Ever heard of Splash Financial? They’re one of the most trusted online lending platforms out there and they’re making big waves in the world of student loan refinancing. If you have student loans, Splash Financial may be worth a look, especially considering its low interest rates and high reviews.
Most of my readers are PT students and medical students. And with tuition constantly on the rise, PTs are experiencing unprecedented levels of debt, from $100k-200k in many cases. But even an average amount of debt (around $36,000) could become unmanageable under the thumb of a high compound interest rate.
Refinancing your loans – even by one percentage point – could make a tremendous difference and save you tens of thousands of dollars over time.
Splash Financial Reviews: Overview
When you’re ready to refinance your student loans, Splash Financial can help you find competitive rates available to you. And keep in mind, the opinion expressed in this post reflects hundreds of Splash Financial reviews, as well as my personal experience checking my rate with them.
What is Splash Financial?
Launched in 2013, Splash Financial is a small online marketplace of fewer than 200 highly efficient employees serving over 100k customers. Their small size makes the application and approval process impossibly fast and customer service surprisingly pleasant.
Splash itself isn’t a lender, but they partner with banks, credit unions, and other lenders to find qualified applicants some of the lowest-possible interest rates within a range of loan terms, from 5 to 25 years**. You might be able to land a fixed rate between 4.96%-10.99% APR*, while variable rates range from 4.99%-10.89% APR*.
*These rates are subject to change and reflect a 0.25% discount you could earn using autopay. **Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 5.47% for a 12-year term would be $94.86. Variable loans feature repayment terms of 5 to 25 years. For example, the monthly payment for a sample $10,000 with an APR of 5.90% for a 15-year term would be $83.85. See Splash’s SLR Disclaimer page for more information.
Is Splash Financial Legit?
Yes, Splash Financial is legit! You’ll find dozens of positive reviews and recommendations from some of the biggest names in personal finance.
Besides helping you with a new loan offer, Splash will also directly facilitate the refinance process. Once you’ve settled on a rate, you’ll begin an application for the new loan with Splash lending partners. They’ll keep your information on file for future refinancing, including any other documents you may need to provide to lenders, such as proof of income or credit union membership.
Although the focus of this post is on student loans, Splash also offers refinancing of medical school loans at slightly different rates. And you don’t have to be refinancing loans to work with Splash Financial; they could similarly help you find a new student loan or personal loan.
Below are the terms for student loan refinancing:
- $5,000 loan minimum (no maximum)
- Federal or private loan refinancing
- Fixed (with autopay): 4.96% – 10.99%
- Fixed (without autopay): 5.08% – 11.24%
- Variable (with autopay): 4.99% – 10.89%
- Variable (without autopay): 4.78% – 10.89%
Medical School Student Loan Refinance rates are:
- Fixed (with autopay): 5.99% – 10.99% APR
- Variable (with autopay): 5.90% – 10.89% APR
Pros and Cons from Splash Financial Reviews
The overwhelming majority of Splash Financial reviews rave about their experience: 88% of users on TrustPilot gave Splash a 5-star rating. Additionally, Splash Financial earned an A- from the Better Business Bureau and a rating of 4.5 out of 5 from US News.
Pros
What’s so great about Splash Financial? Below are some of the perks users liked the most:
- Easy to use
- Excellent and timely customer service
- No origination fee or application fee
- Spousal refinancing available, with certain lending partners
Spousal refinancing allows you to combine your spouse’s credit and income with your own when applying for a new loan. This opportunity is atypical of financial companies and sets Splash apart from many of their competitors.
Cons
The cons to using Splash Financial are similar to other lending companies:
- Terms of loan vary based on lender
- Lenders are limited based on your financial standing
- Requires a minimum credit score (at least 640)
Because Splash does not issue the loan, they cannot guarantee a set of terms and conditions for your repayment period. Furthermore, Splash offers lenders from a limited selection of the lenders they partner with; you compare the rates and select a term length that works for you. A few other lending companies allow you to avoid a lender, so if the origin of your loan matters to you, you may want to use a different company.
While this doesn’t necessarily reflect poorly on Splash, another con is that you must have a credit score of at least 640 to get a loan through Splash’s lending partners.
How to get started with Splash Financial
If these Splash Financial reviews have won you over, or even just piqued your interest, head to their website for an estimated refinance rate. Checking your rate with them won’t affect your credit score (although applying for the loan itself will).
On the Student Loan Refinance page, click on “Check My Rate.” You’ll need to sign up for an account in order to proceed, but you won’t be asked for any payment information. Follow the prompts to enter your personal information, social security number, and debt information. You can even sync your loan accounts to your Splash account to seamlessly transfer your loan information.
