Compare best student loan refinance lenders: September 2024

A key part of refinancing is finding the right lender. Here's a look at the top student loan refinance companies, plus advice on how to compare offers.

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By Becca Stanek

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Becca Stanek

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Becca Stanek has worked in personal finance for over seven years. Her work has been featured by MSN, SoFi, Forbes, and Fox Business.

Updated October 18, 2024, 12:00 PM EDT

Edited by Renee Fleck

Written by

Renee Fleck

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Renee Fleck is a student loans editor with over five years of experience in digital content editing. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

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Refinancing your student loans opens the door to a number of potential benefits, from simplified monthly payments to the chance of a lower interest rate. If you’re not happy with your current lender, here’s a list of the best student loan refinance companies and how to choose the right one.

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Important:

Beware of refinancing federal student loans, as you'll lose access to income-driven repayment plans, deferment and forbearance options, and access to forgiveness.

Compare student loan refinancing rates

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8 best student loan refinance lenders

Factors like your credit, income, and existing debt all impact the exact refinancing terms you receive - and each lender has a different way of analyzing your application.

If possible, prequalify with a few lenders before submitting an application. By prequalifying, you can see the estimated rates and terms you're likely to qualify for, often with only a soft credit check that won't affect your score. This can give you a better idea of what each lender may offer and help you find the best loan for your situation.

SoFi: Best for member perks

Best for member perks

SoFi

4.5

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

650

Fixed APR

3.99 - 9.99% 1

Variable APR

5.99 - 9.99% 1

Loan Amount

$5,000 up to the full balance

Term

5, 7, 10, 15, 20

Pros and cons

More details

Citizens: Best for current account holders

Current account holders

Citizens

4.7

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

Does not disclose

Fixed APR

5.89 - 11.85%

Variable APR

6.92 - 13.74%

Loan Amount

$10,000 - $750,000

Term

5, 7, 10, 15, 20

Pros and cons

More details

ELFI: Best for high balances and flexible term

High balances

ELFI

4.4

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

680

Fixed APR

4.84 - 8.44%

Variable APR

4.86 - 8.49%

Loan Amount

$10,000 up to total refinance amount

Term

5, 7, 10, 12, 15, 20

Pros and cons

More details

EdvestinU: Best for high loan balances

High balances

EdvestinU

3.8

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

700

Fixed APR

6.00 - 10.37%

Variable APR

7.93 - 9.68%

Loan Amount

$7,500 - $200,000

Term

5, 10, 15, 20

Pros and cons

More details

INvestEd: Best for forbearance

Forbearance

INvestEd

3.9

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

670

Fixed APR

5.12 - 9.46%

Variable APR

8.50 - 12.39%

Loan Amount

$5,000 - $250,000

Term

5, 10, 15, 20

Pros and cons

More details

LendKey: Best for graduates with excellent credit

Graduates with excellent credit

LendKey

4.6

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

680

Fixed APR

4.89 - 9.04%

Variable APR

5.31 - 8.89%

Loan Amount

$5,000 - $250,000

Term

5, 7, 10, 15

Pros and cons

More details

MEFA: Best for borrowers with no degree

No degree

MEFA

4

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

670

Fixed APR

6.20 - 8.99%

Variable APR

-

Loan Amount

$10,000 up to the total amount

Term

7, 10, 15

Pros and cons

More details

RISLA: Best for income-based repayment

Income-based repayment

RISLA

3.7

Fox Money rating

Check Rates

on Credible’s website

Min. Credit Score

680

Fixed APR

6.34 - 8.54%

Variable APR

-

Loan Amount

$7,500 - $250,000

Term

5, 10, 15

Pros and cons

More details

Other lender to consider

If the options above don't fit your needs, see what this lender can provide:

  • Laurel Road: With fixed and variable rates available, along with loan terms from 5 to 20 years, you can customize your loan to fit your needs. Borrowers who link a Laurel Road checking account and meet deposit requirements can also access lower refinancing rates. You can schedule a free consultation with a student loan specialist to compare your options.

