If you refinance student loans, you can change the rate and term of your loans, lower your monthly payment, and hopefully save money on interest. The catch? Your credit score plays a big role in whether you qualify.
Experian reports that about 28% of Americans have credit scores in the fair or poor range (a FICO score below 670), which can make it hard to get approved. If you fall into this group, there are steps you can take to boost your chances of approval. Shopping around with multiple lenders and applying with a cosigner, for example, are two approaches that can help.
Many lenders require a FICO score of 670 or higher to refinance student loans. However, minimum credit score requirements depend on the lender, and some lenders don’t advertise their minimums. A quick way to check if you might qualify is to prequalify first. Prequalification doesn’t hurt your credit score, but it can give you an idea of rates and your eligibility. Keep in mind that prequalification doesn’t guarantee an offer when you apply.
Lenders use your credit score when evaluating your approval for a refinancing loan, and this score also impacts the interest rate you get approved for. To access the lowest rates, you’ll generally need a credit score in the high 700s. But there are ways you can still qualify, even if your score is much lower than that.
Note:
When you apply for a loan, the lender will conduct a hard credit pull, which could drop your score by a few points for up to a year.
Check Out: Do student loans affect my credit score?
If you’re struggling to qualify on your own, try the following.
You may have limited options to refinance student loans with bad credit, but one way to change that is by refinancing with a cosigner. A cosigner is someone who shares legal responsibility for the loan. That means a cosigner is liable for payments if you skip out on them. The extra reassurance lowers the risk for lenders, making it easier to get approved.
To qualify, cosigners typically must meet the loan’s eligibility requirements. If your cosigner has a strong credit score, you might even qualify for a favorable rate. Just keep in mind that if you fail to make payments on time or miss them altogether, both your credit score and your cosigner’s will be negatively affected. Many private lenders accept applications with cosigners, including the following:
Advertiser DisclosureOverview
Brazos offers student loan refinancing exclusively to Texas residents who have earned at least a bachelor's degree from an eligible school. The company does not charge application or origination fees, and its interest rates could be lower than what you find with other private lenders.
However, Brazos has eligibility requirements that some borrowers might find to be difficult to meet. To qualify, borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can't meet those minimums alone, you can add a cosigner who can be released after making 24 consecutive payments.
pros
- Offers five loan terms
- Competitive rate offerings
- Cosigner release after two years
- Doesn’t charge application or origination fees
- A quarter-point rate discount for using autopay
cons
- Must be a Texas resident to qualify
- Higher minimum credit and income requirements than many other lenders
- Must have earned at least a bachelor’s degree to qualify
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
After 24 on-time, consecutive payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has at least one outstanding, fully disbursed education loan
$5,000 up to the full balance
Overview
SoFi®, an online lender established in 2011, offers student loan refinancing for undergraduate and graduate borrowers from Title IV schools. They also provide refinancing options for Parent PLUS loans and medical school graduates in residency or fellowship. With five repayment terms, SoFi caters to various budget needs, and you can prequalify with a soft credit pull, which won't impact your credit score. Loans are serviced by MOHELA.
SoFi stands out for its member perks, including no fees, an autopay discount, and a 0.125 percentage point interest rate reduction on additional SoFi loans for existing members.
pros
- Rate discounts, financial planning, and travel deals for members
- No application, origination, or late payment fees
- Autopay rate discount available
- You can refinance parent PLUS loans in the student's name
- Cosigner release available after 24 on-time payments
cons
- Must have at least $5,000 in loans to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 up to full outstanding balance
Cosigner release
Yes — after 24 months of consecutive on-time payments.
Eligibility
Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.
$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
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.
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
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.
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.
$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
Brazos offers student loan refinancing exclusively to Texas residents who have earned at least a bachelor's degree from an eligible school. The company does not charge application or origination fees, and its interest rates could be lower than what you find with other private lenders.
However, Brazos has eligibility requirements that some borrowers might find to be difficult to meet. To qualify, borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can't meet those minimums alone, you can add a cosigner who can be released after making 24 consecutive payments.
pros
- Offers five loan terms
- Competitive rate offerings
- Cosigner release after two years
- Doesn’t charge application or origination fees
- A quarter-point rate discount for using autopay
cons
- Must be a Texas resident to qualify
- Higher minimum credit and income requirements than many other lenders
- Must have earned at least a bachelor’s degree to qualify
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
After 24 on-time, consecutive payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has at least one outstanding, fully disbursed education loan
Loan Amounts
$5,000 up to the full balance
Overview
SoFi®, an online lender established in 2011, offers student loan refinancing for undergraduate and graduate borrowers from Title IV schools. They also provide refinancing options for Parent PLUS loans and medical school graduates in residency or fellowship. With five repayment terms, SoFi caters to various budget needs, and you can prequalify with a soft credit pull, which won't impact your credit score. Loans are serviced by MOHELA.
