Banks to Refinance Student Loans

Refinancing student loans can help you secure a lower interest rate and better repayment terms. Finding the best lender is essential to take advantage of these benefits. Different lenders may have unique rates, fees, and term lengths.

Banks can be an excellent option for refinancing student loans. You can often take advantage of relationship discounts and personalized customer service. It’s a win-win for your student loan balance and bank account. Here are the best banks to consider for a student loan refinance.

Company	Rates (APR)	LendEDU rating
SoFi	5.24% – 9.99%	5/5
Credible ¹	5.24% – 12.43%	4.8/5
LendKey	5.24% – 9.60%	4.2/5
Citizens Bank	6.49% – 12.43%	4.1/5

4 banks for student loan refinancing

Refinancing student loans with a bank can help your monthly budget and loan balance. But it’s essential to find the right lender.

Only some banks refinance student loans. The top banks for student loan refinance offer low rates, accessible loan options, and excellent customer service. As you determine the best fit for refinancing your student loans, consider your finances, credit score, loan balance, and the interest rate on your current student loan. Minimum payment and term length are also important.

The following banks refinance student loans and earn the highest LendEDU editorial ratings.

SoFi

Best member benefits

5.0 _/5

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Why it’s one of the best

SoFi stands out for its extensive member benefits, which include financial planning, exclusive discounts, and networking events. These services go beyond typical loans, providing comprehensive support to help members succeed. SoFi’s holistic approach aims to improve overall financial health, making it a lender and a partner in its members’ financial journeys. SoFi offers competitive rates and no fees, ensuring borrowers get great value.

Extensive member benefits, including financial planning and networking events
Competitive rates with no origination, application, or prepayment fees
Wide range of loan amounts, covering 100% of certified costs

Qualification can be challenging for applicants with limited credit history or income and no cosigner
No specific repayment assistance programs listed for borrowers facing financial hardship beyond standard deferment and forbearance options
Cosigners are not released until after 24 consecutive on-time payments, which is longer than some competitors’ requirements

Loan details

Rates (APR)	5.24% – 9.99%
Loan amounts	$5,000 – total outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

Eligibility requirements

To refinance student loans with SoFi, you must meet its eligibility requirements.

Citizenship: Must be U.S. citizens, permanent residents, or eligible nonpermanent residents with valid documentation (including DACA recipients and asylum seekers).
State of residence: SoFi offers refinancing to residents of all 50 states and Washington, D.C.
Minimum age: Must be at least 18 or the age of majority in your state of residence.
Educational background: Must have graduated with at least an associate degree from a Title IV accredited institution.
Credit score: Minimum credit score of 650 is required.Income requirements: Should have a stable income. If your income is limited, a creditworthy cosigner can improve your chances of approval.
Loan amount: $5,000 minimum, with no maximum limit beyond the total outstanding balance of current student loans.

Credible

Best marketplace

4.8 _/5

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Why it’s one of the best

Credible is the premier marketplace for comparing student loan options, offering borrowers a transparent and efficient platform to find the best rates and terms. Credible simplifies the loan shopping process by allowing users to compare multiple lenders with a single application. Its user-friendly interface and extensive network of reputable lenders ensure borrowers can find the most suitable loan options. Credible also emphasizes transparency, with no hidden fees or surprises.

Allows comparison of multiple lenders with a single application
Transparent and user-friendly platform
No impact on credit score for prequalification
Wide range of loan terms and amounts available
Partner lenders include reputable institutions

Only shows rates from its partner lenders
Availability of specific loan terms and benefits may vary by lender
May require a cosigner for the best rates or if the borrower has limited credit history

Loan details

Rates (APR)	5.24% – 12.43%
Loan amounts	$1,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, or 15 years

Eligibility requirements

To refinance student loans with Credible, you must meet its eligibility requirements.

Credit score: Minimum credit score of 670 is generally preferred, but this can vary by lender.
Income: Verifiable income is required, though specific minimum income levels vary.
Citizenship: Must be a U.S. citizen or permanent resident.
Degree: A bachelor’s degree or higher is required, but this may vary.
Loan Amount: Minimum loan amounts start at $1,000.

LendKey

4.2 _/5

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Why it’s one of the best

LendKey leverages partnerships with community banks and credit unions to offer competitive rates and personalized service, often providing better terms than larger financial institutions. Its digital platform simplifies the loan application process, making it easy to find and secure the best rates available. LendKey offers additional benefits, including career counseling and financial literacy tools, which are valuable for students navigating their educational and financial futures.