Methodology

We evaluated these student loan refinancing lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

How to compare student loan refinance lenders

When comparing your loan options, it can be tough to know which factors are most important. Here's what to review for each loan offer you receive:

  • Annual percentage rate (APR): This is what the lender charges to loan you money. Make sure you understand the difference between the APR and simple interest rate: While the simple interest rate only includes interest costs, the APR factors in the interest plus other borrowing costs, such as an origination fee.
  • Loan terms: This is how long you have to repay your debt. A longer term generally results in smaller monthly payments but higher total interest costs. Many lenders offer options between 5 and 20 years, but some only have 2 or 3 terms to choose from.
  • Loan amounts: Lenders often instate minimum and maximum amounts they're willing to refinance. Make sure the companies you review offer the amounts you need.
  • Eligibility requirements: In addition to meeting credit and income standards, lenders may also require you to be a U.S citizen or permanent resident, live in an eligible state, or have certain types of student loans. Many lenders also require that you graduated with your degree, though some will work with borrowers who didn't complete their education.
  • Cosigner policies: If you plan to use a cosigner, review each lender's rules. See if releasing the cosigner later is an option, and what requirements you must meet to do so.
  • Fees: Review the other expenses that may come with your loan. Most lenders don't charge upfront costs such as application or origination fees, but some might. Also compare late fees, returned payment fees, and similar costs.
  • Discounts and rewards: Most lenders offer a rate discount of 0.25 percentage points when you enroll in autopay, but there may be other perks available, too. Look for things like loyalty discounts for existing customers, lower rates for residents of certain states, and refer-a-friend programs, all of which can save you money on your student debt.
  • Hardship options: If you later have trouble making payments, what programs does the lender have to help? Some offer forbearance programs if you're unemployed or experience a natural disaster, while others may allow you to skip one payment a year or adjust your due date as needed.
  • Membership benefits: Some companies offer unique perks to entice customers. Your loan might come with free access to a finance professional, career planning resources, or other specialized services.

Pros and cons of student loan refinancing

You'll need to weigh more than just your options in lenders before moving forward with student loan refinancing. It's also important to consider the pros and cons of refinancing to ensure it's financially beneficial for you:

Pros of student loan refinancing:

  • You can save money: By securing a lower interest rate, you could significantly reduce the total cost of your loan over time, potentially saving you thousands in interest charges.
  • You can lower your monthly payments: When you refinance, you'll have the option of extending your repayment period, which will lower your monthly payments. Just know that a longer repayment term means you'll be in debt for longer and owe more interest.
  • You can combine multiple loans into one: Consolidating several loans into one refinancing plan simplifies your finances with a single monthly payment.
  • You can release a cosigner from your loans: Refinancing will release any cosigner from a previous loan from their responsibility of the debt, potentially improving their credit profile.

Cons of student loan refinancing:

  • You might not qualify: A minimum credit score of 670 and a stable income are usually required to refinance on your own. Each lender has their own credit and income requirements.
  • You might not get a better rate: Depending on market conditions and your credit profile, you might not be able to access a lower rate than what you're currently paying.
  • You may increase your interest charges: Refinancing allows you to expand your repayment terms, which lowers your monthly payments. However, if you do choose a longer repayment period, you may not save money in the long run.
  • You might lose federal benefits and protections: Refinancing federal student loans with a private lender means losing benefits like income-driven repayment, deferment and forbearance options, and access to forgiveness programs.

Eligibility requirements to refinance student loans

Exact eligibility requirements to refinance student loans vary by lender. However, general requirements include:

  • Good credit score: You'll typically need a credit score in the mid- to high-600s to qualify for student loan refinancing (or include a cosigner with strong credit on your application).
  • Proof of income: Some lenders have a minimum income requirement, while others simply require proof of employment.
  • A minimum amount to refinance: Not all lenders have this requirement, but some may require you to have at least $5,000 to $10,000 in student loans to refinance.
  • A degree from an eligible school: Most lenders won't allow you to refinance until after you've graduated or left school. However, there are some exceptions such as MEFA, which allows current students to refinance with them.
  • A U.S. citizenship or permanent resident status: You typically need to be a U.S. citizen or permanent resident alien with a valid Social Security number to qualify for refinancing.

Minimum credit score for student loan refinancing

Generally, you'll need a minimum FICO score of 670 to refinance your student loans - but the higher your score, the lower the rate you're likely to qualify for. A high credit score matters to lenders because it indicates a lower risk of default. If your credit isn't ideal, consider bringing on a cosigner with excellent credit to help you qualify for a better rate.

