First Republic is a smaller bank that offers a personal line of credit that can be used to refinance student loans (but it's not limited to student loans).
What's amazing about First Republic is the awesome fixed rates they offer if you qualify. They highlight themselves as "industry-low" fixed rates, and we agree.
Remember, this is slightly different than a traditional student loan refinance product - it's a personal line of credit. Student loans are simply one use case. You can use the personal line of credit for anything.
Let's dive into First Republic Personal Line of Credit, the rates, fees, and bonus offers. You can also see how First Republic compares to other lenders here: Best Places To Refinance Student Loans.
Quick Summary
- Personal line of credit (which can be used for student loans and other things)
- Loan amounts from $60,000 to $350,000
- $300 bonus offer
First Republic Student Loans Details | |
|---|---|
Product Name | Personal Line Of Credit |
Min Loan Amount | $60,000 |
Max Loan Amount | $350,000 |
APR | As low as 2.25% APR |
Rate Type | Fixed Rate |
Loan Terms | 7, 10, 15 Year |
Promotions | Up to a $300 Bonus |
First Republic Personal Line Of Credit
First Republic offers one of the most competitive personal line of credit products out there. If you have a strong credit score and strong income, First Republic should be among your top choices to get a personal line of credit - which you can then use to pay off your student loans.
They offer a simple product, with ultra-low rates, and no fees.
Their goal with this product is to get you to become a banking customer - so to get the lowest rates you also need to establish a checking account at the bank. You can also only start the loan process via a private banker.
Luckily, we have a private banker, and you can reach out to him here: Eric Peterson at (619) 338-1505 or by email here: epeterson@firstrepublic.com. Make sure you mention The College Investor to get your $300 bonus!
You can also start the process here: First Republic Bank Personal Line of Credit.
First Republic Student Loans
It's important to note that First Republic doesn't offer a student loan product or student loan refinancing product specifically. You can use the Personal Line of Credit to refinance your student loans, but that's simply one use case.
Rates And Terms
What's awesome about First Republic is the low rates. They currently only offer fixed rate loans, and they keep it pretty simple.
Since it's a personal line of credit, the terms are slightly different than a normal student loan refinance product. You get a 2 year drawdown term - meaning you can spend the money anytime during the first two years. You can also repay any money during the first two years, and draw on it again if desired.
At the two year point, your loan is amoratized based on the term and rate you select.
They currently offer the following rates and terms:
- 7 Year: 2.25% APR
- 10 Year: 2.75% APR
- 15 Year: 3.50% APR
These rates include relationship-based pricing adjustments. To qualify for a 2.00% rate adjustment, applicants must open a First Republic ATM Rebate Checking account (“Account”) with automatic loan payment and direct deposit. To qualify for a 0.50% rate adjustment, borrower must deposit and maintain a minimum deposit balance in the Account. If the borrower does not meet these requirements, the rate adjustments will be removed and the rate will increase by 2.00% and 0.50% respectively.
However, there are no origination fees, prepayment penalties, or maintenance fees on this laon.
First Republic also has tough credit and income requirements to qualify. You should expect to have excellent credit to get a loan through them.
Loan Amounts
First Republic allows borrowers to borrow up to $350,000 when they take out a personal line of credit. This is a solid amount, but not the most we've seen.
The minimum amount is $60,000 - which is fairly high.
The loan can be used for refinancing student loan debt, credit card debt, or auto loans. You can also use the funds for home or medical expenses, family planning, or special celebrations.
There are limitations on what you can use the funds for. You cannot use the personal line of credit for: business or commercial uses, investing in the stock market, refinance existing First Republic loans, or direct payment for post-secondary education expenses (i.e. use it like a new student loan).
Loan Bonus Offers
First Republic is offering a solid bonus offer to make this personal loan of credit even more enticing. You can get a 2.00% rate adjustment by opening a checking account with automatic debit and direct deposit. You can also get a 0.50% to 0.75% rate adjustment by maintaining a minimum balance in the account.
The rate reduction works as follows:
Borrower must open a First Republic ATM Rebate Checking account. If the Account is closed, the rate will increase by 5.00%. Rates shown include relationship-based pricing adjustments of:
- 2.00% for maintaining automatic payments and direct deposit with the Account
- 0.50% for depositing and maintaining a deposit balance equal to the greater of 10% of the approved loan amount or $5,000 into the Account
- An additional 0.25% for depositing and maintaining a deposit balance equal to the greater of 20% of the approved loan amount or $10,000 into the Account.
Finally, if you call and get started with our personal banker, you'll get a $300 bonus. You can reach out to him here: Eric Peterson at (619) 338-1505 or by email here: epeterson@firstrepublic.com. Make sure you mention The College Investor to get your $300 bonus!
You can also start the application online here.
Restrictions
As you saw above in the rates and terms, there are definitely some restrictions, but they can be met by well qualified borrowers.
First Republic has several important restrictions that every potential applicant should be aware of before going forward. No deferment or forgiveness is offered. These loans are personal lines of credit, and so if you refinance a student loan, you lose access to any Federal programs you might be eligible for. Make sure you read our full guide on student loan consolidation and understand your options.
Loans may only be taken out in states where the company has locations and is accredited to do business. These states include:
- California
- New York
- Massachusetts
- Oregon
- Florida
- Connecticut
Finally, as we mentioned above, there are a lot of terms and conditions to get the lowest rates. You must also reach out to our personal banker to get started. Hopefully they move this process online soon, but that's how you need to get going for now.
Final Thoughts
First Republic offers a fantastic personal line of credit (that can be used for student loan refinancing) for those that qualify for it. These are some of the lowest fixed rate loans we've seen, and even though there are hoops to jump through to get them, they are worth it.
If you're ready to get started, contact our personal banker and start the process. You can reach out to him here: Eric Peterson at (619) 338-1505 or by email here: epeterson@firstrepublic.com. Make sure you mention The College Investor to get your $300 bonus!
First Republic Personal Line Of Credit
- Rates And Fees
- Application Process
- Customer Service
- Products and Services
Overall
Summary
First Republic may not be the best choice if you or your parents have low credit. Their tighter restrictions also make this a less than perfect choice for anyone who is uncertain about future employment status. A well-crafted website does offer some helpful sections that can help anyone take control of their financial status.
Pros
- A personal line of credit that offers low fixed rates
- Can be used for more than just student loan refinancing, including medical expenses, credit card debt, or auto loans
- $300 bonus for College Investor readers
Cons
- Strict credit qualifications
- High minimum balance to get started
- Requires a banking relationship to get the best rates
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.