How to Refinance Your Student Loans in 6 Steps [Federal and Private]

Refinancing your student loans can help you lower your interest rate, reduce your monthly payments, or pay off your debt faster. Whether you’re refinancing private student loans, or refinancing federal loans with a private lender, the process is largely the same—and this guide walks you through each step.

You’ll learn how to check your eligibility, compare lenders, complete your application, and understand the payoff and transfer process. We’ll also point you to helpful resources if you’re still deciding whether refinancing is the right move for your situation.

Table of Contents

1. Decide whether refinancing is the right move
2. Check your eligibility
3. Prequalify with several potential lenders
4. Choose the best refinancing lender
5. Complete a student loan refinance application
1. How long does it take?
2. What happens once you’ve been approved?
6. Review the offer and sign
7. Payoff and transfer

1. Decide whether refinancing is the right move

Refinancing can be a great way to reduce your interest rate, lower your monthly payments, or pay off student debt faster. But it’s not always the best move—especially if you have federal loans that offer benefits you’d lose by switching to a private lender.

Before you apply, it’s worth asking a few key questions:

Once you’ve weighed those considerations, you can use the refinance calculator below to estimate how much refinancing might save you over time.

Student Loan Information

Current Loan Balance

Annual Interest Rate

Loan Terms (Years)

Prepayment Goal

Pay off student loans faster by
contributing more per month

Pay off student loans by a
chosen date

Pay Off Student Loans in (Years)

Calculator Results

	Current	New	Savings
Repayment Length	years	years	years
Interest Payments
Total Cost

You could save overall on your student loans and pay them off years ahead of schedule.

Here’s my advice in December 2024: Given that interest rates recently dropped 25 basis points (0.25%), and Federal Reserve Chairman Jerome Powell indicated further rate cuts will be less likely in 2025, I recommend my clients who can refinance to a lower rate or more favorable terms (after due diligence of vetting at least three providers) go ahead with submitting their application.
Erin Kinkade, CFP®

Erin Kinkade , CFP®, ChFC®

2. Check your eligibility

There are seven key requirements you must meet to be eligible for student loan refinance.

Requirement	Why it’s important
Credit score	Most lenders check borrowers’ credit before refinancing to ensure the borrower is creditworthy (good score or better) and to assess how risky it is to refinance their loans.
Income	Lenders want reassurance that you’ll have sufficient income to make the payments on your loans once you’ve refinanced.
Debt-to-income ratio	In addition to knowing how much income you have, lenders are also interested in how much goes toward existing monthly debt payments.
Degree/field of study	Some lenders consider your degree or field of study for student loan refinancing to indicate your earning potential and ability to make loan payments over the long term.
Citizenship	Lenders may base eligibility on citizenship, with some lending only to U.S. citizens and others extending loans to non-citizens.
Cosigner	Your current loan may have a cosigner or co-borrower. Your refinanced loan may or may not require a cosigner depending on whether you can qualify for the loan on your own.
Loan amount	Lenders may have a minimum or maximum amount you can borrow for student loan refinancing.

Here’s what these requirements look like for several well-known lenders:

Lender	Min. Credit Score	Income Requirement	Degree Requirement	Citizenship Requirement	Cosigner requirement	Loan amount
ELFI	680	$35,000	Bachelor’s degree or higher	U.S. citizen or permanent resident	Optional, no cosigner release	$10,000 minimum
Earnest	650	Consistent income required	Associate’s or higher	U.S. citizen or permanent resident	Optional, no cosigner release	$5,000 minimum for most borrowers
SoFi	650	None, but must have disposable income	Associate’s or higher	U.S. citizen, permanent resident, non-permanent alien, DACA, asylum seeker	Optional, cosigner release after 24 months of on-time payments	$5,000 minimum
Nelnet Bank	Mid-600s	None	Bachelor’s degree or higher	U.S. citizen or permanent resident	Optional, cosigner release after 24 months of on-time payments	$5,000 minimum – $500,000 maximum
Credible	580+	Varies by lender	Varies by lender	U.S. citizen or permanent resident	Varies by lender	Varies by lender
RISLA	None	$40,000	Must attend Title IV degree-granting school (no minimum degree)	U.S. citizen or permanent resident	Optional, no cosigner release	$7,500 minimum – $250,000 maximum (CA: $10,000; NM: $10,000.01)

3. Prequalify with several potential lenders

Once you’ve decided to refinance, your next step is to see what kinds of rates and terms you might qualify for. Most private lenders let you prequalify online with just a soft credit check, so it won’t hurt your credit score.

