Frequently Asked Questions
Who is eligible for a DRB Student Loan?
Working professionals with bachelors or graduate degrees, as well as parents who took out student loans for their children, whose children are working and completed bachelors or graduate degrees (U.S. citizens or permanent residents with a valid I-551 card only).
Can I refinance and/or consolidate with DRB if I have already refinanced/consolidated with another lender?
Yes, absolutely. DRB will be glad to refinance/consolidate your student loans even if you have already refinanced/consolidated your student loans with another lender.
What is DRB?
DRB stands for Darien Rowayton Bank, a well-capitalized FDIC-insured community bank based in Darien, Connecticut, a Fairfield County suburb located about 45 miles from midtown Manhattan. We specialize in serving professionals and executives, nationwide by internet and phone, in addition to our brick & mortar bank branches here in Connecticut.
Why should I refinance with DRB?
You can refinance and/or consolidate student loans (both graduate and undergraduate loans) at low rates, saving you a great deal of money.
How simple and quick will it be?
The refinancing process is actually quite simple and it is all done on-line:
- Fill out a short online application which takes approximately 5 minutes. Once you authorize a soft credit check, we provide preliminary interest rates if we have enough information to give you that feedback. This process can be immediate or it can take a few business days.
- Upload documentation (Photo ID, 2 recent pay stubs, proof of graduation, and loan statements indicating payoff amount) to your dashboard. You can submit them as soon as you have them.
- Once all documents are received and processed, DRB will provide approved interest rates (fixed/variable) for each qualified loan term. After you select your loan type on-line, an approval disclosure will appear. If you accept the approval disclosure, a final disclosure and promissory note will appear for your e-signature.
- DRB will then send checks or wire funds to your current lender(s) to pay off your student loans after the cancel by date of your final disclosure. You can choose to enable EFT payments from a bank account and receive a 0.25% discount on your loan. First DRB payment will be due one month from disbursement date.
What documents will I need to complete the application process?
1. Photo ID
2. 2 recent pay stubs or other proof of annual income (e.g., contract, tax forms)
3. Proof of graduation
4. Statements from your current student loan lender (payoff statements)
5. For medical professionals who have begun professional practice:
-License to practice
How is DRB able to offer such low rates? What’s the catch?
There is no catch. DRB recognizes that by completing your college or graduate degree and landing a professional job, you’ve earned lower student loan rates. We believe that working professionals with degrees have proven their ability to pay back student loans, and that’s why we offer such attractive low rates.
Does the DRB Student Loan refinance/consolidate Federal loans and private loans?
Yes, DRB refinances/consolidates Federal and private student loans. However, there are a few key benefits associated with Federal loans (and, to a lesser extent, private loans) which will go away after the refinance/consolidation transaction occurs. If you are refinancing any Federal Student Loans with us, you will no longer be able to take advantage of Federal Student Loan repayment, forgiveness or hardship options, including but not limited to Income Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE). For more information about these benefit programs and other Federal student loan programs, please visit https://studentloans.gov.
Can I still take advantage of federal benefits after I refinance with DRB?
If you are refinancing any Federal Student Loans with us, you will no longer be able to take advantage of Federal Student Loan repayment, forgiveness or hardship options, including but not limited to Income Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE). For more information about these benefit programs and other Federal student loan programs, please visit https://studentloans.gov.
Do I need to refinance/consolidate all my student loans? Can I choose which loans I do and do not wish to refinance/consolidate with DRB?
You do not need to refinance/consolidate all your student loans and are welcome to keep any of your current student loans. Once you apply, you will be given an opportunity to indicate to DRB which loans you would like to refinance/consolidate, and when the loan closes, DRB will pay off these loans.
Are there any fees for the DRB Student Refinance/Consolidation Loan?
None. No origination fees or prepayment penalties.
Do I need a cosigner?
