Refinancing is the replacement of an existing debt with another—usually at a better rate and term. Deciding whether to refinance your student loans depends entirely on you. The main benefits of refinancing means consolidating your student debt and, if you qualify, you may get better interest rates and longer repayment terms. This can mean smaller monthly payments. We've been reviewing student loan refinance companies since 2020. We looked at important factors from 23 top lenders, including loan types and amounts, annual percentage rates (APRs), availability, repayment options, and more, to help you find the best options. Earnest tops our list of best student loan refinance companies, offering qualified borrowers fixed and variable interest rates starting at 4.89% and 5.89%, respectively. Think twice before you refinance federal student loans. You’ll lose all of the generous federal benefits and options if you do, such as forbearance, and you’ll begin repayment on your loans immediately. Best Student Loan Refinance Companies for September 2024 Best Student Loan Refinance Companies for September 2024 The Bottom Line Compare Providers How to Choose Pros and Cons How to Apply Alternatives to Student Loan Refinancing Why You Should Trust Us FAQs Guide to Student Loan Refinancing Why We Chose It Earnest has two big factors going for it compared with other lenders. First, it grants you the option to skip one payment every 12 months, provided you’ve made all your payments on time in the interim. But, that doesn't mean it’s not a free pass because that payment is tacked onto the end of your loan, and still accrues interest. Each time you use it, it reduces the amount of forbearance available by one month. Keep in mind that you only have a maximum of 12 months available at the beginning. This adds extra flexibility to your budget if needed, and that’s always a plus. Earnest also offers an unparalleled range of options, so it doesn't force you to choose from a few term options at five-year intervals. The company offers several options for repayment terms with intervals as short as one month, which allows you to find a payment amount that better fits your budget. Pros and Cons Pros Custom loan options Skip-a-payment option Available to international students with Prodigy loans Cons Restrictions for residents of some states Skip-a-payment option lowers forbearance length Repayment Options Eligibility Requirements Why We Chose It Credible isn’t a lender. Rather, it’s a marketplace that offers personalized prequalified rates with several companies at once.* In other words, it’s a student loan refinancing matchmaking company. It also helps people find other loan types. Credible is transparent about the lenders it works with so you know which ones to cross off your shopping list. With nine partner lenders in its network, it’s a fast and easy way to get your rate shopping done. It even offers a $200 best-rate guarantee, so if you find a better offer from a non-partner lender, Credible will reimburse you with a gift card. As with any loan marketplace, the downside is you’ll still need to research each company you’re matched with to see if it offers the features you’re looking for, if anything, beyond the lowest rate. Pros and Cons Pros Very low rates $200 best rate guarantee Good selection of lenders Cons Loan options may vary May need to join a credit union Some partner lenders are state-specific Repayment Options Repayment options vary depending on the lender that you’re matched with. If you've completed school, you will likely already be in repayment and continue paying immediately after refinancing. If you end up going back to school, options may include: Eligibility Requirements Why We Chose It Like Credible, Splash Financial is a student loan marketplace. Splash Financial, however, is specifically geared toward people looking to refinance their loans, and it works with an exclusive set of lenders. As such, you can compare rates from several lenders at once, although the exact details of which lenders are in Splash Financial’s network aren’t disclosed. Since Splash Financial only serves as an intermediary to connect you with other lenders, there aren’t too many downsides to using it. However, none of the lenders in its network offer refinancing options to those who have not finished their degree. Pros and Cons Pros Very low rates Affordable options for medical professionals Cons Not available if you didn’t complete your degree May need to join a credit union Repayment Options Eligibility Requirements Why We Chose It Private student loan lenders don’t have a particularly good reputation for offering many perks, especially when you compare them with federal student loans. SoFi is somewhat of an exception to that because it offers many borrower benefits, including special events, Los Angeles-based SoFi Stadium lounge access, and more. SoFi is also one of the few lenders that allows graduates to refinance student loans that their parents took out for their benefit in their names, thereby claiming responsibility for repayment. Be aware, however, that applying with a co-signer can add extra time to