If your credit score or financial standing is less than perfect, you're not alone - Experian reports that 35% of consumers have a credit score less than 670, which in most cases, isn't high enough to qualify for a student loan refinance.
That's where bringing on a cosigner can make a difference. Adding a cosigner to your refinance loan can increase your likelihood of approval and may save you money by qualifying for a lower interest rate. Here's what you need to know.
Good to know:
Most refinance lenders require a score in the high 600s or above to qualify. If you don’t have this score, your cosigner will likely need it. Typically, borrowers with higher scores can access lower interest rates.
Many lenders offer student loan refinancing with the ability to add a cosigner. Before settling on a refinance lender, compare these factors to determine the right fit:
- Cosigner release: If you fail to make your student loan payments, your cosigner becomes responsible for the loan, which could damage their credit. Given the added risk, a cosigner might feel better if cosigner release is an option. Cosigner release allows you to remove your cosigner from the loan if you meet certain eligibility requirements, such as making a certain amount of consecutive monthly payments.
- Repayment terms: The length of time you have to repay your refinancing loan affects your monthly payments. A longer repayment term usually translates to lower monthly payments, but more interest costs over time. Review repayment terms from each lender so you can choose one that will fit with your budget.
- Interest rates: Many refinancing lenders offer both variable and fixed interest rates. Compare these rates and how each will impact repayment. Fixed rates lead to predictable payments and unchanging rates, while variable rates fluctuate, which means your monthly payments can change too.
- Hardship options: Research potential deferment or forbearance options that would allow you to pause payments temporarily in case of financial hardship.
- Unique benefits: Review any unique benefits from the lender that may improve your experience. For example, some refinance lenders offer an interest rate reduction for borrowers who set up automatic payments.
Related: Should I refinance my student loans?
Citizens Bank offers cosigner-friendly refinance loans with the option to release your cosigner after making 36 consecutive, on-time payments of principal and interest. To refinance with Citizens, you or your cosigner need to earn at least $24,000 annually and have at least $10,000 in student loans to refinance.
Min. Credit Score
Does not disclose
Variable APR
6.52 - 13.44%
Loan Amount
$10,000 - $750,000
Offers prequalification to check rates
Discounts for autopay and loyalty
Wide range of repayment terms
Higher minimum loan requirement than some lenders
Cosigner release only available after 36 payments
12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance
Overview
If you have at least $10,000 in student loans to refinance, Citizens may be a good option.The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.
Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
EdvestinU offers competitive refinance rates though the lender has specific eligibility criteria to qualify: You or your cosigner will need a minimum credit score of 700, and an annual income of at least $50,000 if you're refinancing over $100,000 in student loans. EdvestinU requires at least 24 consecutive monthly payments before you're able to release a cosigner.
Loan Amount
$7,500 - $200,000
No degree required to qualify and can refinance while still in school
Rate discount of 0.25 percentage points for autopay
New Hampshire residents may qualify for a 1.5 percentage point rate reduction
Can prequalify and see rate offers with no impact on credit score
Not available to borrowers in all states
Higher minimum balances and lower maximum balances than some competitors
Stricter cosigner release requirements than many other lenders
Overview
EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.
The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
INvestEd provides one of the shortest timelines for cosigner release - just 12 months of consecutive, on-time payments.A minimum FICO score of 670 and an annual income of $36,000 are required to qualify. The loan minimum to refinance is $5,000.
Variable APR
8.52 - 12.40%
Loan Amount
$5,000 - $250,000
Don’t need a degree to refinance
Offers rate discount for autopay
Can release cosigner after 12 on-time payments
Various deferment options available
Can’t prequalify before applying
Maximum loan limit is lower than some lenders
Not able to transfer a parent loan to a student
International students aren’t eligible
Overview
INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.
The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
LendKey offers a cosigner release option, but the exact timeline varies and is specified in your credit agreement; it can range from 12 to 36 months of consecutive, on-time payments. The minimum loan amount is $5,000, but varies in certain states: $10,001 in Arizona, $50,001 in Connecticut, and $6,000 in Massachusetts.
Graduates with excellent credit
Loan Amount
$5,000 - $250,000
Doesn’t charge origination or application fees
Can refinance with an associate degree
Offers a discount for autopay
Terms vary by the lender you choose
Potentially need to meet membership requirements for certain credit unions or banks
Overview
LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.
Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.
Loan terms
5, 7, 10, 15, or 20 years
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
MEFA allows student loan refinance applications with a cosigner but doesn't offer a cosigner release option. Their refinance loans are typically a good choice for borrowers who didn't graduate, as there's no degree completion requirement to refinance. Note, MEFA does not offer variable interest rates - only fixed.
Loan Amount
$10,000 up to the total amount
You don’t need a degree to refinance
View your estimated rate through prequalification
No application, origination, or late fees
Variable rates are not offered; only fixed
No autopay rate discount
Cosigner can’t be released from the loan
Parent loans are not eligible for refinancing
Overview
The Massachusetts Educational Financing Authority (MEFA) provides refinancing options for student borrowers, even if you haven't earned your degree. While MEFA doesn't offer variable-rate loans, its fixed-rate options are competitive with what other lenders offer.