You do not need a cosigner, but if you do not meet DRB’s credit underwriting criteria on your own, a cosigner can be used to improve the likelihood you will be approved for the DRB Loan.
Does DRB offer forbearance options in the event I lose my job and become unemployed?
Yes, if a borrower experiences economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan). DRB will review all forbearance requests. Only qualified hardship reasons may be approved such as involuntary job loss or unpaid maternity leave, and verification is required.
Does DRB forgive my loan in the event of borrower death or disability?
Yes, DRB will forgive all of the amounts owed under the loan if the borrower dies, and some or all of the amounts owed under the loan if the borrower demonstrates to DRB’s reasonable satisfaction a significant unanticipated permanent reduction in the borrower’s income due to permanent disability. DRB began offering this forgiveness benefit in the spring of 2015 and only loans originated after that point are eligible for it. If you are a current DRB borrower and are not sure if you are eligible for this benefit, please refer to your promissory note or contact DRB.
When is the right time to refinance?
If your rates are higher than DRB's, you should consider refinancing immediately. Once you refinance with DRB, your rates will go down and you will begin saving money right away.
Do I have to wait a certain amount of time before I can refinance?
No you do not need to wait. You can refinance while you are in your last semester of school as long as you have a job offer to begin work after school (with the exception of law students who cannot refinance with DRB until after they pass the bar). In addition, you do not need to wait until the end of any grace or deferment period. In fact, DRB will honor any previous grace or deferment period, so you can refinance now and repayment will not begin until the previous grace or deferment period ends.
What is the maximum rate I could pay on a variable rate loan (i.e the rate cap)?
Borrowers who take out a variable loan with a term of 5 to 10 years will have a maximum interest rate of 9%. Borrowers who take out a variable loan over 10 years will have a maximum interest rate of 10%.
How should I decide between fixed rate and variable rate with a rate cap?
While the variable rate option offers lower rates/payments initially – and it has a rate cap – you still risk a higher maximum rate than the fixed rate loan, should short term interest rates rise. You might be comfortable with this risk if you believe you will prepay the loan early or if you believe you will make enough money in the future to cover potentially higher payments. Fixed rates start out higher than variable rates, but are locked in for the term of the loan. You may also want to consider a hybrid approach – partial variable rate and partial fixed rate DRB Student Loans – to mitigate interest rate risk. To discuss your specific situation and/or the tradeoffs involved, please email us at email@example.com or call us at 1-855-245-0989.
Can I pick a term besides 5, 7, 10, 15, or 20 years?
Yes, we can give you any term you want 20 years or below, subject to our underwriting criteria. Just tell us what you want after you apply.
Can I refinance if I am still in a Grace or In-School Deferment Period?
Yes. DRB will honor Grace or In-School Deferment Periods set up with your previous lenders. You can refinance during these periods and your payments will not commence until these periods have expired. At the time of your application, you will need to indicate the expiration date on these periods.
What is the EFT discount? How can I get it?
It is very easy to get this discount. If you make your monthly payments via an automatic electronic fund transfer (EFT) from a bank account, then your rate will be decreased by 0.25%. If, however, you stop making automatic payments via EFT, then your rates will go back to their regular levels.
If I am an MD or DO still in residency, am I eligible for a DRB Student Refinance/Consolidation Loan?
Yes, we refinance loans for doctors while they are in residency even before they begin practicing as a physician. Residents may also be eligible to defer making full payments on their loan until 6 months after their residency and any fellowships. Total loan term including Residency, fellowship and grace must not exceed 20 years. The deferment period for residency, fellowship and grace must be approved and disclosed at time of application-you will not be able to extend the term of the loan after it is disbursed. If fellowship is determined after your loan is closed, you may be able to refinance with DRB at to take advantage of reduced payments during fellowship.
What is 3-Month LIBOR?
