7 Best Student Loan Refinance Rates of 2024

Refinancing student loans can get you a better interest rate, potentially resulting in major savings over the life of your loan. You'll also get the chance to choose new repayment terms and adjust your monthly loan payments to fit your budget.

To refinance student loans, you'll generally need a credit score in the high 600s (at the very minimum) and proof of steady income. If you don't have either, you may be able to qualify for a refinance loan by bringing on a creditworthy cosigner.

Before choosing a lender, compare the best student loan refinance rates and make sure refinancing is right for you.

Compare student loan refinance rates

Best student loan refinance rates 

Other refinance lenders to consider

SoFi: Best for member benefits

SoFi offers competitive fixed interest rates for student loan refinancing, with the best rates reserved for borrowers with strong credit. If you don’t have great credit, you have the option of adding a cosigner, although SoFi doesn’t offer cosigner release on its refinance loans. The lender stands out for its generous no-fees policy and member perks that include deferment, forbearance, financial planning, referral bonuses, and more.

Earnest: Best for flexibility

Earnest is a lender known for its competitive rates and customizable loan terms that let you specify the exact number of months in your repayment period. The lender prioritizes flexibility in student loan refinancing, allowing borrowers to choose between biweekly or monthly payments, and the option to skip one monthly payment per year without penalty — also known as a one-month forbearance.

Methodology

We evaluated these student loan refinance 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. Read our full methodology for more details.

Should I refinance my student loans? 

Consider refinancing your student loans if it would be beneficial for your finances. If you have good credit (or a cosigner who does), you may be able to qualify for a better interest rate than you have now. 

Let’s say you currently owe $25,000 in student loans at a 10% interest rate. If you’re able to bring that rate down to 7%, you could save $4,813 on interest, assuming a 10-year repayment term.

You’ll also get to choose new repayment terms. A shorter term can get you out of debt faster, while a longer term will reduce your monthly payments. Keep in mind that a longer repayment term will also result in paying more interest over time.

Tip: Don’t refinance federal student loans if you’re relying on any federal benefits. Federal student loans are eligible for programs such as income-driven repayment, deferment, forbearance, and forgiveness. Refinancing federal loans would mean you lose eligibility for these programs.

Related: Should I refinance my student loans?

Pros and cons of refinancing 

It’s important to consider the pros and cons of refinancing student loans before you apply.

Benefits

• Get a better interest rate: If you have great credit (or a cosigner with strong credit), qualifying for a lower interest rate could result in significant savings over the life of your student loan.
• Choose new repayment terms: Most refinancing lenders offer terms from 5 to 20 years, so you can choose a repayment schedule that works for your budget.
• Combine several loans into one: If you refinance multiple loans, you can simplify repayment by consolidating them into a new loan with a single monthly payment.

Drawbacks

• Not everyone will qualify: You’ll need to meet credit and income requirements (or apply with a cosigner who has good credit) to qualify for a refinance loan. The lowest interest rates are reserved for borrowers with the best credit.
• You may not save money: If you have bad credit, you may not be able to qualify for a lower interest rate than you have on your current student loans, and you’ll risk paying more money over time.
• Sacrifice federal benefits and protections: Refinancing federal loans means forfeiting access to federal income-driven repayment plans, forbearance, and forgiveness programs. Private lenders typically don’t offer the same level of flexibility if you run into financial hardship.

Eligibility requirements to refinance

The specific eligibility requirements for a student loan refinance will vary by lender, but you’ll generally need to meet the following:

• Have decent credit: Lenders usually want to see a fair or good credit score, as well as a credit report without red flags, such as loan delinquencies or default.
• Verify a source of income: You’ll need to prove that you have the means to pay back your loans through W-2s, 1099s, or pay stubs. 
• Show an acceptable debt-to-income ratio (DTI): Your DTI compares your monthly debt payments with your gross monthly income. Lenders usually want to see a DTI below 50%, though one below 36% is even better.
• Provide information on your school and loans: You’ll need to provide information on your loan balance, lenders, and the school you attended. Some lenders want to see proof that you graduated with your degree to qualify for refinancing.

How to choose the right refinancing lender

There’s no shortage of options when it comes to student loan refinancing lenders. Here are some factors to consider when comparing your options: 

• Annual percentage rate (APR): APR is a percentage that represents the total annual cost of borrowing, including interest and fees. Search for a lender that can offer you the lowest APR possible. 
• Repayment terms: You can often choose terms from 5 to 20 years. Look for a lender that offers terms that work for your monthly budget. 
• Loan amounts: Lenders set their own minimum and maximum amounts that you’re able to refinance. 
• Fees: Keep an eye out for any application, origination, or disbursement fees that could add to your loan costs. 
• Eligibility requirements: Find out the lender’s requirements for credit, income, and other criteria to make sure you can qualify. 
• Customer service channels: An accessible customer support team can make or break your loan experience. Consider whether the lender offers customer service over the phone, email, or web chat. 
• Reviews: You might also read reviews on a site like Trustpilot or the Better Business Bureau to see what other borrowers have to say about working with the lender. 

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Steps to refinance student loans 

If you decide student loan refinancing is right for you, here are the general steps you’ll need to take to get a loan: 

1. Check your credit score: Your credit plays a big role in the approval process. You can check your score with a free credit monitoring service, with your credit card company, or on myFICO.com. 
2. Consider which loans to refinance: You may not want to refinance all of your student loans if it’s not beneficial. For instance, you might refinance high-rate private loans while leaving a low-rate federal student loan as it is.
3. Research lenders: Compare various refinancing lenders, such as banks and online lenders, and review their eligibility criteria to see which one would be a good fit. 
4. Prequalify for refinancing offers: Many lenders let you prequalify for student loan refinancing online. This quick process lets you check your preliminary rates without impacting your credit. 
5. Submit your application: Once you’ve chosen a lender, you’ll fill out an official application and provide required documentation, such as pay stubs, identification, and student loan statements. This part of the process usually involves a hard credit check. 
6. Pay back your new loan: Once your refinancing provider pays off your old loans and issues your new one, you’ll start paying it back on your agreed-upon terms. 

Related: How to refinance student loans

Frequently asked questions

Is it a good idea to refinance federal student loans? 

Refinancing federal student loans may not be a good idea if you want to retain access to federal repayment plans, forgiveness programs, or other benefits. When you refinance federal loans with a private lender, you lose eligibility for federal student loan protections. However, if you don’t plan on using any federal benefits and are confident about your ability to pay back your loan, you could consider refinancing your federal student loans. 

What’s the difference between consolidation and refinancing? 

Direct Loan consolidation is a process that combines federal student loans into one. It can simplify the repayment process, but it won’t reduce your interest rate. Refinancing, on the other hand, is provided by private lenders. Both private and federal student loans can qualify for refinancing, and you may get a better interest rate than you have now. Similar to consolidation, refinancing can combine several loans into one. However, refinancing federal student loans means losing eligibility for federal benefits. 

What credit score do I need to refinance student loans? 

The credit score you need to refinance student loans varies by lender. Some accept fair credit scores, which start at 580 on the FICO scoring model, while others want to see a good score, which starts at 670. A higher credit score will make it easier to qualify for student loan refinancing and access better interest rates.