You can refinance loans starting at $10,000, but you'll need to have made six on-time payments on your current loans within the last six months to qualify. If your credit history isn't strong enough, you can apply with a cosigner. However, MEFA doesn't offer cosigner release, meaning the cosigner remains responsible until the loan is fully paid off.
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
RISLA allows you to apply with a cosigner, but does not offer a straightforward cosigner release. To remove a cosigner, you would need to reapply for a new refinance loan solely under your name. A minimum household income of $40,000 is needed, and the smallest amount you can borrow is $7,500.
Loan Amount
$7,500 - $250,000
Offers income-based repayment
Forbearance periods of as long as 24 months available
Graduate school deferment periods as long as 36 months
Can refinance even without a degree
Cosigners cannot be released from loans
Limited range of repayment terms
Must have income of at least $40,000 to qualify
Doesn’t offer variable-rate loans
Overview
Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.
One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Education Loan Finance (ELFI) is a student loan refinance lender that allows cosigners, but doesn't offer cosigner release. To release your cosigner from an ELFI student loan, you would have to apply for a new loan without your cosigner. You'll need at least $10,000 in student debt to refinance with ELFI.
Loan Amount
$10,000 up to total refinance amount
Work with a dedicated Student Loan Advisor
Students can refinance parent loans in their own name
Transparent eligibility criteria
Payment relief options for struggling borrowers
At least a bachelor’s degree required for refinancing
No cosigner release
No autopay rate discount
Fees apply for late or returned payments
Overview
ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.
ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
To refinance student loans with a cosigner, you need to find someone eligible and willing to help you out. Stakes are high for cosigners. It's not just about using their positive credit history to get approved for a loan. Cosigners take on a major responsibility and legally must repay the loan if you fail to meet your payment obligations.
Typically, cosigners are family members, like a parent or sibling. Additionally, you need to ensure that your potential cosigner meets the criteria for a "good cosigner." Generally, that means a FICO credit score of 670 or above, and income and employment that can support the loan.
Tip:
Have a candid discussion with your cosigner about their responsibilities and expectations. If cosigner release is an option with your lender, discuss what that process looks like.
Related: Can I refinance student loans with bad credit?
Once you've chosen a refinancing lender and have an eligible cosigner, complete an online application. Fill it out completely and provide documentation for you and your cosigner, if requested. This can include:
- Social Security number or a government-issued ID
- Pay stubs and employer information
- Tax returns, if self-employed
- Billing statements for the loans you want to refinance
- Account information for your student loans
If you submit an incomplete application, it may delay your approval or lead to a rejection. Double-check that you've filled everything out and provided the necessary documents for you and your cosigner. After you review your application, press submit, and wait for the lender's response.
Related: How to refinance student loans in 6 steps
There are two scenarios where refinancing student debt with a cosigner could make sense:
- You can't qualify for a refinance loan on your own: If you have a FICO score that's less than 670 or your credit history has negative marks, you probably won't qualify for a student loan refinance on your own. Applying with a cosigner who has good credit could help you access these loans.
- You want to access lower interest rates: Various factors influence your interest rate, including your credit. You may qualify for a refinancing loan on your own, but if your cosigner has better credit, you could secure a lower interest rate - this can lower costs, making your loan more affordable.
Many private lenders allow you to refinance student loans with a cosigner. Applying with a cosigner can increase your chances of loan approval and could have a beneficial impact on your interest rate. While this can help you as a borrower, it's important to understand that a cosigner is responsible for the loan if it's in default.
Getting approval for a loan is difficult if you have limited credit history or a poor credit score. When you add a cosigner with excellent credit and a stable income, your chances of approval increase because the cosigner agrees to repay the loan if the primary borrower stops making payments. Cosigners can help with approval, and as an added benefit, they can also help lower your interest rate.
A good cosigner is someone with a good credit profile that's free of negative marks, and with a FICO score of 670 or above. Additionally, a good cosigner has a stable income and assets to fall back on if the loan ends up in default.
Overview
If you have at least $10,000 in student loans to refinance, Citizens may be a good option.The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.
Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.
pros
- Offers prequalification to check rates
- Discounts for autopay and loyalty
- Wide range of repayment terms
cons
- Higher minimum loan requirement than some lenders
- Cosigner release only available after 36 payments
- 12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.
ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.
pros
- Work with a dedicated Student Loan Advisor
- Students can refinance parent loans in their own name
- Transparent eligibility criteria
- Payment relief options for struggling borrowers
cons
- At least a bachelor’s degree required for refinancing
- No cosigner release
- No autopay rate discount
- Fees apply for late or returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.
The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.
pros
- No degree required to qualify and can refinance while still in school
- Rate discount of 0.25 percentage points for autopay
- New Hampshire residents may qualify for a 1.5 percentage point rate reduction
- Can prequalify and see rate offers with no impact on credit score
cons
- Not available to borrowers in all states
- Higher minimum balances and lower maximum balances than some competitors
- Stricter cosigner release requirements than many other lenders
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.
