Find the lowest student loan refinance rates and start saving on your monthly payments today. Compare offers from reputable lenders such as Sofi and LendKey.
Student loan refinancing is the process of taking out a new loan to pay off existing student loans. This can be a smart financial move for many borrowers, especially those with high interest rates or multiple loans. With the rising costs of education, many graduates find themselves burdened with student loan debt that can take years to pay off. By refinancing, you can potentially lower your monthly payments, reduce the total amount you pay over the life of the loan or even pay off your loans faster.
Student loan refinance rates can vary depending on the lender, your credit score and the type of loan you are refinancing. Finding the right lender is crucial to getting the best deal on your refinanced student loans. Take time to compare rates, loan fees and repayment plan options to find the best fit for your financial situation. Below, you'll find some of the best student loan refinance rates currently available on the market, including prepayment or origination fees from top lenders.
Quick Look: Top Lenders With the Best Student Loan Refinance Rates
- Best for Members Low Interest Rates: SoFi
- Best for Low-Income Refinancing: LendKey
- Best for Budget Flexibility: Earnest
- Best for GPA Qualifications: A.M. Money
- Best for Low APR: Rhode Island Student Loan Authority
- Best for Flexible Loan Terms: College Ave student loan refinancing
The Best Student Loan Refinance Rates from Top Lenders
From low interest rates to flexible repayment terms, the best lending companies for student loan refinancing can help you save more and take control of your finances. Explore and compare top options to find the best the fit for your needs.
1. Best for Members Low Interest Rates: SoFi
- Best For:Low fixed or variable ratesVIEW PROS & CONS:securely through SoFi Student Refi Loans's website
Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay
discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20-
year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/06/24 and are subject to change at any time. Your actual rate will be within the
range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other
factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived
by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of
one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate
reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This
benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest
rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required
to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.
SoFi, short for Social Finance, is a financial company that offers a variety of loan products, including private student loans and student refinance loans. With SoFi student loans you can refinance all professional degrees in a single loan, with no origination fees, pre-payment or late fees. If you're already a SoFi customer, you could get better terms. You'll need at least an associate’s degree, but SoFi doesn't limit how much you can refinance.
SoFi doesn't offer a co-signer release or the lowest student loan refinance rates. However, existing SoFi customers could get a 0.125% interest rate discount on other products. Refinancing loan terms range from five to 20 years.
Why We Love It: With SoFi student refinance loans, you can take advantage of competitive interest rates and flexible repayment options of up to 20 years. Plus, SoFi customers can enjoy additional member benefits, including career coaching and unemployment protection program.
2. Best for Low-Income Refinancing: LendKey Student Loan Refinance
Unlike other options on the list, LendKey isn't the lender. Instead, the company pairs you with multiple student loan lenders to offer student loan refinancing. LendKey can help you find the lowest available interest rates on student loan refinancing by acting as a brokerage with no origination fees. Student loan refinance rates start at 5.24% fixed APR or 5.54% variable APR, with AutoPay, with terms ranging from five to 20 years.
Why We Love It: LendKey allows students to submit one application to compare multiple lenders offering student refinance loans. This not only saves time and hassle, but also allows students to have a better understanding of their options and make an informed decision when choosing a lender.
3. Best for Budget Flexibility: Earnest
Earnest offers flexibility to pay student loans on your terms. If you need flexibility in your budget, Earnest offers a cushion. It lets you skip one payment every 12 months and tack that payment onto the end of the loan term.
You can choose from various loan options and terms, with up to 180 different term lengths and intervals for as short as a month or many years. Annual percentage rate starts from 4.99% for fixed-rate loans and 5.89% for variable rates. You'll need a minimum credit score of 680 or higher.
Why We Love It: We love Earnest because of its skip-a-payment option. By skipping a payment, students can redirect those funds towards their other financial objectives without incurring additional fees or penalties.