your loan approval timeline. And once listed on the loan, there’s no way to remove a co-signer unless you refinance again in your name alone. Pros and Cons Pros Career coaching, special events, and more Can refinance parent loans in your own name Cons Spouses can’t refinance loans together Applying with a co-signer may take more time Repayment Options Eligibility Requirements Why We Chose It The name Iowa Student Loan might fool you into thinking that student loan refinancing is only available to residents of the Hawkeye State. But, this nonprofit lender is available across the entire country, except for Maine. Its low rates make it a good refinancing option, but there are a few reasons why it's a strong candidate for people with parent student loans: Choosing a loan with these options can better protect you and your family. Pros and Cons Pros Flexible repayment plans Doesn’t require a completed degree Loan discharge for death or permanent disability Cons Doesn’t offer variable-rate loans Not available for DACA recipients Not available for residents of Maine Repayment Options Eligibility Requirements Why We Chose It Some professions are known for having an especially high price tag, like law and medicine. Laurel Road is one of a few companies that cater to high-balance borrowers, especially people in the medical profession. Laurel Road may offer special rate discounts and affordable $100 repayment plans for medical residents and fellows. You don’t necessarily have to be a doctor or an x-ray technician to benefit from Laurel Road’s refinancing options. It also offers different ways for others to save. The lender offers a larger suite of banking services, and if you sign up for these and meet certain requirements (and they’re generally not too hard to meet), you could qualify for even lower rates on your student loan refinance. Pros & Cons Pros Very low student loan refinance rates Kids can take over parent student loans Special benefits for healthcare professionals Cons Doesn’t offer deferment if you return to school Repayment Options Eligibility Requirements There are a lot of reasons to refinance your student loans, and some lenders are clear winners in specific instances. For example, if you’re trying to relieve your parents of the student loan burden they took out for your education, ISL Lending is a top choice. But, Earnest is a great all-around option for most borrowers to add to any rate-shopping checklist. It offers the highest degree of customization so you’re more likely to land on the best option for your budget, rather than being shoehorned into a small handful of options. That can help you pay off your loan even quicker and perhaps with lower interest so you can move on with your life. Keep in mind that you need to weigh the pros and cons of refinancing your student loans. While you may get better loan terms, there is a chance you can lose your federal student loan benefits. That's why you should do your due diligence before you decide to refinance your student debt. Student loan refinancing happens when you apply for a new loan to pay off your existing student loans. Borrowers tend to do this to lower their borrowing costs and get better terms, including lower monthly payments and a better interest rate. If you want to refinance your student loans, you'll have to apply with a private lender. Once your loan is approved, your existing loans are paid off and you begin making payments to the new lender. Keep in mind that refinancing means you lose any federal student loan protections if you qualified for them when you first applied for your loans. When looking at options to refinance your student loans, you want to compare providers to make sure you’re getting the best deal. Keep the following important factors in mind: After choosing the student loan provider that offers the best refinance rates and terms for your needs, you will need to apply to refinance your loan. This is typically done online or with an agent over the phone. You will need your identification, Social Security number (SSN), and your current student loan information, including your account number and payoff amount. You may also be asked for things like proof of graduation and current income. Having your finances in order makes the process go faster and increases your chances of getting a lower interest rate. Federal student loan rates are fixed, which means they stay the same for the life of the loan. As such, you know exactly how much you'll have to pay each month. Refinancing may change that—especially if you get a variable rate loan. Variable rates will probably change whenever the Federal Reserve adjusts the Fed funds rate. You can expect to less if the Fed lowers interest rates. But you run the risk of paying more when rates rise. Pros Lower interest rates: Lowers monthly payment if you qualify Lower monthly payments: Extending your term may result in smaller monthly payments One monthly payment: Consolidating multiple loans into one means one manageable payment Cons Loss of federal benefits and protections: Private lenders don't offer protections like student loan forgiveness You may not qualify: