Best Student Loan Refinance Companies

The best student loan refinance companies offer low rates and have a proven history of supporting borrowers during repayment. We selected our top picks based on meticulous research into rates, repayment terms, unique benefits, borrower experience, and more.

In this comparison table, check out our ratings and best-for designations for each lender.

Reviews of the 4 best student loan refinance companies

Continue reading to learn more about each lender and find one that aligns with your financial goals.

• Best online lender: SoFi
• Best for comparison shopping: Credible
• Best personalized support: ELFI
• Best skip a payment benefit: Earnest

SoFi

Best Online Lender

5.0 _/5

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Why SoFi is one of the best

SoFi earns our top online lender designation for its no-fee structure and extensive borrower benefits.

SoFi offers its borrowers financial planning advice, a generous referral program, and invitations to member-exclusive networking events.

In addition, borrowers get a 0.25% discount when enrolled in automatic payments.

Refinance private or federal loans, undergraduate and graduate student loans, and specialized loans such as Parent PLUS, MBA, law, and medical school loans with SoFi. It also offers refinancing for medical residents.

• Refinance your total outstanding loan balance
• Checking your rates doesn’t affect your credit

Fixed APR	5.24% – 9.99% w/ autopay
Variable APR	6.24% – 9.99% w/ autopay
Loan Amounts	$5,000 – 100% of outstanding balance
Repayment Terms	5, 7, 10, 15, or 20 years

Eligibility requirements

• U.S. citizen or permanent resident
• Lends to all 50 states + District of Columbia
• Credit score of at least 650 (or apply with a cosigner with at least that credit score)
• No minimum income requirement, but you must have free cash available after monthly expenses
• Proof of employment or job offer starting within 90 days
• Associate degree or higher from a Title IV accredited school

Repayment details

• Choose between five, seven, 10, 15, or 20-year repayment terms.
• SoFi sends funds to current loan servicers after signing final documents and a three-day rescission period. First payment to SoFi is due 30 to 45 days after paying off previous loans.

Credible

Best for Comparison Shopping

4.8 _/5

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Why Credible is one of the best

Credible¹ offers a unique marketplace approach to student loan refinancing. You can prequalify with multiple lenders within just two minutes on its site using only a soft credit check, so your credit score remains unaffected.

If you prequalify, it provides personalized rate quotes from multiple lenders. Its tool lets you compare each lender’s rates and terms in one place, connecting you to the lender of your choice for the full application process.

• Compare prequalified rates from multiple lenders
• Requesting your rates on Credible is free

Rates (APR)	4.75% – 14.52%
Loan Amounts	Varies by lender
Repayment Terms	Varies by lender

Eligible requirements

Eligibility requirements vary by lender in Credible’s partner network.

Repayment details

Your repayment terms will depend on the options available from the lender you choose.

ELFI

Best Personalized Support

4.7 _/5

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Why ELFI is one of the best

ELFI is a top student loan refinancing choice for those seeking guidance throughout the process.

Each applicant is assigned a dedicated student loan advisor who walks you through the application process and answers any questions. Customer reviews praise the ease of application and support from ELFI’s student loan advisors.

ELFI also allows for the transfer of parent PLUS loans to a child if the child applies for student loan refinance.

• Refinance your total outstanding balance
• Assigned a student loan advisor

Rates (APR)	5.28% – 8.99%
Loan Amounts	$10,000 – 100% of outstanding balance
Repayment Terms	5, 7, 10, 15, or 20 years

Eligibility requirements

• Must be a U.S. citizen or permanent resident without conditions
• Lending across all 50 states and Puerto Rico
• Bachelor’s degree or higher required
• Minimum credit score: 680 and at least 36 months of credit history
• Minimum income: $35,000
• Cosigner allowed, but no cosigner release

Repayment details

• Term options for student loan refinancing include five, seven, 10, 15, and 20 years
• Term options for parent loan refinancing include five, seven and 10 years.
• Repayment begins once ELFI pays off the original loans, which is typically 30 – 45 days after you sign your loan documents.