After a few moments of buffering, the page will refresh with your refinancing options. I was given a sampling of terms – from 5 years to 20 years – with many rates, the lowest being 2.80% APR (as of my rate check in November 2021). If I sign up for autopay, I can reduce that rate by 0.25%.
Once you’ve settled on a rate, you can proceed further with the application. According to most of their customers, Splash’s loan application process is a breeze, with a customer service team available to assist Monday–Friday from 9am–9pm.
Keep in mind that the loan rates you see when you first check your rate are subject to change; you’ll lock in your rate when you submit your application. Depending on the current financial climate, the process of refinancing your student loans could take from a few days to a few weeks. You can expedite the process by ensuring you meet all the requirements and submit all necessary documents in a timely fashion.
Student Loan Refinance vs. Consolidation: What’s the Difference?
It’s easy to conflate the term “refinance” with “consolidation,” but they’re entirely different processes. The main commonality between refinancing and consolidation is the opportunity to reduce the number of loans borrowed. Instead of keeping track of, say, 10 separate loan amounts and interest rates, through refinancing and consolidation you can get just one loan with a fixed rate from a single lender.
Otherwise, there are some distinct differences between refinancing and consolidation, and your particular situation will help you determine which option is better for your finances.
Consolidation: Federal Loans only
Consolidation usually refers to a Direct Consolidation Loan, a service of Federal Student Aid. Because it’s federally funded, a consolidation loan can only apply to federal loans; private loans may not be consolidated into a Direct Consolidation Loan.
Furthermore, consolidation will not lower the rate of your loan. Your new rate will simply be a weighted average of your prior loans’ interest rates, rounded up to the nearest ⅛%. Typically, consolidation into a direct loan won’t save you a lot of money unless you switch from variable rates to one fixed rate at an opportune time in the market.
Refinance: Private or Federal Loans
Refinancing could help you tackle your student debt faster and more efficiently, whether you have federal or private loans. To refinance your loans, you’ll essentially take out a new loan from a private lender to pay off the student loan creditors. Additionally, since you’re taking out a new loan, you’ll (hopefully) land a lower rate.
Because loans grow every year, there are two ways refinancing could help you reduce the overall payoff amount: by 1) lowering the interest rate and 2) shortening the term. A shorter term will force you to pay the loan off in larger monthly payments and stunt the interest’s growth. The best way to pay off loans quickly is to adopt both these strategies, if you can afford the larger monthly payments.
Why Not Refinance?
The benefits of refinancing may seem universally promising, but it’s not for everyone. A private loan is not eligible for the same “perks” as federal loans, such as loan forgiveness and income-driven repayment plans. So if you come upon financial hardship during your repayment period, you may not have flexibility in reducing or deferring your payments.
Essentially, refinancing is best suited for borrowers who have excellent credit, steady cash flow, and a debt-to-income ratio of 1:1 or less. If you’re primarily interested in reorganizing your payments and reducing the sheer number of loans – and you have only federal loans – then consolidation might be a better option.
Physical Therapy Public Service Loan Forgiveness
If you work in the public sector as a PT, you may be eligible for loan forgiveness through the PSLF program. The path to loan forgiveness is not all fine and dandy, so be sure to check out this article to learn more about the pros and cons of going the PSLF route.
Whether you choose loan consolidation, loan forgiveness, or loan refinancing from Splash Financial, your student debt needn’t weigh you down. Check out the blog for more resources on paying down PT school debt!
Splash Financial does not offer financial advice. No personalized financial advice in this article is offered to the reader, nor does it constitute any financial relationship between the reader and the author of this article.
*Terms and Conditions apply.
See disclaimers at: https://www.splashfinancial.com/disclaimers/
Splash Financial, Inc. (NMLS #1630038), licensed by the DFPI under California Financing Law, license # 60DBO-102545
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. Our lending partners require the borrower to be a U.S. citizen in an eligible state to qualify. Some lenders allow the borrower to be a permanent resident in an eligible state to qualify. The borrower is required to meet applicable underwriting requirements based on specific lender criteria. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, loan forgiveness, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. Not all information is required by all lending partners were you to apply directly on their website. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements.
*Autopay Discount. Rates listed include a 0.25% autopay discount.
Fixed APR: Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed rate options range from 4.64% (without autopay) to 9.24% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Variable APR: Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 2.50% (with autopay) to 9.24% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Variable rates are derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001).
**Payment Disclosure. Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 5.47% for a 12-year term would be $94.86. Variable loans feature repayment terms of 5 to 25 years. For example, the monthly payment for a sample $10,000 with an APR of 5.90% for a 15-year term would be $83.85.
Credit Pull Disclosure. To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
