10 of the best student loan refinance companies

If you have student loan debt, refinancing your student loans can come with several benefits. You can lock in a lower interest rate, lower your monthly payments, or take advantage of a flexible repayment plan. You may also release a cosigner, switch to a lender with better service, or consolidate multiple loans into one.

While federal student loan payments have been paused since March 2020, payments will resume starting in October 2023. In addition, the Supreme Court recently struck down the Biden administration’s forgiveness plan, which would have offered up to $20,000 in loan forgiveness for borrowers.

With these developments, review your refinancing options and see if it makes sense for you.

• Brazos
• Citizens Bank
• College Ave
• EdvestinU
• ELFI
• MEFA
• Nelnet
• RISLA
• Bottom line

1. Brazos

Texas residents with an income of at least $60,000 may be eligible to refinance up to $149,000 of undergraduate debt or $249,000 in graduate student loans with Brazos. Both variable and fixed-rate loans are available. Borrowers have a choice of repaying their new loan over five, seven, 10, 15 or 20 years and economic hardship forbearance offers the option to pause payments for up to 12 total months if needed.

Pros: Benefits to borrowers include no origination or prepayment fees and the choice of variable or fixed-rate loan options.

Cons: But borrowers need to have a high minimum annual income to qualify, which is a big disadvantage. Cosigner release also is not available, which is another downside of refinancing with this lender.

SHOULD YOU CONSOLIDATE OR REFINANCE YOUR STUDENT LOANS?

2. Citizens Bank

Citizens Bank refinance loans are available nationwide to U.S. citizens, permanent residents, and resident aliens with an eligible cosigner. Borrowers must have at least $10,000 in student loans to refinance with this lender and can refinance up to $149,000 in undergraduate loans or $150,000 in graduate loans. Fixed-rate loans are available. Loans can be repaid over five, seven, 10, 15, or 20 years and cosigner release is available after 24-36 months of on-time payments.

Pros: Borrowers benefit from the choice of variable or fixed rate loans, the opportunity to refinance without first completing a degree, and no prepayment or origination fees.

Cons: But there are some disadvantages including the fact that a disability discharge option is not offered and no minimum credit score is disclosed. The good news is, would-be borrowers can find out eligibility with only a soft credit check.

WHAT HAPPENS IF YOU DEFAULT ON A STUDENT LOAN?

3. College Ave

College Ave offers loans to U.S. citizens and permanent residents except for people residing in Maine. Fixed-rate and variable loan options are available. Borrowers have a choice of a five, seven, 10, 12, 15, or 20-year repayment term and forbearance is available in case of financial hardship. It's possible to apply with a soft credit check and refinance up to $149,000 in undergraduate debt or $150,000 in graduate debt.

Pros: The big pros of borrowing with College Ave include no prepayment or origination fees, the choice of variable or fixed rates, and the chance to apply for a loan with only a soft credit check.

Cons: Unfortunately, the downsides include the lack of availability for Maine residents and the fact the lender doesn't disclose the minimum credit score required to gain approval.

STUDENT REFINANCING RATES GOING DOWN - HERE'S WHY

4. EdvestinU

Nonprofit EDvestinU is part of the New Hampshire Higher Education Assistance Foundation (NHHEAF) Network and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available. While the company doesn't disclose its minimum credit score, you can refinance loans up $200,000 with terms ranging from five to 20 years.

Pros: EdvestinU does not require a degree for refinancing, and you can refinance while still in school. More benefits include an Autopay discount of 0.25 percentage points, and prequalification is available.

Cons: Unfortunately, refinancing is only available in select states. EdvestinU's minimum loan balance is higher than some competitors and maximum balance is lower. Additionally, cosigner release requirements are strict

5. ELFI

ELFI loans are available to U.S. citizens or permanent residents who have earned a degree and who have at least $15,000 in student loan debt. Borrowers need a credit score of at least 680 to qualify and can choose between a variable or fixed rate loan. Loans can be repaid over five, seven, 10, 12, 15 or 20 years and forbearance is an option for up to 12 months in case of financial hardship.

Pros: The benefits of choosing ELFI include the choice of variable or fixed rate loan options, the fact the lender charges no fees, forbearance options in case of hardship, and the opportunity to earn a referral bonus.

Cons: However, the downsides of this lender include the absence of discounts or options for cosigner release.

6. MEFA

MEFA loans come from the Massachusetts Educational Financing Authority but are available to residents of any state. Variable and fixed rate loan options are available and borrowers can repay loans over seven, 10, or 15 years. MEFA requires a minimum of $10,000 in student loans to refinance with them, as well as a minimum credit score of 670. There's no loan maximum limit, making this lender a good choice for borrowers with ample student debt.

Pros: Benefits of borrowing with MEFA include refinance options for people who haven't completed a degree, the choice of variable or fixed rate loan options, and the fact there aren't any origination fees or prepayment fees when applying with this lender.

Cons: But the lack of any discounts, including a reduced APR for autopay, is a big downside, as is the fact MEFA doesn't allow cosigner release or provide any forbearance or deferment options.

7. Nelnet Bank

While Nelnet has been a long-time servicer of federal student loans, Nelnet Bank was founded in 2020 as the company's private student lending arm. The lender doesn't disclose it's minimum credit score, but you can refinance anywhere from $125,000 to $500,000 of student debt, depending on your degree. Loan terms range from five to 20 years.

Pros: Nelnet Bank offers high maximum loan amounts and the option to refinance parent PLUS loans into student's name. Prequalification is also available.

Cons: Graduation is required to refinance, and credit and income requirements are not disclosed

8. RISLA

The Rhode Island Student Loan authority allows borrowers from any state to refinance with them, provided eligibility requirements are met including having a minimum income of $40,000 and owing at least $7,500 in outstanding student loans. Up to $249,000 in educational debt can be refinanced and the new loan can be repaid over five, 10, or 15 years.

Pros: The big advantage of RISLA is that the minimum credit score requirement of 680 is low, so more borrowers can qualify. The lender also makes refinance loans available even without a completed degree and there are no prepayment or origination fees.

Cons: However, the disadvantage of choosing this lender is that cosigner release is not available.

Bottom line

If you have the financial means to refinance student loans right now you could save money in the long run.

In spring 2020, the Federal Reserve announced two major rate cuts to provide relief for Americans suffering economic hardships due to the coronavirus pandemic. The interest rate cuts (the first emergency move since 2008) has benefitted student loan borrowers who may not have been able to meet their monthly loan repayment deadlines.

"When the Fed lowers interest rates, banks can borrow at lower interest rates which, hopefully, will entail them lowering interest rates for borrowing for their customers," Clint Haynes, a Certified Financial Planner, financial advisor, and owner of NextGen Wealth in Kansas City, Missouri, previously explained.

So, if you have private student loans (rate cuts don't impact federal student loans, which have fixed rates) and want to save some cash, it's worth weighing your refinancing options.

BORROWERS MAY SEE CREDIT SCORE CHANGE ONCE FEDERAL STUDENT LOAN PAYMENTS RESUME

Frequently asked questions

• Is it worth it to refinance student loans?
• Should you refinance student loans now?
• Should you consolidate or refinance your student loans?
• Does debt-to-income ratio impact student loan refinancing?
• What qualifies you for student loan forgiveness?