Low credit scores may disqualify you from refinancing or get you unfavorable terms You may pay more: Lower interest over a longer term means you may pay more in the end Make sure you understand all of the benefits and drawbacks of refinancing your student loans before you begin. This means doing your research and exploring any alternatives. Once you've decided that this is the right step for you, you may be wondering how you can apply for refinancing. Consider taking the following steps: Student loan refinancing makes sense for some people. But, you may find that it isn't the right option for you. If you don't want to lose the benefits associated with your federal student loans, consider the following alternatives: Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of student loan lenders. We collected thousands of data points across 23 lenders, including loan types, interest rates, fees, loan amounts, and repayment terms, to ensure that we help readers make the right borrowing decision for their education needs. Investopedia launched in 1999 and has helped millions of readers around the world become educated on personal finance. We've been helping borrowers find the best student loan refinance options since 2020. While you can refinance federal student loans—and even combine them with your private student loans—there are some drawbacks to consider. When you refinance your federal education debt, you'll lose federal benefits and protections. For example, you'll no longer be eligible for income-driven repayment plans, Public Service Loan Forgiveness, or federal forbearance or deferment programs. Refinancing may be worth it if your goal is to save money, but think carefully about the downsides before submitting your loan application. Many people had to take out student loans to get a degree and want to know if they should consider refinancing their student loans. Before deciding, consider your needs and assess your current situation. Think about if it’s a good time to refinance and consider what your current rate is, if you could potentially qualify for a lower rate and if any fees will be involved. However, it may make sense to hold off on refinancing your student loans if your income isn’t stable and your FICO score is low. You can refinance your student loans as many times as you wish as long as you qualify. It may make sense for you to refinance your student debt when your situation improves and/or when your credit score increases. This generally helps you get favorable terms, including better rates and a longer repayment schedule. Keep in mind that hard inquiries from lenders remain on your credit history and are seen by other lenders, and may look That depends on several factors. Refinancing your student debt (or any debt for that matter) may initially impact your credit score because you're adding a new inquiry to your credit report. This may have a small effect on your credit score for a short time. Your credit can take a nosedive if you miss payments or stop paying your new loan altogether. That's why it's always important to make sure that you're keeping up with your payments every month. Not all lenders publicly list their minimum credit score requirements. Of the lenders that we looked at while researching this article (who disclose this information), Earnest has the lowest requirement. To qualify for a loan from Earnest, you'll need a minimum credit score of 650. You may still be able to qualify for a loan with a lower credit score if you have a cosigner on your application. Student loan consolidation and student loan refinancing may sound similar, but they're very different terms. Although they're both loan payoff options, student loan consolidation refers to federal Direct Consolidation Loans. With a Direct Consolidation Loan, you can combine your eligible federal student loans. Repayment terms can be as long as 30 years, and your interest rate is based on the weighted average of your current interest rates. With student loan refinancing, you work with a private lender to take out a loan for the existing debt. When you refinance, you'll lose federal loan benefits. However, you can qualify for a lower interest rate and save money over time. That depends on several factors. Some lenders can approve you as soon as the same day while others may have more stringent lending conditions, which could take up to several weeks. To make the process go more smoothly and to avoid delays, make sure you have all your documents prepared. We researched and reviewed 23 lenders to find the best companies you see above on this list. While we write individual reviews for most companies, we do not always write reviews for companies we would not recommend. Below are the companies we researched along with links to individual company reviews to help you learn more before making a decision: Advantage Education Loans, Brazos, Citizens Bank, College Ave, Credible,Discover, Earnest, Education Loan Finance (ELFI), EDvestinU, Iowa Student Loan (ISL) Education Lending, Juno, Laurel Road, Lendkey, MEFA, MPower, NaviRefi, Navy Federal, Nelnet Bank (U-Fi), PenFed, PNC, Rhode Island Student Loan