LIBOR ("London Inter-Bank Offered Rate") is a benchmark index used to calculate interest rates on variable rate loans. This index is published every day, in a publicly available source such as the Wall Street Journal's Money Rates section, for different terms or lengths of time (e.g., 1-month LIBOR, 3-month LIBOR). DRB's variable rate is calculated every three months by adding a fixed margin to the average of 3-month LIBOR over a 91-day period. The variable interest rate and monthly payment on a DRB variable rate loan will increase or decrease as the 3-month LIBOR index changes up or down.
If I am a Parent who took out a Student Loan for my child, am I eligible to refinance with DRB?
Absolutely, as long as your child is working and has completed their bachelors or graduate degree. You will have the option to refinance the loan in your name or into your child’s name. This can be done with or without a cosigner, depending on your child’s and your credit profiles.
Can DRB refinance student loans in any state?
Yes, DRB is able to refinance student loans in all 50 states.
Will it hurt my credit score if I apply to different student loan refinance lenders at the same time?
Not as much as you would think. Some borrowers are concerned about applying to multiple lenders (rate shopping) when looking to refinance their student loans, as they believe each credit pull that the various lenders initiate will lower their credit score. According to the Fair Isaac Corporation, however, if there are multiple student loan credit inquiries from various student loan lenders within a short period of time, these inquiries will be counted as one inquiry only, mitigating the impact on your credit score. More information can be found at http://www.myfico.com/crediteducation/creditchecks/inquiries.aspx.
Once I refinance my student loans with DRB, are my DRB loans considered student loans for tax purposes?
Yes, DRB Student Refinance loans are considered student loans for federal and state tax consideration. Note that you may or may not be eligible for interest deduction depending on your individual tax situation. You should consult your tax advisor for more information.
What is a payoff statement? How do I get one?
A payoff statement is a document from your current lender that tells us exactly how much we need to pay them in order to bring your balance with them down to $0. This is different from the monthly statement you receive, and is only generated when the borrower requests it from the lender either online or on the phone. Each lender has its own way of generating payoff statements and providing them to their borrowers. Below is a list of select lenders and how to generate payoff statements from them. If your lender is not on this list, we recommend calling them if you are not able to generate a payoff statement on their website.
American Education Services (AES)
- Go to https://login.aessuccess.org/accountAccess/index.cfm.
- Log in with your username and password.
- Select “Continue” and enter into your Account Summary.
- Select “Payments & Billing.”
- Select “Loan Payoff” (this can be found in the leftmost column).
- Select the loans that you want to request a payoff for.
- Select the 30-day payoff date from today’s date.
- Select “Request A Payoff Amount.”
- The system will then calculate your payoff amount total.
Federal Loan Servicing
- Go to https://accountaccess.myfedloan.org.
- Log in with your username and password.
- Select “Loan Payoff” under the Payments & Billing header.
- Select the loan that you wish to pay off.
- Click on the “Request A Payoff Amount” button.
- Enter your desired payoff information.
- Take a screenshot of the payoff statement
- Repeat this process for each of the loans that you wish to pay off.
- Go to https://www.mygreatlakes.org/.
- Click on the “Log In” button.
- Enter your personal user ID and click the “Continue” button.
- Enter your PIN number and click “Continue.”
- Enter your personal Password and click “Continue.”
- Select “Payments” in the top navigation bar, and then click on the first option in the dropdown menu titled “Manage Payments.”
- Click on “Calculate Payoff Amount.”
- Use the “Choose Payoff Date” field to select the date 30 days from today. Next click the “Calculate” button.
- Your 30-day Payoff Amount is shown below.
Missouri Higher Education Loan Authority (MOHELA)
- Go to https://www.mohela.com/.
- Enter your username and click the “Login” button.
- Enter your password and click on “Continue.”
- Select “Payoff Calculator” under the Payment Assistance tab.
- Select your preferred payoff method from the listed options (Online, Phone or Mail).
- Select your payoff date for 30 days from the current date.
- Select which loans you would like to pay off (you may choose more than one) and click on “Calculate.”
