Best Student Loan Refinance Companies of March 2024 (2024)

If you're grappling with student loan debt, you're not alone. Millions of students face the challenge of managing their loans post-graduation. Among the options to consider are student loan consolidation and refinancing student loans.

And both offer potential solutions, but which is right for you?

Consolidation involves merging multiple loans into one, which can simplify your payments, especially if you have loans with varying interest rates and terms. On the other hand, refinancing involves taking out a new loan to replace your current one. This can potentially offer a lower interest rate, saving you money in the long run.

With numerous student loan refinancing companies available, selecting the right one can be daunting. To help, we've compiled a list of the top student loan refinancing companies to aid in your decision-making

Benefits of Refinancing Your Student Loans with a New Lender

When considering refinancing your student loans with a new lender, it's essential to take into account the unique benefits each lender offers. Many refinancing companies provide options such as bi-weekly payments to reduce interest or even the flexibility to defer a payment during challenging months.

Before deciding on a lender, it's wise to research and compare the perks they offer. Refinancing can be an effective strategy to manage college debt, reduce monthly payments, and prevent delinquencies or wage garnishments due to unpaid student loans.

Refinancing has the potential to accelerate your journey towards a debt-free life, allowing you to build your savings faster. While this may not be the best choice for everyone, assessing the pros and cons can guide you in determining if refinancing aligns with your financial goals. One key advantage of refinancing is the potential to secure lower interest rates, translating to significant savings on your overall student loan balance.

Without further ado, let's delve into some top-recommended companies for refinancing.

Best Student Loan Refinance Companies

Splash Financial: Best for Low Rates

Splash Financial is an online marketplace that helps people refinance student loans.The Cleveland-based company was founded in 2013 to help students manage their student loan debt.Splash Financial uses its network of lenders to match borrowers with refinancing options.

By completing a single application on the Splash Financial website, borrowers can receive offers from these lenders.

Splash Financial offers refinancing options for:

• Federal, private, and Parent PLUS loans
• Medical residents
• College graduates with a four-year degree from a Title IV accredited institution or with an associate degree in an eligible field
• Refinancing your student loans and your spouse's together for one easy loan repayment

Why we like Splash Financial

Splash Financial offers some of the lowest rates and flexible medical resident refinancing.It also has no application or origination fees and no prepayment penalties.The minimum borrowing amount is $5,000 and there is no maximum.If you refinance $100,000 or more, you are eligible to receive a $500 cash bonus.

Splash Financial also stands out by offering a dedicated account representative and a prequalification process without a hard credit check. With a dedicated account representative, borrowers receive personalized support throughout the loan journey. This representative serves as a reliable point of contact, providing guidance, answering questions, and offering tailored solutions.

The prequalification process is convenient and credit-friendly. Borrowers can check their eligibility and view potential interest rates without impacting their credit score. This allows for exploring loan options with confidence and informed decision-making.

These features enhance the borrower experience, ensuring personalized assistance and transparency. Borrowers can rely on the support of a dedicated representative and evaluate loan options without credit score concerns. Splash Financial aims to provide borrowers with a seamless and borrower-friendly loan process.

SoFi

SoFi is a bank that also offers student loan refinancing, private student loans, personal loans, mortgages, and investing.SoFi's refinancing loans are good for borrowers who want a lot of benefits with their refinanced student loan.

SoFi can refinance federal and private student loans together to give you one convenient payment.However, the benefits and protections offered with federal student loans don't transfer when loans are refinanced by private lenders.

Why we like SoFi

SoFi is recognized for its competitive rates and array of benefits. They frequently offer competitive interest rates, which might save you money on your student loans in the long run. They provide various loan choices, including fixed and variable rates, so you can select terms that fit your requirements.

Additionally, SoFi extends unique perks such as career specialists, member events, and unemployment protection. Customer feedback for SoFi is predominantly positive, reflecting a high standard of customer service.

However, remember that your eligibility and the rates you're offered hinge on your creditworthiness and financial history. To decide if SoFi is ideal for you, compare their rates, terms, and benefits with other lenders. Think about your credit score, loan amount, and long-term financial objectives.

Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20- year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/01/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.

LendKey

LendKey makes student loan refinancing easy and straightforward. You can check your rate in as little as two minutes, and there's no impact to your credit score.

LendKey offers fixed and variable rates, with terms ranging from 5 to 20 years. You can choose the repayment plan that works best for you, and there are no origination or prepayment fees.

LendKey also offers a cosigner release option, so you can have your loans refinanced in your own name after you make 24 on-time payments.

Why we like LendKey

At LendKey, they work with community banks and credit unions to offer well-priced student loans to borrowers. By pooling money from multiple sources, they're able to provide competitive rates that help our customers save on their loan payments.

They also offer a unique loyalty discount. If you have an existing loan with one of their partner lenders, you may be eligible for a 0.25% interest rate reduction on your refinanced loan.

LendKey is a great choice if you're looking to save money on your student loans and want the option to release your cosigner after making on-time payments.

Earnest

Earnest is a student loan refinancing company that offers rates as low as 4.59% APR for variable rate loans and 4.47% APR for fixed rate loans. Loan terms are available in 5, 7, 10, 15, and 20 year increments. There are no promotions currently being offered.

To qualify for a loan with Earnest, you'll get some of the most flexible terms on the market. But to qualify you'll need to to have enough savings to cover at least two months of normal expenses, including housing.

There are some other requirements but if you are interested in student loan refinancing with Earnest — you can check your rate in 2 minutes with no impact to your credit score.

If you decide to move forward with Earnest, they will pay off your current student loans and send you one monthly bill.

You can choose to have autopay set up so that you never miss a payment, or make manual payments online or with a check. There are no origination, application, or prepayment fees associated with an Earnest loan.