Earnest

Best Skip-a-Payment Benefit

4.6 _/5

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Why Earnest is one of the best

Earnest demonstrates flexibility and customization in student loan refinancing. It’s the only private lender to allow one skipped payment per year.

When choosing a loan term between five and 20 years, you can adjust it down to the day to find the perfect monthly payment. Earnest also enables you to sign up for automatic biweekly payments to pay off your loan faster.

Finally, Earnest will match a lower rate if you find one else where and include a $100 bonus.

• Customize your repayment term
• Skip a payment once per year, if needed

Rates (APR)	5.19% to 9.74%
Loan Amounts	$5,000 – $500,000
Repayment Terms	5 – 20 years

Eligibility requirements

• U.S. citizen or holder of a 10-year Permanent Resident Card
• Lends to District of Columbia and 49 states (except Nevada)
• If you don’t have a degree, you must have been out of school for more than six years, have a credit score of 700 or above, and the school you attended cannot be for-profit 
• Minimum credit score: 665 (without cosigners) & 650 (with cosigners)
• Minimum income: Not stated, but steady employment is required

Repayment details

• Term options range from five to 20 years, with the flexibility to choose and customize your plan when you sign your loan documents.
• Option to skip one payment per year without penalty.

Pros and cons of refinancing your student loan with these companies

Refinancing student loans typically makes the most sense when there’s a clear financial benefit to doing so. The companies we’ve profiled offer student loan refinancing options designed to fit different needs and financial situations. 

That said, it’s helpful to consider the advantages and disadvantages of refinancing student loans, as well as how the timing may impact your decision. 

Pros

• Reduce monthly payments

  This creates more breathing room in your budget.

• Lower your interest rate

  A lower rate can lead to long-term savings.

• Change your rate type

  Move from a variable rate to a fixed rate, or vice versa

• Switch lenders

  If you’re unhappy with your current lender, refinancing allows you to work with a new one

Cons

• Loss of federal benefits

  Refinancing federal student loans with a private lender can result in the loss of certain federal protections and benefits, including access to income-driven repayment (IDR) plans and loan forgiveness.

• Credit scores may be a barrier to approval for private student loan refinancing

  You may need a cosigner to get approved if you have limited or poor credit. That could be a stumbling block if you don’t have someone willing to sign off on the loans.

• Lender fees can increase your overall cost of borrowing

  Lenders may charge origination fees, application fees, credit check fees, and other fees, all of which add up.

Should you refinance your student loans?

Asking yourself some questions can help you decide if refinancing student debt makes sense. 

• Which way are interest rates trending? Are rates likely to increase or decrease in the future? 
• How much of the loan principal (and interest) have you already paid back? 
• What is your primary goal for refinancing? For instance, do you want a lower rate, different repayment terms, change of lender, etc.?
• How likely are you to qualify for a refinance loan based on your credit history? If you can’t qualify alone, is someone willing to cosign for you? 
• Are you interested in income-driven repayment plans or loan forgiveness? Do you expect your income or career trajectory to change significantly in the short or long term? 
• If you own a home, would you be able to qualify for a lower rate with a home equity loan or home equity line of credit to pay off student debt? 

To make an informed decision, assess your situation, consider the above factors, and use our student loan refinancing calculator to crunch the numbers and see how much you could save.

Advice from the expert

David Haas

CFP®

Pay careful attention to terms as well as interest rates. What happens if you become disabled or die while you still have the loan? Will the loan be discharged? What happens if you lose your job or have a drop in income? If your loan is cosigned, can you remove the cosigners with a history of good payments? Check complaints against the lenders on the Better Business Bureau and the Consumer Financial Protection Bureau websites.

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Banks to Refinance Student Loans and Credit Unions to Refinance Student Loans

Is the refinancing process different for federal and private student loans?

Federal student loans can be consolidated, meaning your existing loans are combined into a new federal loan or refinanced. When you refinance federal student loans, you get a new private student loan to pay off the balances. Going forward, you make payments to the private lender according to the terms of your loan agreement. 