- Go to https://www.navient.com/
- Log in to your account with your personal username and password
- Click on Tools & Request>Go to Previous Website>Hover mouse over customer support in top right>Calculators>Payoff and enter payoff date
- Go to http://www.nelnet.com/home.aspx.
- Log in to your account with your personal username and password.
- Click on "View Payoff Details" in the "Account Snapshot" summary.
- Under "Select Number of Days" choose "30" to find your thirty (30) day pay-off amount.
- Go to https://www.salliemae.com/.
- Log in with your personal username and password.
- Select the loan that you would like a payoff quote for. This will take you to the “Loan Details” page.
- At the bottom of that page, select the Loan Payoff Calculator link.
- Enter the date for a 30-day payoff in the calculator.
- Click on “Calculate.”
- The calculator will then generate your payoff amount which is valid for the next 30 days.
- If you have questions or need assistance obtaining your payoff amount, you can contact Sallie Mae at 800-472-5543.
University Accounting Services (UAS)
- Have your Social Security number and zip code in hand ready.
- Call 800-999-6227.
- To speak with a customer service representative, press 3, and follow the instructions provided.
- To get a payoff amount, please contact customer service at (866) 869-1592.
- Logon to your Edfinancial account by following this link https://edfinancial.myloanmanager.com/Login.aspx.
- Click on the “View Payoff Details” tab next to your “Outstanding Balance” link in the “Account Snapshot” summary on the page.
- Under the “Select Number of Days” dropdown, choose “30” to find your thirty (30) day pay-off amount.
- Logon to your online personal account by following this link https://borrower.ecsi.net/.
- Select the “Balance and Billing” tab.
- Click on “Current Account Balance.”
- Add up the two dollar amounts listed under the “Current Balance” and “Current Interest” tabs. The sum of these two dollar amounts is your thirty (30) day pay-off amount.
- Georgia Student Finance Commission
- To access your information, call (770) 724-9000 or visit www.pathways2gsfa.org.
- Log in or create an account. (Anyone who has not logged on before February 2013 will have to create an account).
- Once you are logged in, click on the “Account Management” tab.
- Select “Loan Details.”
- Your thirty (30) day pay-off loan amount will appear on this page.
Granite State (GSMR)
- Logon to your GSMR account at https://gsmr.myloanmanager.com/.
- On this page you can view your current outstanding balance.
- If in repayment, take 30 days’ worth of daily interest payments then add this to your current outstanding balance in order to calculate your thirty (30) day pay-off amount.
- Kentucky Higher Education Student Loans Corporation (KSLC)
- Visit www.kheslc.com.
- Logon to your account.
- Click on “Loan Payoff Calculator” on the left hand side of the page.
- Enter 30 days into the calculator.
- Your 30 day pay-off amount will be displayed.
National Education Servicing (NES)
- Log on to your account
- On the main account page, under the demographic information tab will be the pay-off amount calculator
- Enter 30 days into the calculator in order to get your thirty (30) day pay-off amount.
North Texas Higher Education Authority (NTHEA)
- Login to your NTHEA account by following this link: https://www.nthea.com/loans/.
- Select the “Make a Payment” tab.
- There will be a box that says “special request for payment.” This is where you need to fill in the amount that has to be paid and the date that you would like to pay that amount. Set your amount to the remaining balance of the loan and the payment date to thirty (30) days from the current date.
South Carolina Student Loan (SCSL)
- Visit https://www.scstudentloan.org/.
- Logon to your account by clicking on the “Borrower Login” button in the top right-hand corner of the page.
- Click on the “Making a Payment” link and it will list you different pay-off scenario options.
- Look at the 30 day pay-off option.
Utah Higher Education Assistance Authority (UHEAA)
- Log on to view your account.
- From the 5 available tabs on the left side of the page, select “View Loan Details.”
- Your (30) day pay-off information should be displayed at the bottom of the page.