Partners with community banks and credit unions
Offers career counseling and job placement services
Provides financial literacy tools

Loans not available in all states
Minimum loan amount of $2,000

Loan details

Rates (APR)	5.24% – 9.60%
Loan amounts	$5,000 – $300,000 (Min. for residents of AZ is $10,001; $15,001 for CT residents, & $6,000 for MA residents)
Repayment terms	5, 7, 10, 15, or 20 years

Eligibility requirements

To refinance student loans with LendKey, you must meet its eligibility requirements.

Citizenship: Must be a U.S. citizen or permanent resident.
State of residence: Not available to residents of Maine, Nevada, North Dakota, Rhode Island, or West Virginia.
Education: Must have graduated with at least an associate degree from a Title IV-eligible institution.
Credit score: A specific minimum credit score is not disclosed, but a strong credit profile will improve your chances of approval.
Income: Minimum income requirement not specified, but a stable income is necessary to qualify.

Citizens Bank

Best bank

4.1 _/5

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Why it’s one of the best

Citizens Bank offers a comprehensive range of student loan options and borrower-friendly features. Its Multi-Year Approval program simplifies future borrowing, reducing the need for repeated applications. Citizens Bank also offers loyalty discounts for current account holders. With no origination fees and a clear cosigner release policy, Citizens Bank provides a balanced mix of favorable terms and customer-centric policies.

Competitive rates and no origination fees
Multi-Year Approval option
Loyalty discount for customers

Cosigners can’t be released until 36 on-time payments are made

Loan details

Rates (APR)	6.49% – 12.43%
Loan amounts	$10,000 – $500,000
Repayment terms	5 – 20 years

Eligibility requirements

To refinance student loans with Citizens, you must meet its eligibility requirements.

Citizenship: Must be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number.
State of residence: Available in all 50 states and Washington, D.C.
Graduation status: If you don’t have a bachelor’s degree, you must have made at least 12 qualifying payments since leaving school.
Minimum income: A gross annual income of at least $12,000 is required, which can be combined with a cosigner’s income.
Loan amount: Must have at least $10,000 in student loans to refinance.

Best Student Loan Refinance Companies

Student loan refinancing with a bank vs. online lenders

Consider the differences between banks and online lenders when choosing where to refinance student loans.

For one, the application process for online lenders is simpler; if you apply at a bank, you may need to visit in person to fill out paperwork. Online lenders also cater to a broad range of borrowers, while traditional banks have stricter eligibility requirements, focusing on your income and credit score.

Banks may be less flexible regarding rates and terms. Online lenders can provide a wider variety of loan options with more customizable terms, offer better rate transparency, and often allow customers to view loan terms without a hard credit check.

Discounts are available through banks and online lenders, but the types of incentives vary. A traditional bank may reduce rates for customers with current accounts, while online lenders offer autopay discounts and referral bonuses. The chart below compares these differences and more.

Feature	Traditional banks	Online lenders
Application	May require in-person visits or more paperwork	Fully online, often faster and more convenient
Eligibility	Might be stricter, particularly regarding credit scores and income	More flexible, often catering to a wider range of borrowers
Interest rates	Often competitive, especially for current customers	Tend to be competitive and transparent
Fees	Generally no application or origination fees, but varies	Usually no fees for application or origination
Loan options	Standardized products	Variety of options, often with customizable terms
Benefits	Relationship discounts for current customers	Autopay discounts, referral bonuses, and more
Customer service	Personalized in-branch assistance	Online support, sometimes with live chat options
Cosigner release	May have longer requirements for cosigner release or not offer it at all	Some offer cosigner release after fewer on-time payments, but others don’t offer cosigner release

How to qualify for student loan refinancing with a bank

Banks tend to have more stringent eligibility requirements than online loan providers, making qualifying for student loan refinancing through a traditional lender more difficult. However, refinancing with a bank is a solid option for borrowers with good credit, a stable income, and a low debt-to-income ratio (DTI).

Most banks want borrowers to have a good to excellent FICO credit score of at least 670. You’ll also need a consistent income; banks will ask you to submit pay stubs, tax returns, or bank statements to verify your earnings.

A traditional bank will also base its lending decision on your debt-to-income ratio, which compares how much debt you repay monthly to your monthly gross income. DTI helps lenders assess your ability to take on additional debt and repay loans. Aim for a DTI of no more than 50%; lower is always better.

Whether through a traditional bank or online lender, student loan refinancing is often only available to U.S. citizens and permanent residents, but this varies by lender. Most lenders require borrowers to have completed at least an associate degree to qualify. A cosigner isn’t required, but it will improve loan approval odds.

Pros and cons of student loan refinance with banks

Different types of lenders refinance student loans: online-only banks, traditional banks, credit unions, and online lenders.

