If you want to take on your student debt and you don’t qualify for any debt relief, refinancing could help. You may be able to combine your various loans together into one manageable monthly payment and possibly get a lower interest rate, saving you money long term.
Best overall: Earnest
Earnest Student Loan Refinancing
Earnest has some of the best perks with its student loan refinancing, including the option to skip one payment each year to make up later. It offers biweekly or monthly payments, and prequalification with a soft credit check. If you haven't graduated, the credit score requirement is 700 — graduates must have a 650 credit score. All other requirements are clearly listed with an easy-to-read eligibility guide. Earnest also offers 16 plans to choose from — that's 11 more than SoFi and Citizen. Typical with student loan refinancing, you must refinance at least $5,000 ($10,000 in CA).
-
Pros
- 16 repayment plans
- Accepts nongraduates
- Clear eligibility guidelines
- No origination fees or prepayment penalties
- Offers phone applications
- Prequalification offered
Cons
- Higher credit score required for nongraduates
- Not the lowest rates in the market
- Fee of $8 for returned payment
-
Minimum Loan Amount | $5,000 |
---|
Max. Loan Amount | $500,000 |
---|
APR | 5.99% to 9.74% APR with autopay |
---|
Interest Rate Type | Variable |
---|
Fixed rate | 5.19% - 9.74% with 0.25% autopay discount |
---|
Minimum Loan Term | 5 years |
---|
Maximum Loan Term | 20 years |
---|
Requirements | 650+ credit score, $5,000+ in student debt from a Title IV school, meet income and credit history requirements, live in an eligible state, US citizen or permanent resident, ages 18+ |
---|
APR | 5.99% to 9.74% APR with autopay |
---|
Loan amount | $5,000 - $500,000 |
---|
Min. Credit Score | 650 |
---|
Go to site
Best online lender: SoFi
SoFi Student Loan Refinancing Variable Rate (with Autopay)
SoFi offers multiple lending options and banking products, including student loan refinancing. It's known for its member perks like free financial advice, and often caters to younger borrowers just starting out their careers. Like many other providers, SoFi student loan refinancing requires you to refinance at least $5,000. If you set up autopay, you can get a 0.25% APR discount.
-
Pros
- Reputable online lender
- Prequalification offered
- No prepayment penalties
- Many other lending and banking products
Cons
- High max rates
- Cosigner release after 24 months
- Vague eligibility guidelines
-
Minimum Loan Amount | $5,000 |
---|
Max. Loan Amount | Full balance of your qualified education loans |
---|
APR | 6.24% to 9.99%
|
---|
Interest Rate Type | Variable |
---|
Fixed rate | 5.24% to 9.99% |
---|
Minimum Loan Term | 5 years |
---|
Maximum Loan Term | 20 years |
---|
Requirements | Must be an employed US citizen not living in Vermont with a minimum loan balance of at least $5,000. |
---|
APR | 6.24% to 9.99%
|
---|
Loan amount | Starting at $5,000 |
---|
Min. Credit Score | 650 |
---|
Go to site
Best for low fixed and variable rates: LendKey
LendKey Student Loan Refinancing (with AutoPay)
LendKey has one of the lowest starting fixed rate APRs, and can be as low as 4.54% with an autopay discount. Its variable rates start on the lower end as well. There are also no origination fees or prepayment penalties, and prequalification is offered with a soft credit check. Loan terms range between five to 20 years, and you must borrow at least $5,000. To be eligible for LendKey's student loan refinancing, you must have graduated with at least an associate degree.
-
Pros
- Low fixed and variable rates
- No origination fees
- No prepayment penalties
- Prequalification offered
Cons
- Cosigner release varies
- No credit score requirement listed
- No income requirements listed
-
Minimum Loan Amount | $5,000 |
---|
Max. Loan Amount | $300,000 |
---|
APR | Rates as low as 4.54% (w/AutoPay) |
---|
Interest Rate Type | Variable |
---|
Fixed rate | 4.49% to 7.93% |
---|
Minimum Loan Term | 5 years |
---|
Maximum Loan Term | 20 years |
---|
Requirements | You must be a US citizen or permanent resident and have an undergraduate or graduate degree. |
---|
APR | Rates as low as 4.54% (w/AutoPay) |
---|
Loan amount | $5,000 - $300,000 |
---|
Min. Credit Score | 660 |
---|
Go to site
Best for no fees and low fixed rates: Advantage Education Loan
Advantage Education Loan Refinance Loan
Advantage Education Loan offer fixed rates only, but it's the lowest fixed rate we could find at 4.49%. There's also the 0.25% APR discount available with autopay, making the lowest possible rate at 4.24% APR. Advantage has no origination fees, application fees, late fees or non-sufficient funds fees, and there are no prepayment penalties. However, there are no variable rates and no prequalification offered. You must fully apply with a hard credit pull to see the rates you qualify for. Loan terms range from 10-, 15- and 20-year terms, and a cosigner release is available after 12 months — the shortest we've seen. But there's no clear credit score requirement listed.