Here’s what’s different about consolidating vs. refinancing federal student loans:

	Refinancing	Consolidation
Credit check?	✅	✖️
Fixed interest rates?	Sometimes	✅
Preserve federal benefits?	✖️	✅

• Refinancing typically requires a credit check; consolidating federal loans does not. 
• Federal loans have fixed interest rates, while refinance loans may have fixed or variable rates. 
• Consolidating won’t cause you to lose any federal student loan protections, while refinancing with a private lender does.

Private student lenders can, however, offer benefits of their own. While income-driven repayment and loan forgiveness usually aren’t on the list, some private lenders can offer grace periods, flexible repayment terms, and deferment or forbearance options. 

When you refinance private student loans, you replace your existing private loan with a new one. You may refinance with the same private lender you already have or a new one. Private lenders may consider the following when deciding to approve your refinance application:

• Credit history
• Income
• Employment history and career path
• Loan amount and repayment terms

Once approved, your lender will use the loan proceeds to repay your existing loans. You’ll make payments to the new loan moving forward. In that sense, the process is not that different from refinancing federal student loans. 

Reasons to consider refinancing student loans

Refinancing student loans can have some obvious advantages, though not all borrowers will benefit in the same way. Here are some of the most common reasons to consider student loan refinancing. 

• Lower rates. Student loan refinancing may allow you to secure a lower rate on your debt. A lower rate can also reduce your monthly payments and mean less interest paid over the loan term. 
• Loan terms. Refinancing student loans can also allow you to choose a different repayment term. Choosing a longer term can lower your payments, but can add to your total interest paid. A shorter term can increase your payments but help you pay off the debt faster. 
• Cosigner release. Some lenders offer cosigner release, meaning they allow the co-signer to remove their name from the loan and are no longer responsible for it. That’s a good incentive to refinance private student loans if you had someone co-sign them for you. 
• Change lenders. If you’re unsatisfied with your current lender because of poor customer service, high fees, or any other reason, you could refinance your student loans elsewhere. 

Refinancing student loans can also help relieve financial stress if you’re struggling to keep up with payments. Unsurprisingly, 91% of young adults say financial stress impacts their mental and physical health, with student debt a key driver of that stress.

Student loan refinancing could help improve your mental, physical, and financial health if you can negotiate more manageable terms. 

How to choose a student loan refinance lender

Choosing a student loan refinance lender can be multifaceted. The lowest interest rate might be the main attraction, but it’s not the only factor to consider.

Taking the time to compare other essential elements ensures a well-rounded decision. Here’s what to pay attention to:

• Prequalification availability: Look for lenders that allow you to check interest rates through a soft credit pull. Unlike a hard pull, this won’t affect your credit score. 
• Rate discounts: A standard 0.25% interest rate discount for automatic payments might seem trivial, but it can make a significant difference in reducing the interest you pay over the loan’s life. Explore additional discounts, such as the one SoFi offers for having a bank account with the lender.
• Repayment terms: The length of your repayment term affects your monthly payments and overall savings. Shorter terms mean higher monthly payments but more savings, while longer terms lead to lower monthly payments but less savings. Choose a lender that offers a term aligning with your budget.
• Repayment assistance options: If unforeseen circumstances arise, some lenders may allow you to pause payments. This could be due to going back to school, military deployment, medical residency, or financial hardship. But remember, interest will still accrue, increasing the total loan cost.
• Fees: Always check for hidden costs. Most lenders don’t charge fees for refinancing, but it’s wise to ensure that there are no application fees, origination fees, or prepayment penalties.
• Cosigner policies: A creditworthy cosigner may help you qualify for a loan or lower interest rates if your credit score or income is lower. If applying with a cosigner, look for a lender that offers cosigner release, allowing you to remove the cosigner after a certain number of on-time payments.
• Ability to transfer Parent PLUS loans to a child: Some lenders allow refinancing of Parent PLUS Loans into the child’s name. If you’re interested in this option, ensure the lender offers this feature, but be mindful that you stand to lose federal student loan benefits such as income-driven repayment plans and loan forgiveness.

The decision to refinance a student loan is significant. Carefully weighing these elements ensures a choice tailored to your unique financial situation and long-term objectives.