Traditional and online-only banks offer unique benefits compared to the other types of lenders. However, consider the potential drawbacks too. Here’s what to consider when choosing a bank for your student loan refinance.

Pros

Easier to qualify as a member

Some banks have less stringent eligibility requirements for members, which might make it easier to qualify.
Unique benefits and more discounts

Banks might provide the ability to skip a payment, hardship assistance, referral bonuses. and rate discounts.
Robust customer service team

Banks often have strong customer support, including phone, chat, and email access.

Cons

Different types of banks

Your experience might differ depending on whether you work with an online-only, regional, or national bank, making it difficult to determine whether it’s the right fit.
Traditional banks might have higher rates

Due to higher overhead costs, some traditional banks have higher rates than online lenders, including online-only banks.
Application process might differ

Depending on the bank, you might need to apply in person, which is a dealbreaker for some borrowers.
Banks only offer private loans

If you refinance a federal loan with a bank, you lose federal benefits, such as access to income-driven repayment programs, repayment deferment, and student loan forgiveness.

You must know your loan type before deciding to refinance with a bank. Refinancing a federal student loan to a private loan could be expensive.

Kyle Ryan

CFP®

Refinancing student loans with national banks vs. regional banks

Working with a bank to refinance student loans often makes sense, but it’s wise to understand the type of bank you’re working with. Many banks work with borrowers in every state, but here are several differences between national and regional banks:

Regional: These banks only have locations in certain regions within the country. You might be able to work with the bank if you live in a different region, but not always.
National: Banks with locations in most states are national banks. These banks have more total assets and work with customers across the country.

If you’re unsure which type of bank makes the most sense, consider these questions:

Do you already have an account? National banks often provide more competitive interest rates and less stringent qualification requirements for members.
Are you concerned about qualifying? Regional banks might have more flexibility with underwriting.
Is a location nearby? Regional banks might require an in-person application and provide strong customer support at local branches.
Do you have a strong credit history? National banks may offer competitive rates and terms for borrowers with excellent credit.

Our expert’s advice

Kyle Ryan

CFP®

Competitive rates are always the rule of thumb for choosing a lender. Depending on your financial situation, one lender may be more favorable than another due to unique programs you can take advantage of (such as skipping a payment or having a longer term). Determine whether these programs come with a cost, whether hidden or transparent.

Is refinancing student loans with a bank right for you?

Traditional banks and online lenders offer viable options for refinancing student loans; the right choice depends on your own needs and preferences.

Use the table below to help determine whether refinancing with a bank or an online lender is best for you:

Consider refinancing with a bank if…	Consider an online lender if…
You already have a relationship with the bank	You need a faster application process
You have a strong credit profile	You have a lower credit score
You prefer in-person service	You prefer managing finances online
You seek additional banking services	You want additional flexibility
You prefer established institutions	You’re looking for more competitive rates

How to refinance student loans with a bank

Here’s how to apply with a bank to refinance your student loans.

Prepare the documents: Ensure you have proof of identification and income. If you have a cosigner, they need the same documents.
Complete the application: Most lenders allow you to complete the application online. Some lenders approve applications instantly, but others take up to three business days.
Understand the fine print: Read the offer from the lender, including term length, interest rate, and fees. Ask questions if you have any.
Finalize the loan: Sign the final documents, and the lender will disburse the funds, which usually appear in your account within a few business days.

Best Student Loan Refinance Companies

FAQ

What credit score is needed to refinance a student loan with a bank?

The credit score needed to refinance a student loan with a bank could range from 650 to 700 or higher. Most lenders prefer borrowers with good to excellent credit scores to qualify for the best rates and terms. However, some lenders may accept lower credit scores, especially if you have a cosigner with a strong credit history.

Can you refinance student loans with any bank?

Not all banks offer student loan refinancing. Be sure to find a bank that offers these options. Researching and comparing lenders is essential to finding the best terms and rates for your financial situation.

Is it hard to get student loans refinanced?

The difficulty of refinancing student loans depends on several factors, including your credit score, income, employment history, and debt-to-income ratio. Borrowers with strong financial profiles and good credit scores may find it easier to qualify for refinancing. If your credit score or financial situation is less than ideal, you may face more challenges, but a creditworthy cosigner can improve your chances of approval. It’s important to shop around and consider multiple lenders to find the best refinancing options.

How we chose the best banks for refinancing student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of banks to refinance student loans

Company	Rates (APR)	LendEDU rating
SoFi	5.24% – 9.99%	5/5
Credible	5.24% – 12.43%	4.8/5
LendKey	5.24% – 9.60%	4.2/5
Citizens Bank	6.49% – 12.43%	4.1/5