SoFi stands out for its member perks, including no fees, an autopay discount, and a 0.125 percentage point interest rate reduction on additional SoFi loans for existing members.
pros
- Rate discounts, financial planning, and travel deals for members
- No application, origination, or late payment fees
- Autopay rate discount available
- You can refinance parent PLUS loans in the student's name
- Cosigner release available after 24 on-time payments
cons
- Must have at least $5,000 in loans to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 up to full outstanding balance
Cosigner release
Yes — after 24 months of consecutive on-time payments.
Eligibility
Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.
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
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.
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
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.
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.
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.
If you’re not able to apply with a cosigner, a higher credit score may increase your approval odds and help you qualify for a lower interest rate. Remember, credit scores typically update monthly, so changes won’t be immediate. Here are some steps you can start taking today to help improve your score:
- Pay your bills on time: Your payment history has a major impact, making up 35% of your FICO credit score. Making on-time payments helps build a positive repayment history. Sign up for automatic payments or text alerts to stay on top of your bills.
- Lower your credit utilization: If you use a lot of your available credit, it can be a red flag to lenders. To help improve your credit score, aim for a credit utilization ratio of less than 30%. For example, if your credit limit is $7,000, aim to keep your balance below $2,100.
- Keep credit accounts open: You might think of canceling an old credit card, but if you’ve had it for a while, think again. The length of your credit history is 15% of your FICO score, so you want that time under your belt.
- Hold off on new credit applications: Applying for multiple loans and credit cards within a short time span can elevate your risk profile and hurt your credit score. New credit is 10% of your FICO credit score.
- Review your credit report: What’s in your credit report affects your credit score. Go to AnnualCreditReport.com to access credit reports from the three major credit bureaus, Experian, Equifax, and TransUnion. Verify the information is correct. If there is inaccurate information, dispute the errors immediately.
Some lenders have lower credit requirements than others, but you’ll still generally need at least a good credit score to qualify. For example, INvestEd has a minimum credit score requirement of 670. Education Loan Finance (ELFI) requires borrowers to have a score of at least 680. Some other refinancing lenders don’t disclose credit score requirements. When you compare lenders, look at factors like eligibility criteria, average interest rates, repayment terms, and cosigner release options.
Even if you have bad credit, there are multiple reasons to refinance student loans:
- Switch from a variable to a fixed rate.
- You can qualify for a lower rate.
- Change lenders or loan servicers.
- Change your repayment term for a lower monthly payment or a quicker payoff.
- Consolidate multiple student loans for a single monthly payment.
Warning:
The big risk with refinancing federal student loans is losing federal benefits, such as income-driven repayment (IDR) options and student loan forgiveness. If you have private loans, you don’t have the same risk and it can make sense to refinance.
If you don’t meet a refinancing lender’s credit requirements and you don’t have a cosigner to bring on, consider these alternatives to make your payments more manageable.
If your monthly payments aren’t affordable, you may be able to reduce them by enrolling in the new income-driven repayment plan, Saving on a Valuable Education (SAVE). The SAVE plan covers unpaid interest — which means the government will take care of monthly interest not included in your monthly payment. And monthly payments are determined based on the difference between your income and 225% of the poverty line. Plus, they’re set at a percentage of that difference, such as 5% for eligible undergraduate loans (starting in summer 2024).
This can potentially improve your credit score by ensuring your loans don’t fall into delinquency or default due to unaffordable repayment amounts. Additionally, your remaining debt is forgiven after your repayment period ends.
For borrowers with federal student loans, forgiveness programs can be a viable alternative to refinancing, especially for those with poor credit. If you work in public service, you may be eligible for the Public Service Loan Forgiveness (PSLF) program, which forgives the remaining balance on your loans after 10 years of qualifying payments. Loan repayment programs also exist for professionals in certain fields, such as education and health care.
A Direct Consolidation Loan can merge your federal loans and simplify your repayment. Consolidating doesn’t lower your interest rate like refinancing can, but it can make things easier. In some cases, you may be eligible for a new repayment option. For example, Parent PLUS loan borrowers can access the Income-Contingent Repayment (ICR) plan after taking out a Direct Consolidation Loan. ICR sets payments at 20% of your discretionary income or what you’d pay over a 12-year repayment period, adjusted to your income.
Many loan servicers offer borrowers an interest rate discount of 0.25 percentage points when you sign up for automatic payments. While it won’t lower your interest rate as much as student loan refinancing can, it can help. Just make sure you have the funds in your account to avoid overdrafts.
If you want to refinance student loans but have a low credit score, discuss options with your lender. You may qualify for deferment or forbearance if you’re facing financial hardship. These options can temporarily pause or reduce your loan payments, providing some financial relief when you need it most. Your lender can explain the qualifications for these programs and help you determine the best course of action based on your specific circumstances.
Meet the contributor:
Rebecca Safier
Rebecca Safier is a finance expert on student loans, personal loans and education. Her byline has been featured by Forbes Advisor, CNN Underscored and U.S. News & World Report.