Advice from the expert

David Haas

CFP®

Fixed-rate loans are fixed for the entire term of the loan. With a variable rate, the interest rate will vary with changes in prevailing interest rates over the term of the loan. Some variable-rate loans start out lower than fixed-rate loans, but that isn’t always true. A fixed-rate loan protects you from rate increases in the future. But if rates drop, you’ll need to refinance your loan to get a lower rate. Deciding which one is best has to do with prevailing short-term and long-term interest rates and whether you think rates are going up or down.

Read More

Banks to Refinance Student Loans and Credit Unions to Refinance Student Loans

How to receive the lowest student loan refinance rates

When looking to refinance student loans, the primary objective is often to secure the lowest interest rate. The lower the rate, the more you save. It’s essential to compare lenders’ advertised interest rates, but the following actions can help you qualify for the best rates possible:

• Improve your credit score: Your credit score is paramount in determining your refinance rate. Enhance it by paying bills on time, reducing credit card balances, rectifying errors on your credit report, and avoiding new credit inquiries. A score of 700 or above can lead to better interest rates. 
• Reduce your debt-to-income ratio: This ratio is the proportion of your monthly income that goes toward debt. A lower debt-to-income ratio (usually under 40%) can lead to better loan terms. Focus on paying down debt or boosting your income through side jobs or promotions.
• Take advantage of discounts: Many lenders offer a 0.25% interest rate discount for automatic payments. Some even have additional discounts for banking with them. Though small, these discounts can lead to substantial savings over your loan’s life. Make sure to explore all possible discounts with your lender.
• Choose a shorter repayment term: Shorter repayment terms often come with lower rates. But be sure you can afford the higher monthly payment that comes with a shorter term. A five-year instead of a 10-year term, for instance, may lead to substantial interest savings.
• Add a creditworthy cosigner: If you struggle to qualify for an attractive rate, consider adding a creditworthy cosigner. A cosigner with good credit can help you obtain a more favorable loan term and lower interest rate.

Understanding these strategies can pave the way toward competitive interest rates and desirable loan terms. Keep comparing multiple lenders, and consider professional financial guidance to align with your unique situation.

How does student loan refinancing work?

Student loan refinancing works by replacing an existing loan (or multiple loans) with a new one. The new loan may differ from the previous loan concerning your:

• Interest rate
• Monthly payment
• Repayment term

Your loan agreement should spell out all of the terms, including any fees the lender charges. If the lender charges an origination fee, you’ll pay that upfront. 

Comparing your current loan terms to the refinance terms you’re most likely to qualify for can give you a better idea of what you can expect. For example, let’s assume you have $40,000 in federal loans at 6.53%. You’re on the standard 10-year repayment term and your monthly payment is $455. 

Here are a few examples of what you might pay, based on different loan rates and terms. 

	10-year term	15-year term	20-year term
Interest rate	4.99%	5.24%	5.48%
Interest savings	$3,712.01	($2.299.64)	($8,702.73)

These calculations assume two things:

• Loan refinance rates are fixed, not variable
• You qualify for the best student loan refinance rates

As you can see, refinancing to a new 10-year term at a lower rate would save money on interest. Refinancing into a longer term, however, would cause you to pay more in interest. However, you might consider that option if you’d like to lower your monthly payments. 

How do you know if your student loan refinance will make your monthly payments more manageable?

Refinancing student loans could reduce your monthly payments if you’re getting a lower interest rate or changing your loan term. Here’s how your payments could add up across different terms, assuming the same $40,000 loan balance and interest rates as the previous example. 

	10-year term	15-year term	20-year term
Monthly payment	$424.07	$316.11	$263.76
Payment savings	$30.93	$138.89	$191.24

Opting for the longest term makes the biggest difference in your payments, though it also means paying more interest. Choosing a shorter or the same term that you already had would still shave a little off your monthly payments while netting you the most interest savings. 

Using a student loan calculator to compare interest rates and repayment terms can help you visualize what your payments and total cost of borrowing will work out to. 

How do you refinance your student loan?