4. Best for GPA Qualifications: A.M. Money
Unlike other refinancing options, you can qualify for A.M. Money refinance student loans based on your educational background and grade-point average (GPA) rather than your credit score. It also offers income-based repayment plans for up to 36 months. Minimum payments are $50.
However, there are a few negatives: A.M. Money does not allow co-signers, and it charges a 4.5% origination fee. In addition, unpaid loans default sooner than most other lenders, as soon as 14 days. While it's not currently offering loans, you can enter your info to be notified when loans are available again.
Why We Love It: We love A.M. Money because of its GPA qualification system, no credit score needed. This requirement not only encourages students to prioritize their academic success, but it also ensures that students who are serious about their studies are the ones who have access to these opportunities.
5. Best for Low APR: Rhode Island Student Loan Authority
Rhode Island Student Loan Authority (RISLA) refinances loans for customers nationwide. Unlike income-based repayment programs, this nonprofit limits payments to 15% of discretionary income for up to 25 years if student borrowers can’t afford their payments. It also offers a forbearance period of up to 24 months for loans disbursed on or after Jul. 1, 2021. Student loan rates start at 7.30%.
Why We Love It: We love RISLA because of its 25-year repayment assistance program, which is designed to provide relief to borrowers who may be struggling with their student loan payments. If a borrower is unable to afford their payments, RISLA will work with them to adjust the terms of their loan to make it more manageable.
6. Best for Flexible Loan Terms: College Ave Student Loan Refinance
College Ave is an online lender that offers student loan refinancing with nonstandard loan terms, such as seven or nine years. You can also make repayments while you're still in school.
College Ave loans are good for those who want an assortment of repayment plans and the option to prequalify for a loan. But if you have poor credit or inconsistent income, retaining federal student loans can offer better rates.
Why We Love It: With College Ave's flexible loan terms, student borrowers can choose from 11 different repayment terms. Whether you prefer a shorter repayment term to pay off your loan quickly or a longer term with lower monthly payments, College Ave has options to suit your needs.
Compare Student Loan Refinance Rates from Top Lenders
Find some of the best student loan refinance rates from the top private financing lenders and compare options here:
| Lender | Terms | Interest rate range | Credit score requirements |
| SoFi | 5, 7, 10, 15 or 20 years | 5.24%-9.99% | Good to excellent |
| LendKey | 5, 7, 10, 15 or 20 years | 5.24%-9.60% | Fair to excellent |
| Earnest | 5 to 20 years | 4.99%-11.95% | Fair to excellent |
| A.M. Money | 10 years | 7.95%-8.87% | Fair to excellent |
| Rhode Island Student Loan Authority | 5, 10 or 15 years | 7.30% - 8.52% | Fair to excellent |
| College Ave | Various loan terms | 6.99%-13.99% | Fair to excellent |
What Is Student Loan Refinancing?
Student loan refinancing is an option to consolidate student loans or refinance at a lower interest rate. Refinancing student loans may help you pay less interest over time or secure a longer repayment term to free up finances for other goals.
Types of Loans Eligible for Refinancing
Most student loans can be refinanced. That means you can refinance federal student loans and private student loans, as well as both fixed- and variable-rate loans. However, you must meet lender qualification criteria to obtain the student loan refinance rates you're hoping for. Eligibility criteria can include a good credit score, stable income, low to moderate debt-to-income ratio, a degree and a possible co-signer.
Consolidation vs. Refinancing
Consolidation and refinancing are both good options for taking control of student debt. Refinancing is an option to combine federal and any private student loans into a single new loan with a single monthly payment. In contrast, student loan consolidation combines federal loans into a single new loan amount. Both are good options, but refinancing means you will give up federal student loans for a single private student loan.
Consolidating is a better option than refinancing to maintain federal loan benefits. Refinancing can be a good option if you want simplified payments, extended terms or more flexible repayment options.
Pros and Cons of Refinancing Student Loans
The pros and cons of refinancing student loans vary by financial situation. Here is an overview.