Aim to submit prequalification forms to at least three to five lenders. This lets you compare real offers side-by-side, including interest rates, repayment terms, and any borrower benefits like forbearance options or autopay discounts.

Tip

Some lenders allow you to refinance with a cosigner, which may help you qualify for better rates. Others may cater to borrowers with specific needs, like transferring a Parent PLUS loan to a child.

4. Choose the best refinancing lender

After you’ve reviewed your prequalified offers, it’s time to choose the lender that best fits your financial goals. Here’s how to narrow it down:

Compare offers carefully. Look at the APR, loan term, monthly payment, and any fees like origination or prepayment penalties.
Read reviews. Customer experiences can offer insight into the lender’s service quality, flexibility, and support.
Understand the terms. Read the fine print so you’re clear on how your repayment schedule works, and whether there are any conditions that might surprise you later.

Tip

According to a CFPB report, some private lenders fail to clearly explain that refinancing federal loans removes protections like income-driven repayment and forgiveness. If you’re refinancing federal loans, double-check the fine print.

Here are a few top-rated lenders to consider:

Company	Best for…	Rating (0-5)
5.0 View Rates	Best for Comparison Shopping	5.0 View Rates
4.9 View Rates	Best Online Lender	4.9 View Rates
4.7 View Rates Powered by Credible	Best Personalized Support	4.7 View Rates Powered by Credible
4.6 View Rates	Best Skip-a-Payment Benefit	4.6 View Rates

By comparing lenders and researching what each one offers, you can find a lender that best suits your needs.

5. Complete a student loan refinance application

After you’ve prequalified for loans and selected a lender, it’s time to complete your refinance application. The process to refinance a loan is straightforward. Most lenders have online applications that make it easy to upload your necessary documents.

Having the required documents on hand before you start your application can help you to complete it much faster. Here’s what you’ll need:

Proof of income: Your lender will ask you to submit your most recent pay stubs. You might also need to provide your tax returns or W-2s.
Current student loan details: Your new lender will need your most recent student loan statement from your current lender.
Proof of identity: Your lender will ask you to upload a personal ID, such as your driver’s license or passport.
Social Security number: Your lender needs your Social Security number to run your credit.

How long does it take?

Some lenders complete the refinance process faster than others, but overall, it should take two to four weeks. Submitting your required documents right away and responding to your lender’s questions quickly can help make the process more efficient.

What happens once you’ve been approved?

Even if you got preapproved for a loan, your lender needs to verify your information. You’re officially approved for the loan once your lender sends you an offer. Although you likely want to sign your offer right away, lenders typically give you 30 days to review your offer.

6. Review the offer and sign

Before signing on the dotted line, it’s wise to check the details of your loan. Your loan paperwork will likely be a few pages long, and here’s what to look for:

Your repayment schedule
The interest rate
Fees, including origination fees
Your term

If any part of your loan offer looks confusing or is a different number from what you thought, contact your loan company right away. Taking on a new loan is a big decision, and it’s important to understand how much you’ll pay in interest over the term and whether you’ll need to pay fees.

If you have questions about your new loan and are waiting to hear back from your lender, keep making payments on your old loan until your account is paid in full. Lenders typically report late payments to the credit bureaus, which can harm your credit for years.

Tip

Many lenders offer discounts, such as a 0.25% reduction in interest rate if you sign up for autopay. If your new lender offers a discount like this, it’s smart to ensure the discount is in writing before signing.

7. Payoff and transfer

Once you sign your refinance loan documents, your new lender will pay off the loan you had with your old lender. When this happens, your old lender will send you an email or letter in the mail showing your account as paid in full. You’ll need to set up an account with your new lender to ensure you make your new payments on time.

The payoff and transfer process could take a few days to a few weeks, depending on your lenders. Again, continue making your payments on your original loan until it’s paid in full. If there is an overage, your old lender will send you a check for the difference. If you have questions about when to make payments, contact your lenders to ensure a seamless transition.

While the process to refinance a student loan can take time, it’s often worth it to secure a lower interest rate or more favorable terms than your original loan.

Tip

Refinancing student loans with a cosigner can make it easier to qualify and potentially snag a lower interest rate. Learn more in our guide.