Authority, SoFi, Splash Financial *Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circ*mstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Earnest. "Refinance Student Loans." Earnest. "What Is the Minimum and Maximum Student Loan Balance Earnest Can Refinance?" Earnest. "Why Didn’t I Get Approved for All Loan Terms? | Student Loan Refinancing." Earnest. "How Do I Skip a Payment and When Am I Eligible To Do So? | Repaying Your Loan." Earnest. "How Can I Apply for Forbearance? | Student Loan Refinancing." Earnest. "Student Loan Calculator." Earnest. "What Are My Repayment Options if I Cannot Make a Payment? | Student Loan Refinancing." Earnest. "What Is Biweekly Auto Pay? | Student Loan Refinancing." Earnest. "Eligibility Guide & Requirements." Credible. "Student Loan Refinancing." Credible. "Credible Best Rate Guarantee." Splash. "Put Us to Work on Those Student Loans." Splash. "Frequently Asked Questions." Click "How Much Can I Borrow for Student Loan Refinance?" Splash Financial. "Refinance Medical School Loans." SoFi. "Refinance Student Loan Rates." SoFi. "What Is the Minimum and Maximum Amount I Can Borrow with SoFi?" SoFi. "Refinance Student Loan Rates." SoFi. "SoFi Member Benefits." SoFi. "Frequently Asked Questions." SoFi. "Info Center." SoFi. "Options To Postpone Repayments." SoFi. "Eligibility Criteria." ISL Education Lending. "Student Loan Refinance." ISL Education Lending. “It's Time for Student Loan Repayment. Now What?” ISL Education Lending. "Funding Private Student Loans." ISL Education Lending. “Parent Loan Refinance.” Laurel Road. "Refinance Student Loans." Laurel Road. "Medical Residents Student Loan Refinance." Laurel Road. "Checking + Student Loan Refi." Laurel Road. “Coronavirus (COVID-19) Response.” Laurel Road. “How to Qualify for Student Loan Refinancing.” Federal Student Aid. "When it comes to paying for college, career school, or graduate school, federal student loans can offer several advantages over private student loans." Federal Student Aid. "Consolidating Student Loans." Federal Student Aid. "Public Service Loan Forgiveness (PSLF)." Related Terms What Is Public Service Loan Forgiveness (PSLF)? A Complete Guide Public Service Loan Forgiveness (PSLF) allows eligible federal student loan borrowers to have some of their debt forgiven when certain conditions are met. more Stafford Loan: What It Means, How It Works A Stafford loan is a type of fixed-rate loan available to college and university undergraduate, graduate, and professional students attending college at least half-time. more FAFSA Award Letter: What It Is, How It Works An award letter is the FAFSA documentation sent from a college or university to the student that details how much financial support the student is eligible for. more Income-Share Agreement (ISA): Meaning, Pros and Cons An income-share agreement (ISA) is a contract that allows a student to receive upfront money for college in exchange for a fixed percentage of their future income. more Student Aid Index (SAI): What it is, How it Works, How it's Used Student Aid Index (SAI) is the name for the factor that determines needs-based financial aid—and there have been several changes to the equation. more Cost of Attendance (COA): Meaning, Overview, and FAQ Cost of attendance (COA) at a college includes tuition, room and board, fees, and other expenses. The total is used to calculate a student's financial aid needs. moreBest Student Loan Refinance Companies for September 2024
Best Overall : Earnest
Refinancing Marketplace : Credible
Best Rates : Splash Financial
Best Benefits : SoFi
Best for Parent Loans : ISL Lending
Best for Large Balances : Laurel Road
The Bottom Line
Compare the Best Student Loan Refinance Companies
Company Interest Rate Loan Terms Maximum Loan Amount Minimum Credit Score Earnest Best Overall 4.89%–9.74% fixed, 5.89%-9.74% variable (autopay included) 5–20 years $500,000 665 Credible Best Refinancing Marketplace 4.84%–10.99% fixed, 5.28%-12.45% variable (autopay included) 5–20 years $750,000 700 for best rates (some lenders may accept lower scores) Splash Financial Best Rates 4.84%–9.99% fixed, 5.89%-9.99% variable (autopay included) Not disclosed None Not disclosed SoFi Best Benefits 4.99%–9.99% fixed, 6.24%-9.99% variable (autopay included) 5–20 years None Not disclosed ISL Lending Best for Parent Loans 6.93%–11.57% 7–20 years $300,000 670 Laurel Road Best for Large Balances 4.99%–8.90% fixed, 5.09%-9.00% variable, (autopayincluded) 5–20 years None Not disclosed Guide to Choosing Student Loan Refinance Companies
What Is Student Loan Refinancing?
How to Compare Student Refinance Loans
FICO Credit Score Ranges Rating Score Range Excellent 800-850 Very Good 740-799 Good 670-739 Fair 580-669 Poor 300-579 No Credit Not enough data to score How to Refinance Your Student Loan
Pros and Cons of Student Loan Refinancing
How to Apply for Student Loan Refinancing
Alternatives to Student Loan Refinancing
Why You Should Trust Us
Frequently Asked Questions
Can You Refinance Federal Student Loans?
Should You Consider Refinancing Your Student Loan?
Can I Refinance a Student Loan More Than Once?
Does Refinancing Hurt my Credit?
