First Republic Bank Student Loan Refinancing Review

Debt-holders looking to simplify the terms of their student loans and reduce payments often benefit from refinancing, a service that lets borrowers consolidate their loans under a single lender. Lenders vary greatly in the terms and conditions they offer to refinance student debt; some are suitable only for those with excellent income and credit, while others offer terms favorable for those with less solid financial footing.

First Republic Bank is a financial institution which offers student loan refinancing and is known in particular for their low rates and strict requirements. This article details the terms and conditions First Republic Bank offers borrowers, and whether or not they are a suitable choice for you.

What is First Republic Bank?

First Republic Bank is a private bank that offers a full suite of banking services, including student loan refinancing. First Republic offers some of the most competitive rates in the industry by maintaining strict standards on who can qualify and how the debt can be repaid. Since First Republic is a private bank, to qualify for the advertised refinancing rates one must have a checking account, maintain a $3,500 average monthly balance, and set up both automatic loan payment and direct deposit. If applicants don’t meet these requirements, the rate is increased by 5%.

Furthermore, to qualify for refinancing with First Republic, applicants must:

• Live near a First Republic Branch, since a checking account must be opened in person, not online. Most of First Republic’s branches are in California, with others in New York, Massachusetts, Connecticut, Florida, and Oregon.
• Have excellent credit history, including a credit score of 750 or higher and a history of paying off debts in a timely fashion.
• Have earned a postsecondary degree and borrowed at least $40,000 in student loans.
• Have a strong and consistent employment history for the previous 24 months before applying.

These requirements limit the pool of borrowers who qualify and lessen the risk associated with refinancing, allowing First Republic to keep rates low.

How does First Republic Bank work?

The first step to qualify for refinancing with First Republic is to enter your information in the rate estimator tool on their website. This will give you an idea of the rates available relative to the length of term you choose, with the option of 5, 7, 10, and 15-year terms of repayment.

Once you have submitted the rate estimate form and have chosen your preferred terms, you will be connected with a First Republic representative to discuss the terms, review your financial situation, and determine your eligibility. After this meeting, if it is determined you may be eligible and you wish to move forward, your banker will send you an electronic application. You may complete the application with a cosigner if the cosigner is a member of First Republic and has a checking account.

To complete the application, you will need to provide the following:

• A driver’s license, state ID, passport or military ID
• Financial statements from checking, savings, investment or retirement accounts
• Two most recent pay stubs, or proof of income if self-employed
• Most recent W-2 or tax return

After submitting an application with all these documents, you will find out if your application was approved. If approved you will meet with your assigned banker to sign the loan and open a checking account. At this meeting, you must give your banker a payoff statement for the loans you wish to refinance. With this information, First Republic will pay off your lenders and consolidate your loans into a single monthly payment.

This consolidation often reduces overall payments and simplifies the repayment process.

First Republic offers other perks once you refinance as well, including a prepayment rebate that allows you to recoup the interest you’ve paid on the loan if you repay within four years, up to 2% of the initial balance. There are no origination or annual fees on First Republic loans.

However, unlike most other financial institutions offering student loan refinancing, First Republic offers no hardship policies. This aspect goes along with First Republic’s strict income and employment requirements: since there are no provisions for deferment or forbearance, you will not be afforded relief if you fall behind payments, making consistent future earnings crucial if you apply to First Republic. More information on student loan refinancing terms and conditions to look out for can be found here.

What are the First Republic Bank Student Loan Refinancing options?

First Republic offers only fixed rate terms, though they do offer pricing adjustments based on the applicant’s particular situation and finances. Up to $300,000 in student loans are eligible for refinancing, with a minimum of $40,000, at a fixed rate of 1.95% to 4.45%. Applicants can choose between repayment terms of 5, 7, 10 and 15 years.

The lack of any hardship policies makes longer-term loans significantly higher-risk, though the fixed rate terms ensure that you will pay the same rate for the entire term. The rate is determined by the length of the term chosen and the specifics of the applicant’s finances, income, and credit score.

What are the First Republic Bank reviews saying?

First Republic is known for their highly competitive interest rates, and most reviews of their student loan refinancing service note this as the best quality of the service.  Reviewers have noted that First Republic offers excellent customer service. All borrowers are paired with their own personal banker who they can contact and interface with at any time, which is a big advantage over banks that force borrowers to work with customer service representatives or outsourced third-party representatives. Student Loan Planner gave First Republic a positive review, observing that the low rates are a reward if you are willing and able to establish a broader banking relationship with First Republic.

The difficulty of qualifying for refinancing and the strict terms involved, including the absence of any hardship policies, are the major downsides of First Republic observed by reviewers. NerdWallet gives First Republic a three-star rating for this reason, while Student Loan Hero notes that only those with the strongest financial history and credentials will qualify.

Is First Republic Bank Student Loan Refinancing the right option for me?

First Republic’s tough requirements mean they are not the ideal choice for everyone. Borrowers without steady employment, who have not yet earned a degree, or who have poor credit will likely not qualify for a loan with First Republic. International students will also likely have trouble getting a First Republic loan. You can learn more about specific considerations international students have to make when refinancing here.

However, for those with steady employment and income, a good credit history, and a strong future earning potential, First Republic can offer you significantly lower rates than many of the most reputable and well-known lenders in the industry. First Republic also offers all the features of a full suite bank like ATM access and some that are unusual among student loan refinancers like access to a personal banker. If low rates and high-quality service are what you value most, then refinancing with First Republic is a good choice.

The lack of any wiggle-room down the line regarding repayment is also a point of concern for prospective borrowers: it’s not just about your earnings now, but the risk of those earnings declining or growing inconsistent. Even if you meet the upfront requirements, there is a considerable risk if you have any uncertainty that your earnings will consistently remain strong. If it’s possible you might switch fields, return to school, or take a break from working within the term of your loan, First Republic is likely not the best option.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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