Brazos Student Loan Refinancing Review

Brazos Higher Education is a nonprofit lender offering student loan refinancing exclusively to Texas residents. The company has been in business for more than 40 years and has issued $30 billion in loans.

Brazos provides competitive rates and flexible terms. If you've graduated and built a solid income and credit history, refinancing with Brazos could help you save money and manage your student debt more efficiently. This review will help you determine if Brazos is the right choice for you. 

Best for: Texas residents

Brazos is a nonprofit lender based in Texas, offering student loan refinancing only to Texas residents or those attending school there. Eligible borrowers can take advantage of benefits that many private lenders don't offer, like low interest rates, no fees, and flexible repayment options. Brazos also provides forbearance during financial hardship or military service, giving borrowers extra support when they need it most.

How to qualify

Brazos has strict eligibility requirements compared with many other private lenders. To qualify for refinancing, you'll need to meet the following criteria:

• Be a Texas resident.
• Be a U.S. citizen, permanent resident, DACA recipient, or student visa holder with a U.S. cosigner.
• Be at least 18 years old.
• Have a minimum annual income of $60,000, or $30,000 if applying with a cosigner.
• Maintain a FICO score of at least 720, or 690 if you have a cosigner.
• Be the primary borrower on the loans you're refinancing.

If you apply with a cosigner, they must also meet credit, income, and citizenship requirements. Cosigners need a minimum credit score of 720, an income of at least $60,000, and must also be Texas residents.

Check out: Best Student Loan Refinance Companies of 2024

Repayment

Repayment for Brazos refinance loans begins about 45 days after your loan is disbursed. Brazos stands out by offering more repayment term options than most lenders, with terms of 5, 7, 10, 15, or 20 years. Choosing a longer term will lower your monthly payments, but you'll pay more in interest over time. Opting for a shorter term means higher monthly payments but less interest overall.

If you encounter financial difficulties or major life events, Brazos offers forbearance options. Forbearance allows you to temporarily pause your loan payments without going into default.

Here are the forbearance options Brazos offers:

• Economic hardship: Defer payments for up to 3 months at a time, with a maximum of 12 months total.
• Active duty military: Forbearance is available if you're called to active military service.
• Natural disaster: If you're impacted by a natural disaster, you can defer your payments during that time.

Notable benefits

Brazos offers several perks that make it a strong choice for refinancing:

• Competitive interest rates thanks to its non-profit status.
• 0.25 percentage point discount when you enroll in autopay.
• No application, origination, or prepayment fees.
• $200 refer-a-friend bonus with no limit on referrals.
• Multiple forbearance options, including military, economic hardship, and natural disaster forbearance.

Pros and cons

Here are the pros and cons of refinancing student loans with Brazos.

Should I refinance with Brazos?

Refinancing with Brazos could be a smart move if you meet their requirements and are looking for specific benefits. Consider Brazos if:

• You're a Texas resident: Brazos offers competitive rates thanks to its nonprofit status. However, you must either live in Texas or attend a Texas school to qualify, which excludes borrowers from other states.
• You don't need a cosigner: Brazos doesn't offer cosigner release, meaning if you apply with a cosigner, they will stay responsible for the loan until it's paid off. If having the option to remove a cosigner later on is important to you, Brazos might not be the best fit.
• You want flexible repayment options: Brazos offers five repayment terms (5, 7, 10, 15, and 20 years). This flexibility allows you to choose a term that fits your budget-shorter terms help you pay off the loan faster, while longer terms lower your monthly payments but cost more in interest over time.
• You have strong credit and a stable income: Brazos is best suited for borrowers with a solid financial profile. You'll need a credit score of at least 720 (or 690 with a cosigner) and a steady income to qualify. Since Brazos doesn't offer a prequalification option, you won't be able to check your potential rates without a hard credit inquiry, so it's important to apply only if your credit and income are strong enough to meet their standards.

How to refinance with Brazos

Since Brazos doesn't offer a prequalification process, you won't be able to check your estimated rates before applying.

To get started with refinancing, visit the Brazos website and click the "Apply Now" button. You'll need the following information to complete your application:

• Proof of Texas residency (such as a state ID or driver's license).
• Your Social Security number.
• Proof of income, which could include recent pay stubs, 1099 forms, or your latest tax return, depending on your income source.
• The most recent payoff statement for each loan you want to refinance, which shows the total payoff amount.
• Proof of graduation from an eligible school, like a diploma or transcript.

Brazos will perform a hard credit check when you apply, which is likely to cause a temporary drop in your credit score. Once your application is submitted, you'll receive loan offers and can choose between fixed or variable interest rates and repayment terms ranging from 5 to 20 years.

Current student loan refinance rates

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Methodology

Credible evaluates student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners and via email support. We verified each data point to make sure it was accurate at the time of publication.