-
Pros
- No fees
- Lowest fixed rate available
- Available in all 50 states
- Cosigner release after 12 months
Cons
- Must borrow at least $7,500
- No clear credit score requirement
- No prequalification offered
- No variable rates
-
Minimum Loan Amount | $7,500 |
---|
APR | Starting at 4.24% |
---|
Interest Rate Type | Fixed |
---|
Minimum Loan Term | 10 years |
---|
Maximum Loan Term | 20 years |
---|
Requirements | Credit score of 670 or higher, debt-to-income ratio of 38% or lower, US citizen or permanent resident and live in an eligible state |
---|
APR | Starting at 4.24% |
---|
Loan amount | Starting at $7,500 |
---|
Min. Credit Score | 670 |
---|
Best for low maximum rates: Laurel Road
Laurel Road Student Loan Refinancing
Laurel Road offers some of the lowest rates in the market. Most lenders maximum rates reach upwards of 8% to 9%, but Laurel maxes out at 5.90% for fixed and 6.65% for variable. There is the standard 0.25% autopay discount, making the lowest fixed 4.24% APR and lowest variable 4.49% APR. But to get the autopay discount, you must open a Laurel Road checking account — and the discount only lasts for three months. The entire application is completed online, with a soft credit check prequalfication offered. Laurel states that they refinance student loans for “working professionals” with four-year undergraduate or graduate degrees. Associate degrees in certain professions are acceptable.
-
Pros
- Low maximum rates
- Low variable rate
- Online application
- Prequalification offered
Cons
- Autopay discount lasts for 3 months
- Laurel checking account required for autopay discount
- Strict yet vague requirements
- Not all associate degrees accepted
-
Minimum Loan Amount | $5,000 |
---|
Max. Loan Amount | None |
---|
APR | 4.49% to 6.65% |
---|
Interest Rate Type | Variable |
---|
Fixed rate | 4.24% to 6.75% |
---|
Minimum Loan Term | 5 years |
---|
Maximum Loan Term | 20 years |
---|
Requirements | All loans must be for qualified higher education expenses and in grace or repayment status and cannot be in default. You must have annual income of $60,000 or higher. |
---|
APR | 4.49% to 6.65% |
---|
Loan amount | Starting at $5,000 |
---|
Min. Credit Score | 680 |
---|
Best if you’re in a medical residency: ISL Education Lending
Featuring no origination fees, prepayment penalties or late fees, ISL Education Lending can be a low cost refinancing option. It offers fixed rates from 3.85% to 7.91% APR, or 4.44% to 8.98% APR, and you could get a 0.25% discount for autopay. However, there are no variable plans offered. If you're in medical residency, you could enjoy lower rates starting at 4.18% APR to 8.36% APR (or 4.43% to 8.11% APR with autopay discount). Like most other refinancing lenders, ISL offers prequalification with a soft credit check to see what rates you may qualify for and you must borrow at least $5,000 ($10,000 for CA).
-
Pros
- Clear requirements on site
- Lower rates for med students
- Prequalification offered
- No origination or late fees
- No prepayment penalties
Cons
- No variable rates
- Cosigner release after 24 months
-
Minimum Loan Amount | $10,001 |
---|
Max. Loan Amount | $300,000 |
---|
APR | 4.44% to 8.98% |
---|
Interest Rate Type | Variable |
---|
Fixed rate | 3.85% to 7.91% |
---|
Minimum Loan Term | 20 years |
---|
Maximum Loan Term | 7 years |
---|
Requirements | Iowa resident or non-Iowa resident attending an eligible school in Iowa at least half time, satisfactory academic progress, 670+ credit score, DTI of 40% or lower, continually employed for past two years, US citizen or permanent resident, strong credit history |
---|
APR | 4.44% to 8.98% |
---|
Loan amount | $10,001 - $300,000 |
---|
Min. Credit Score | 670 |
---|
How we chose the best student loan refinancing lenders
We compared dozens of lenders before narrowing down to our best six picks. The most important factors came down to interest rates offered for fixed and variable rates, loan terms, number of repayment options, existence of various fees, ease of application, lender reputation and state availability.
Most student loan refinancing lenders allow for cosingers, so we also considered the option of cosigner release and when that option is available. We also listed each lender’s advertised interest rate without any discounts applied for transparency.
How does student loan refinancing work?
With student loan refinancing, you take out a new loan to repay your loan servicers — hopefully with lower rates or more favorable terms. The new loan is used to pay off your student loans, and you work to repay the new loan.
Most student loan refinancing lenders will send funds directly to your loan service provider for you, then issue you the new loan.
Keep in mind that student loan refinancing doesn’t reduce the amount of debt you have, but it can reduce the amount you pay in the end.
