash Financial and they refinance their loans, you will both receive a $200 cash bonus.
Are co-signers required?
Splash Financial does not require applicants to have a co-signer in all cases, but having one can increase your chances of qualifying for a loan. The exact terms of the cosigner agreement depend on the individual lender.
Loan forbearance and release options
Splash Financial works with several different banks and credit unions to offer student loan refinance, so there is no one financial hardship and forbearance policy.
Before submitting your loan application, check the individual lender’s hardship policies to see if they offer loan forbearance and discharge in the event of death or disability.
Customer service
On Trustpilot, Splash Financial has a TrustScore of 4.8 (out of 5) with over 404 customer reviews.
If you have any questions during the application process, you can contact Splash Financial at [email protected] or 800-349-3938. However, once your application has been approved and disbursed, you should work directly with your lender if you are having issues with your account.
Apply for a Splash Financial Loan
If you decide to go ahead with refinancing through Splash Financial, you will need to provide the following information on the loan application:
- Social Security number
- Date of Birth
- Phone number
- E-mail address
- Current address
- Monthly income
- Housing costs
- Employer Information
- A copy of your diploma or transcripts
final verdict
For borrowers with large loan balances, such as medical students, Splash Financial offers competitive interest rates and connects you with multiple lenders. With no loan cap, you can find a lender to work with you, and couples in debt can combine their loans to streamline their payments. However, there is no consistency between Splash Financial’s partner lenders and terms vary widely. If you want more control over the lending experience, it’s best to go with another lender.
Methodology
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