Best Refinance Student Loans in October 2024 | Compare Lenders

Thinking about refinancing your student loans? Discover the best student loan refinance rates from reputable lenders such as Sofi and LendKey.

Student loan debt in the United States has reached $1.745 trillion, posing a significant financial burden on millions. This crisis affects both recent graduates and older borrowers, hindering their financial choices and investments. High tuition costs and a lack of financial literacy contribute to this cycle of debt, prompting demands for reforms in education funding and loan repayment.

Refinancing a student loan can help borrowers obtain lower interest rates or consolidate multiple loans, potentially saving money over time. Finding the right lender is crucial to getting the best deal on your refinanced student loan. Refinance rates vary by lender, credit score and loan type. It’s important to compare rates, fees, and repayment options to find the best lender for your situation.

Below, you'll find some of the best student loan refinance rates from the top lenders in the market today.

Quick Look at the 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 Low APR: Rhode Island Student Loan Authority
• Best for Flexible Loan Terms: College Ave Student Loan Refinancing

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:

Best Refinance Student Loans

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 fit for your needs.

1. Best for Members Low Interest Rates: SoFi

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 loan 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 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 Picked 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 that offer refinancing. LendKey can help you find the lowest available interest rates on student loan refinancing by acting as a brokerage with no loan origination fees. Student loan refinance rates start at 4.89% fixed APR or 5.31% variable APR, with AutoPay, with terms ranging from five to 20 years.

Why We Picked 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 student loan borrowers 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 3.99% for fixed-rate loans and 5.89% for variable rates. You'll need a minimum credit score of 680 or higher.

Why We Picked 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 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 refinance rates start at 6.34%.

Why We Picked It: RISLA's 25-year repayment assistance program provides relief to borrowers who may be struggling with their student loan payments. If a borrower is unable to afford their payments, RISLA will work a repayment plan for the borrowers to adjust the terms of the loan to make it more manageable.

5. 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 Picked It: With College Ave's flexible loan terms, student borrowers can choose from 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 education refinance loan options to suit your needs.

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.

Loan Consolidation vs. Refinancing

Consolidation and refinancing are both good options for taking control of student loan debt. Refinancing is an option to combine federal student loans 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. 

Student loan consolidation 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 plan options.  

Pros and Cons of Refinancing Student Loans

The pros and cons of refinancing student loans vary by financial situation. Here is an overview.

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 education 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: Student loan refinance 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 rates 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?

Refinancing loans doesn't make sense for everyone. If you have high-interest private or federal loans, refinancing may lower your interest rate and save you money in the long run. Additionally, it can simplify your payments by consolidating multiple loans into one. However, it’s important to consider the potential loss of federal loan protections, such as income-driven repayment plans and loan forgiveness opportunities, which can be invaluable for borrowers facing financial hardships. Therefore, it's crucial to thoroughly evaluate your current loans, interest rates, and future financial goals before making the decision to refinance.

Frequently Asked Questions