Pros
- Repaying with lower interest rates
- Possibly lowering your overall costs
- A longer repayment period can lower monthly payments
- Make a single payment for all student loans
Cons
- You lose all federal benefits
- You may not get better interest or loan terms
- Borrowers with a lower income or a credit score under 650 may have more difficulty to qualify
Is Refinancing Right for You?
When to consider refinancing depends on your financial situation. If you have a higher-interest rate private student loans or prefer to consolidate student loans into a single loan payment, refinancing can be a good choice. If you have low-interest federal student loans or if you are close to paying off student loans, refinancing usually isn't a good choice.
If your monthly payments are high and you can refinance with better terms or a longer repayment period, refinancing can be a good choice. It can free up necessary cash in your monthly budget to focus on long-term savings or other personal finance goals.
How to Refinance Your Student Loans in 4 Steps
You must meet each lender's credit score, income requirements and other criteria to qualify for student loan refinancing. Usually, this requires stable employment and a credit score of 660 or above, but some lenders may be willing to consider other criteria such as degree or GPA. Learn how to increase your credit score or even get an 850 credit score.
Follow the step-by-step process below to refinance student loans.
1. Compare rates and requirements from various lenders: Rates, fees, terms and application requirements vary from lender to lender. Consider getting quotes from at least three lenders that don't perform hard credit checks.
2. Choose a lender and loan term: Consider financial aspects such as interest and fees, as well as other factors like forbearance periods and total loan terms when choosing a lender. Check customer reviews and the lender's ranking with the Better Business Bureau.
3. Apply for refinancing: You will need to submit a formal application with the lender, which may also ask for information regarding total income, total loan debt and credit profile. Applicants must provide the following documents as part of the requirements for student loan refinancing:
- Government-issued ID
- Social Security number (SSN)
- Loan payoff statements from existing student loans.
- Proof of graduation
- Proof of employment, including pay stubs, W-2s and bank statements
To maximize your chances of loan approval and the most favorable terms, consider lowering your debt-to-income ratio by paying off other debts and raising your credit score.
4. Keep paying off your debt as you wait for your loan: Paying off current debts on time is important while waiting for loan approval as it can lower total debt, improve credit score and increase the chances of approval.
Should You Refinance Your Student Loans?
Student loan refinancing doesn't make sense for everyone. If you have low-interest federal loans, it's usually a good idea to work to pay them off instead of refinancing. Learn which student loans to pay off first to build a personalized strategy.
Refinancing can be a smart financial move if your current loans have a high interest rate or you need a longer repayment term or lower monthly payments. Ready to get started? Find private student loans with bad credit or no credit or find some of the best student loans here.
Frequently Asked Questions
Can you refinance a student loan more than once?
You can refinance your student loans as often as you’d like, as long as you meet lender requirements.
Does refinancing impact my credit score?
Refinancing can temporarily impact your credit score. However, with regular on-time payments, it shouldn’t harm it over time.
Do I qualify for student loan forgiveness if I refinance?
If you refinance student loans with a private lender, you don’t qualify for student loan forgiveness.
Can you refinance student loans for a lower rate?
Yes, you may be able to refinance student loans for a lower rate, but you’ll need to compare lenders’ rates and terms to find the best options.
Can I refinance my loan if I have bad credit?
Yes, you can refinance your loan if you have bad credit, but you might have limited creditor options and will generally only qualify for higher interest rates.
Is it worth refinancing government student loans?
Refinancing government student loans can be worth it if you can secure a lower interest rate or better repayment terms.
- Best For:No origination feesVIEW PROS & CONS:securely through SoFi Personal Loans's website
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
About Alison Plaut
Alison Kimberly is a freelance content writer with a Sustainable MBA, uniquely qualified to help individuals and businesses achieve the triple bottom line of environmental, social, and financial profitability. She has been writing for various non-profit organizations for 15+ years. When not writing, you will find her promoting education and meditation in the developing world, or hiking and enjoying nature.