What Credit Score Do You Need to Refinance Your Student Loans?
What's the Difference Between Student Loan Consolidation and Refinance?
How Long Does It Take to Refinance Student Loans?
Companies We Reviewed
Guide to Student Loan Refinancing
FAQs
What is the best student loan refinance rate? ›
Company | Forbes Advisor Rating | Fixed APR |
---|---|---|
SoFi® | 4.5 | 4.99% to 9.99%* |
Citizens Bank | 4.0 | 5.89% to 10.99% |
Rhode Island Student Loan Authority | 3.5 | 6.34% to 8.99% |
Education Loan Finance | 3.5 | 4.84% to 8.69% |
All federal student loans for undergraduates currently have an interest rate of 6.53 percent for the 2024-25 school year, while unsubsidized and Direct PLUS loans for graduate students have interest rates of 8.08 percent or 9.08 percent, respectively.
Is it hard to get approved for student loan refinance? ›Key takeaways. In order to refinance a student loan, lenders tend to require a strong credit score, a stable income, a degree and a decent debt-to-income ratio. Lenders require a minimum refinancing amount, which is the amount you still have to pay on the loan. This is so the lender can make enough interest.
Who is the best person to talk to about student loans? ›Start with your student loan servicer
The federal government and many private lenders assign each borrower a student loan servicer. Your servicer should be your first point of contact for student loan help. You can find your federal student loan servicer by logging into your My Federal Student Aid account.
Today's loan refinance rates are significantly higher, making it more difficult to find substantial enough savings through refinancing to justify the loss of the federal protections, including loan forbearance and the ability to access federal income-driven repayment plans.
Who is best to go through to consolidate a student loan? ›Lender | Fixed APR | |
---|---|---|
View Disclosure | SoFi 4.4 | 4.99% to 9.99% with autopay |
View Disclosure | Education Loan Finance 4.7 | 4.84% to 8.44% |
View Disclosure | LendKey 4.6 | 5.24% to 9.35% with autopay |
View Disclosure | PNC 4.2 | 6.99% to 13.94% with autopay* |
Here are some reasons to avoid a student loan refinance: You don't qualify for a lower interest rate. The main benefit of refinancing is lowering your student loan interest rate. If you don't see or qualify for a better rate, it's best to stick with your current lender.
Who to talk to about refinancing student loans? ›Make sure you visit all three major lending sources: banks, credit unions and online lenders. Evaluate the loan terms and choose your lender: Choose a lender whose terms align best with your needs and goals. Prepare your documents and fill out the application: Get your paperwork ready and apply.
Why do I keep getting denied to refinance student loans? ›Payment and Credit History
Credit isn't the only factor in whether you get approved or denied. The lender will also pay special attention to your payment and credit history. If you've missed several payments in the past or made a late payment, student loan refinance lenders are more likely to reject your application.
Access: Most students are eligible for federal student loans. There is no credit check (except for Parent PLUS loans). You will not need a co-signer, which private loans typically require.
Should I get a financial advisor for student loans? ›
No matter if you're a graduate or undergraduate, a student loan financial advisor can help you get the best possible strategy to pay off your loan according to your current situation.
Who can help me with student loan questions? ›call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
What is a good rate for student loan interest? ›Graduate and MBA loans: Variable rates: 5.37% - 14.97% APR and Fixed rates: 4.25% – 14.48% APR with the loan term of 15 years. Lowest rates shown include the auto debit discount. Advertised APRs for Graduate School Loan and MBA Loans assume a $10,000 loan with a 2-year in-school period.
Is it a good idea to refinance a federal student loan? ›In general, refinancing federal student loans is not a good idea. When you refinance federal debt, you lose access to government programs, such as income-driven repayment plans, student loan forgiveness, and deferment and forbearance.
What is a good refinance rate? ›30 year fixed refinance | 6.40% |
---|---|
15 year fixed refinance | 5.79% |
10 year fixed refinance | 5.82% |
5/1 ARM refinance | 5.91% |
Courtney's Zero-Percent Student Loan Refinancing Act would: Allow student loan borrowers to refinance their federal loans to 0% – all eligible federal FFEL, Direct, Perkins, and Public Health Service Act student loan borrowers could refinance their high-interest loans down to 0% through December 31, 2024.