Related: Can I refinance student loans with bad credit?

Should I refinance my student loans?

You might consider student loan refinancing if you can qualify and if doing so could result in savings or other benefits, such as lowering your monthly dues to a more manageable amount.

Refinancing your student loans might make sense if doing so could lead to savings. This might be the case if you currently have a high interest rate - particularly if it's a variable rate, which can be unpredictable. Additionally, if your financial situation has improved since you took out your loans or the interest rate environment is strong, then refinancing might be worth pursuing.

If you have federal student loans, however, exercise caution before refinancing. Refinancing federal student loans will cause you to lose access to federal protections and benefits, such as student loan forgiveness, income-driven repayment, and flexible deferment or forbearance.

You might also think twice before refinancing if your current financial situation is rocky or you're behind on payments. Refinancing in those situations will likely result in you ending up with a higher interest rate.

How to apply for a student loan refinance

If you decide that refinancing is right for you, here's a look at how to refinance student loans.

  1. Check your credit: Before you start looking at lenders, take a peek at your own credit. To qualify for a refinance loan, you'll typically need a credit score in the mid- to high-600s.
  2. Review and compare lenders: Review and compare different lenders using the criteria discussed above. It may be helpful to use a spreadsheet or other strategy to track this data and keep the details straight.
  3. Get prequalified: Getting prequalified can give you a sense of whether you might be approved by a lender and, if so, what rate it may offer you. All you have to do is provide some basic information about yourself and the lender will show your estimated rates and terms. Remember that a prequalification is just an estimate, and there's no guarantee of approval or the rates you've been quoted. You must submit a full application to see the lender's finalized offer.
  4. Submit an online application: Student loan refinancing applications typically ask about your current loans, education, employer, and financial situation. You'll also need to authorize a hard credit pull to complete your application. This can result in a small, temporary dip in your credit score, but it's a necessary part of the process.
  5. Start paying your new loan: If your application is approved, your new lender will work with your existing loan servicers to pay off your debt. Continue making payments on your old loans until you've received confirmation that they're paid off and the account has been closed.

Student loan refinance lenders FAQ

Which student loans should I refinance?

It's generally wise to refinance high-interest private student loans over federal loans, since they usually come with higher interest rates. Federal student loans offer benefits like income-driven repayment plans and the potential for loan forgiveness. Refinancing federal loans with a private lender means you'll lose access to those benefits.

How much will refinancing save me?

Refinancing may or may not save you money. Let's say you have $30,000 in student loans at a 7.5% interest rate over a 10-year loan term. Refinancing to a new rate of 5.5% with the same loan term would save you $3,663 on interest over the life of the loan. However, if you chose to extend your repayment term to 15 years when you refinanced, you would end up owing a total of $1,390 more in interest charges over the life of your loan.

Can I refinance student loans more than once?

Yes, you can refinance student loans multiple times, and it might be financially beneficial if your credit score improves or if overall interest rates drop. You should only refinance if it makes sense for your financial situation.

When is the best time to refinance student loans?

The best time to refinance student loans is typically after you've graduated, as most lenders require a degree for refinancing eligibility. You might consider student loan refinancing if you can qualify and if doing so could result in savings or other benefits, such as lowering your monthly dues to a more manageable amount.

Can student loans be forgiven after refinancing?

No, when you refinance student loans, you lose access to federal benefits - including student loan forgiveness programs. However, refinanced loans may qualify for repayment assistance programs, including employer-sponsored help with payments.

Meet the contributor:
Becca Stanek
Becca Stanek

Becca Stanek has worked in personal finance for over seven years. Her work has been featured by MSN, SoFi, Forbes, and Fox Business.

Fox Money

Fox Money is a property of Credible Operations, Inc., which is majority-owned indirectly by Fox Corporation. This material may not be published, broadcast, rewritten, or redistributed. All rights reserved. Use of this website (including any and all parts and components) constitutes your acceptance of Fox's Terms of Use and Updated Privacy Policy | Your Privacy Choices.

Fox Money is a property of Credible Operations, Inc., which is majority-owned indirectly by Fox Corporation. This material may not be published, broadcast, rewritten, or redistributed. All rights reserved. Use of this website (including any and all parts and components) constitutes your acceptance of Fox's Terms of Use and Updated Privacy Policy | Your Privacy Choices.