Why we like Earnest

Earnest is on this list because it offers more flexibility than other student loan refinancing companies. You can pick any monthly payment and term between 5 to 20 years, which could save you a lot of money in the long run.

They also allow you to modify your loan, with favorable rates and terms that can save you money. You may refinance your loan for free, change the payment dates, even skip a payment once a year and make it up later if necessary.

One of the great things about Earnest is that they don't have set income requirements for borrowers. They also don't charge any fees, and offer unemployment protection to pause your monthly payments if you lose your job.

Perhaps one of the best things about Earnest is that you can still refinance your loans, even if you didn't finish your degree. As long as you meet their other lending criteria, they are willing to work with you.

College Ave

College Ave offers both private student loans and student loan refinancing. If you're interested in refinancing your student loans, College Ave could be a good option since they have really low rates.

And, remember that low rates are very important if you want to save money through refinancing. In fact, a lower interest rate is one of the primary reasons why people refinance their student loans.

Why we like College Ave

College Ave offers student loan refinance options that can seriously reduce your monthly payments and even the total cost of your loan.

With low fixed or variable interest rates, no application or origination fees, and even lower interest rates when you sign up for auto-pay, they have student loan refinance options designed to reduce your stress level.

View Current Rates

If you’re ready to refinance your student loans, then you can save thousands or lower your monthly payment.

Student loan refinancing saves you money and you could snag a lower interest rate, decrease your monthly payment, or both. But which lenders are the best to refinance and save money?

The following table shows other leading lenders that specialize in refinancing student loans and helping you save money on them.

Keep in mind that checking your rate is free, and won't affect your credit. The lenders above are the best in terms of rate and helping you lower your student loan payment for both private and federal student loans.

Should You Refinance Your Student Loans?

Making any decision that has to do with your finances is a big step and an important task. Finances are tricky, and it’s crucial to approach it in the right way and weigh your options. According to The Fed, student loan debt in the United States has recently reached $1.71 trillion, which means there are a fair amount of college graduates still in debt.

While no one likes to be in debt, lots of people are constantly looking for new ways to approach paying off their student loans in an efficient way. Refinancing your student loans is an option when trying to save money in the long run, so it’s definitely something to consider.

When you start to think about refinancing your student loans you may be on the fence about it because it may or may not be the best step for you. You’ll want to way the pros and cons of refinancing to decide what is the right decision for you and your finances.

Before making the decision you may want to think about a few things like, how much money you owe, what you can afford, and if there has been a change in your credit score or salary recently. Asking yourself these questions will help steer you in the right direction if you should refinance and who you should refinance with.

Overall, there are many benefits to refinancing your student loans that have a positive outcome on you and your financial state.

The Benefits of Refinancing Student Loans

If you have a secure job, emergency savings, strong credit, and are unlikely tobenefitfrom forgiveness options, it may be a choice worth considering if you're looking to lower your payments.

Let's look at the other benefits of refinancing your student loans.

1. Lower Monthly Payments

Let’s be honest: who doesn’t want to save money on their monthly bills? One of the most popular reasons people choose to refinance their student loans is to lower the monthly payments. When you refinance, you may have a lower monthly payment which will help you save money each month that can be used in other areas such as paying bills, paying the interest faster, or putting into a savings account. Lower payments mean you may be able to afford to make an extra payment every once in a while, and you’ll save overall on the amount you owe.

2. Simplify/Consolidate Loans

Depending on who you choose to refinance with and what type of loan you have, many companies give the option to consolidate multiple loans when you choose to refinance. Consolidating your student loans means you are taking different loans that have different interest rates and are combining them into one new loan. The benefit of this is you are simplifying your debt and making it easier on you every month for payment purposes. You’ll have one low monthly payment each month for your student loans instead of multiple to keep track of.

3. Release Co-signer

When you first started college and applied for student loans, you may have had someone co-sign to help your chances of getting approved. Your parents or another relative might have co-signed your loans if you didn’t have enough credit built up to make the process of borrowing easier. At the time, it may have been the only chance to attend college but now that you are out of college, you’re likely in a different financial situation with more credit built up and a yearly salary.

Refinancing will allow you to release your co-signer so you are the sole individual listed on the loan. This benefit is extremely important because your co-signer is just as responsible for the loan as you are. So now that you are capable of paying your loan, it is time to release your co-signer from legal obligation.

4. Change the Loan Term

Refinancing your student loans will allow you to explore more options for how long your loan term is. There will be options to either shorten your loan or extend the loan. The repayment plans could come in 5 to 20-year sections depending on what you are looking for.

It is important to look at your financial standing now and potential financial standing in the future before choosing a new loan term repayment plan. The longer the term, the more interest you will pay but the shorter the term means there will be a higher monthly payment. You can take the time to weigh the pros and cons of each option the refinancing company is giving you to decide what is the best choice.

5. Lower Interest Rate

Josh Hastings, founder of the personal finance blog MoneyLifeWax, says when it boils down to it, paying off student loans is a really simple process once you understand how student loans work.

“Another option is to look into refinancing to reduce interest rates, but always make sure you know the pros and cons of federal versus private student loans,” Hasting says.

In fact, another popular reason that people choose to refinance their loans is to lower their interest rate. When you first applied for loans for college you may have had bad credit or even no credit at all, making your loans have a high-interest rate. Depending on where you are at right now, you could have had a salary increase, built up your credit, or even worked on your credit for a better score.

No matter what your situation is, refinancing will help lower the interest rate which helps you save money in the long run. There is no set interest rate that every individual receives, but you can research potential companies and they will give an overview of what their fixed interest rates range from.

Best Companies to Refinance Student Loans in 2024