The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.
pros
- Don’t need a degree to refinance
- Offers rate discount for autopay
- Can release cosigner after 12 on-time payments
- Various deferment options available
cons
- Can’t prequalify before applying
- Maximum loan limit is lower than some lenders
- Not able to transfer a parent loan to a student
- International students aren’t eligible
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.
Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.
pros
- Doesn’t charge origination or application fees
- Can refinance with an associate degree
- Offers a discount for autopay
cons
- Terms vary by the lender you choose
- Potentially need to meet membership requirements for certain credit unions or banks
Loan terms
5, 7, 10, 15, or 20 years
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
$10,000 up to the total amount
Overview
The Massachusetts Educational Financing Authority (MEFA) provides refinancing options for student borrowers, even if you haven't earned your degree. While MEFA doesn't offer variable-rate loans, its fixed-rate options are competitive with what other lenders offer.
You can refinance loans starting at $10,000, but you'll need to have made six on-time payments on your current loans within the last six months to qualify. If your credit history isn't strong enough, you can apply with a cosigner. However, MEFA doesn't offer cosigner release, meaning the cosigner remains responsible until the loan is fully paid off.
pros
- You don’t need a degree to refinance
- View your estimated rate through prequalification
- No application, origination, or late fees
cons
- Variable rates are not offered; only fixed
- No autopay rate discount
- Cosigner can’t be released from the loan
- Parent loans are not eligible for refinancing
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.
One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.
pros
- Offers income-based repayment
- Forbearance periods of as long as 24 months available
- Graduate school deferment periods as long as 36 months
- Can refinance even without a degree
cons
- Cosigners cannot be released from loans
- Limited range of repayment terms
- Must have income of at least $40,000 to qualify
- Doesn’t offer variable-rate loans
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Overview
If you have at least $10,000 in student loans to refinance, Citizens may be a good option.The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.
Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.
pros
- Offers prequalification to check rates
- Discounts for autopay and loyalty
- Wide range of repayment terms
cons
- Higher minimum loan requirement than some lenders
- Cosigner release only available after 36 payments
- 12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Loan Amounts
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.
ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.
pros
- Work with a dedicated Student Loan Advisor
- Students can refinance parent loans in their own name
- Transparent eligibility criteria
- Payment relief options for struggling borrowers
cons
- At least a bachelor’s degree required for refinancing
- No cosigner release
- No autopay rate discount
- Fees apply for late or returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.
The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.
pros
- No degree required to qualify and can refinance while still in school
- Rate discount of 0.25 percentage points for autopay
- New Hampshire residents may qualify for a 1.5 percentage point rate reduction
- Can prequalify and see rate offers with no impact on credit score
cons
- Not available to borrowers in all states
- Higher minimum balances and lower maximum balances than some competitors
- Stricter cosigner release requirements than many other lenders
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.
The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.
pros
- Don’t need a degree to refinance
- Offers rate discount for autopay
- Can release cosigner after 12 on-time payments
- Various deferment options available
cons
- Can’t prequalify before applying
- Maximum loan limit is lower than some lenders
- Not able to transfer a parent loan to a student
- International students aren’t eligible
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.
Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.
pros
- Doesn’t charge origination or application fees
- Can refinance with an associate degree
- Offers a discount for autopay
cons
- Terms vary by the lender you choose
- Potentially need to meet membership requirements for certain credit unions or banks
Loan terms
5, 7, 10, 15, or 20 years
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Loan Amounts
$10,000 up to the total amount
Overview
The Massachusetts Educational Financing Authority (MEFA) provides refinancing options for student borrowers, even if you haven't earned your degree. While MEFA doesn't offer variable-rate loans, its fixed-rate options are competitive with what other lenders offer.
You can refinance loans starting at $10,000, but you'll need to have made six on-time payments on your current loans within the last six months to qualify. If your credit history isn't strong enough, you can apply with a cosigner. However, MEFA doesn't offer cosigner release, meaning the cosigner remains responsible until the loan is fully paid off.
pros
- You don’t need a degree to refinance
- View your estimated rate through prequalification
- No application, origination, or late fees
cons
- Variable rates are not offered; only fixed
- No autopay rate discount
- Cosigner can’t be released from the loan
- Parent loans are not eligible for refinancing
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.
One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.
pros
- Offers income-based repayment
- Forbearance periods of as long as 24 months available
- Graduate school deferment periods as long as 36 months
- Can refinance even without a degree
cons
- Cosigners cannot be released from loans
- Limited range of repayment terms
- Must have income of at least $40,000 to qualify
- Doesn’t offer variable-rate loans
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Fox Business does not make or arrange loans.
Meet the contributor:
Melanie Lockert
Melanie Lockert is a writer and author of “Dear Debt” and has more than 10 years of finance experience. Her byline has been featured by MSN, USA TODAY Blueprint, Business Insider, and Newsweek.
