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Take Advantage of Newrez’s Student Loan Cash-Out Program

Read Time: 2 Minutes Date Published: June 10, 2025

Are you weighed down by college debt? If you’re a graduate or parent with several student loans hanging over your head, Newrez has a product that may provide a simpler way for you to pay them off. Pull cash from your home’s equity and check your student debt off your to-do list.

Student Loan Cash-Out Refinance: How Does It Work?

A cash-out refinance allows homeowners to pull cash from the equity they’ve built up in their home. Oftentimes, homeowners use a cash-out refinance to fund a home renovation or consolidate credit card debt. However, our student loan cash-out program offers added perks.

Benefits of a Student Loan Cash-Out Refinance:

  • Reduced Fees: Qualified borrowers may get a waiver of fees that would otherwise apply to a general cash-out refinance.
  • Smooth Loan Payoff: Proceeds are paid directly to your student loan servicer, making your school loan payoff even easier.
  • Consolidate Debt: This product enables you to compile multiple student loans into one payment, simplifying debt management.
  • Potential Lower Interest Rate: Certain common student loans, such as unsubsidized federal loans, carry average interest rates upwards of 8%.1 By consolidating student loans into a cash-out refinance, you may be able to save money on interest.

Important Things to Know

A student loan cash-out refinance could be a great tool for anyone looking to bundle student loans into an easier way to pay—and perhaps even save on interest. However, there are some items you’ll want to be aware of:

  • Paid in Full: This product requires that any student loan tied to it be paid in full. Partial payments are not allowed.
  • Borrower Obligation: At least one borrower obligated on the subject property must also be obligated on the student loan being paid off.
  • Refinance Requirements: In order to qualify for the student loan cash-out refinance, you must be able to meet typical refinance requirements.
  • Not Just for Student Loans: While at least one student loan has to be paid off with the proceeds from this product, you may also be able to use it to pay off an existing first mortgage.

Knock Out Your Student Loans with Your Equity

Whether you’re the graduate or the parent of a graduate, you know how much work went into earning that degree—but no one wants to lug around a bunch of college debt. Newrez is here to provide a tool to help you make student loan repayment easier.

Want to find out if you qualify for a student loan cash-out refinance? Our loan experts are ready to answer all your questions. Reach out today.

 

References:

1 Federal Interest Rates and Fees | Federal Student Aid

This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.

Learn more in our other educational series.

We’ve assembled a treasure trove of jargon-free information to demystify home-financing and arm you with valuable insights and actionable options.

Why Newrez?

Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.

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Disclosures

By refinancing an existing loan, the total finance charges may be higher over the life of the loan.

††The rate on your existing mortgage will not change. The Newrez Home Equity Loan program requires borrower to obtain a second mortgage at current market rates. Loan amount based on underwriting guidelines. Minimum 660 credit score. Minimum and maximum loan amounts apply. Program financing only available on properties with one existing mortgage lien and subject to maximum loan-to-value ratio. Not available in all states or territories. Other terms and restrictions apply. Please contact us for more information.

^ This HELOC is an open-end line of credit, available on owner occupied properties, where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. An appraisal may also be required. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Not available in all states or territories. Contact Newrez for more information.