Refinancing your student loans is a multifaceted process. Selecting a lender is not a mere first step but a core part of the refinancing journey. It sets the tone for everything that follows. Here’s how the entire refinancing process unfolds:

• Assess your financial situation: Understand your current loans and financial goals to determine whether refinancing is right for you. Be very careful about refinancing federal student loans because you lose access to the various benefits that those loans have.
• Prequalify with various lenders: Using a soft credit pull, prequalify with multiple lenders to explore possible rates without hurting your credit score. This helps you compare different options.
• Select the right lender: Based on your prequalification results and other elements, such as repayment terms and features, choose the lender that best meets your needs.
• Submit a full application: Fill out your chosen lender’s application form and provide necessary documentation, such as proof of income and credit history.
• Receive approval and refinance: Once approved, your selected lender will pay off your loans and create a new one with the agreed-upon terms. This completes the refinancing.
• Set up your repayment plan: Establish your repayment plan with your new lender, considering any discounts or special features that may apply.

By prequalifying and researching the right lender, you tailor your refinancing experience to your unique situation. This can set the stage for saving a significant amount over the life of your loan.

Read More

What is student loan refinancing?

FAQ

Does eligibility for student loan refinancing differ from in-school student loans? 

Yes, eligibility for refinancing can differ from your original student loans. Refinancing with private lenders typically requires a strong credit score, stable income, and a good debt-to-income ratio, making it stricter than federal student loan requirements. 

Even compared to private student loans, refinance lenders may have more specific criteria, reflecting their focus on lending to borrowers who have demonstrated the ability to manage debt.

What does refinancing cost? 

Refinancing itself usually doesn’t have a direct cost. Most lenders don’t charge application, origination, or prepayment fees. However, be mindful of potential changes in terms and interest rates, as they can affect the overall loan cost.

Can you refinance multiple times? 

Yes, you can refinance multiple times if it makes financial sense for you. Always compare current rates and terms with what you can qualify for to ensure refinancing aligns with your financial goals.

Can you transfer Parent PLUS loans? 

Yes, some lenders allow Parent PLUS loans to be transferred to the child through refinancing. It’s essential to verify the lender offers this option and to understand the implications of transferring the loan responsibility and the loss of federal loan protections.

How should you choose between fixed vs. variable rates? 

Fixed rates remain constant over the loan’s life, offering stability. Variable rates can fluctuate with prevailing interest rates, and can sometimes rise or fall dramatically Your choice depends on your risk tolerance and financial situation.

Should I refinance or consolidate? 

Refinancing can lead to a new private loan with different terms. Consolidation, especially with federal loans, combines your loans without changing rates. Your decision depends on your goals, current loan types, and interest rates.

Will my student loans be forgiven if I refinance? 

Refinancing federal loans with a private lender eliminates access to federal forgiveness programs. If you’re pursuing forgiveness, weighing this before refinancing is essential.

When is the best time to refinance? 

The best time to refinance is when it aligns with your financial goals, such as securing a lower interest rate or consolidating loans for easier management. Stable employment is also a factor. Monitoring interest rates and your financial situation will guide this decision.

Can I refinance specialized student loans, such as those for medical or law school?

Yes, refinancing specialized student loans, including those for medical, law, or dental school, is possible with many lenders. Each specialized loan type may come with unique considerations, so it’s important to review the terms carefully. For more detailed information:

• Explore how to refinance medical school loans.
• Learn about refinancing law school loans.
• Understand the process of refinancing dental school loans.

These guides will help you understand the factors that might influence your decision to refinance loans from specialized education programs.

Advice from the expert

David Haas

CFP®

The most common mistake people make when refinancing student loans is to refinance federal student loans just to consolidate the loans to get a single payment. Federal student loans come with superior income-driven repayment plans and possibilities for loan forgiveness that private student loans do not have. A Direct Consolidation Loan can take care of consolidating multiple federal student loans into a single one without losing access to these features. Only refinance federal student loans if you are 100% sure you will not need those features in the future.

How we selected the best student loan refinance lenders

Since 2015, LendEDU has evaluated student loan companies to help readers find the best options for refinancing student loans. Our latest analysis reviewed 696 data points from 24 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. 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.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience and help borrowers receive lower rates or more manageable payments. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, and unique benefits that support borrowers throughout repayment.

Recap of the best student loan refinancing companies