Should I refinance my student loans?
Consider refinancing if:
- You have good credit. Good credit means you’re eligible for lower interest rates and fees. If you don’t know your credit score, it’s worth finding out.
- Your income is more than the amount you owe. Your debt-to-income ratio is often a factor lenders consider when calculating interest rates and fees. A low debt-to-income ratio means you have a higher chance of getting a good deal through refinancing.
- You’re paying high interest rates. The likelihood of finding a better deal through refinancing is higher if your interest rates are steep to begin with.
- You have a graduate degree. It’s not always necessary, but some lenders like to see you’ve put your student loans to go above and beyond with higher education.
You may want to hold off if:
- You have bad credit. You may be better off sticking with the rates you have if your credit score is less than fair. Though you may be able to refinance with bad credit if you have a cosigner.
- You’re unemployed. It’s harder to find a better deal if you can’t prove to lenders that you have the income to pay off your loans.
- You owe more than you make. A high debt-to-income ratio could result in higher rates and fees, meaning you might have trouble finding a better deal.
- You’re new to the workforce. Savvy recent grads might want to jump on the refinance train as soon as they get their degrees. But they probably won’t get the best rates — lenders prefer people who’ve been working for a while.
What about the student debt forgiveness?
On August 24, 2022, it was announced that student loan holders may be able to get $10,000 in student debt forgiven, or as much as $20,000 forgiven if they were Pell Grant recipients. Individuals who earn less than $125,000 per year or households that earn less than $250,000 per year may be eligible for the debt relief, according to StudentAid.gov.
If you do refinance your federal student debt, or have already, you aren’t eligible for the most recent debt forgiveness initiative and possibly future ones. Additionally, refinancing can mean losing out on other federal student loan benefits, including repayment protections like deferment and forbearance.
Before you go through with refinancing your student loans, weigh your options.
Requirements of student loan refinancing
Requirements for student loan refinancing vary, but here are some general guidelines to expect:
- Be a US citizen or permanent resident, or noncitizen with proof of residency card
- Minimum loan amount must be at least $5,000 (higher in AZ, CA, CT, and MA)
- School must be Title-IV accredited
- Low debt-to-income ratio, preferably below 40%
- Fair credit score, above 650
- No previous bankruptcies
- No accounts in collections or charge-offs
- Have at least an associate degree
Again, these requirements vary, and there are some lenders that will refinance your student loans if you didn’t graduate, such as Earnest.
How to apply for student loan refinancing
You and your cosigner can usually apply online by filling out a simple application that often doesn’t take more than a few minutes.
The most time-consuming part is getting your documents together and waiting for your lender to reach out to your servicer. It can take as long as a month or two to refinance your student loans, though some lenders advertise a one- to two-week turnaround time.
Should I get a cosigner when refinancing my student loans?
You might need a cosigner to refinance your student loans if you have bad credit or you don’t have a strong work history. Most of the student refinancing lenders we’ve researched do accept cosigners.
However, the process for applying with a cosigner varies by lender. Some consider your cosigner’s information alone when determining your eligibility and rates. Others look at a combination of the two. Some only consider your cosigner’s credit to help you lower your rates but still require you to meet basic eligibility requirements on your own.
What is a cosigner release?
Cosigner release allows you to take your cosigner’s name off your loan. To qualify, you typically need to make 12 to 24 months of on-time payments and be able to meet the lender’s credit requirements on your own. Some lenders let you keep your current rates and terms, while others might adjust them to reflect your solo creditworthiness.
Refinancing Parent PLUS Loans
Parent PLUS Loans come with higher interest rates than federal loans and are one of the few cases where refinancing can help lower your overall loan cost. They’re also in the parent’s name rather than the student’s.
Parents generally have two options for refinancing Parent PLUS Loans: Refinancing in your name or refinancing in your child’s name. Refinancing in your child’s name allows you to get better rates, but more importantly, it lets you transfer the debt so you can qualify for other types of credit.
Not all lenders are willing to refinance Parent PLUS Loans, so look for one that specifically mentions it does before you start your application.
Alternatives to student loan refinancing
Refinancing isn’t the only way to save on your student loans or make your repayments more affordable. If it’s not the right time or you have federal loans, you might want to look into some of your other choices.
- Switch to a new repayment plan. Federal loans come with a wide range of repayment plans, including several based on your annual income. Some private student loan providers might also be flexible if your financial situation has significantly changed.
- Apply for deferment or forbearance. If you’re temporarily unable to afford your current student loan repayments, deferment or forbearance could be the answer. It allows you to put your repayments on hold or make interest-only repayments until you can support yourself again.
- Go back to school. If you’re considering a graduate degree or didn’t finish your undergrad program, having a higher level of education can lead to higher salaries and more competitive refinancing options. Plus, while you’re in school, you can often put your repayments on hold again.