How to Refinance Student Loans Without a Degree

Refinancing your student loans can often help you tap into a lower interest rate or monthly payment. Most lenders require borrowers to have a degree for refinancing. 

But certain exceptions exist for borrowers who haven’t yet graduated or don’t plan to finish their degree. 

If you are considering refinancing your student loans, this guide can help you explore your options. 

In this guide:

• Can I refinance my student loans without a degree?
• Lenders that will refinance student loans without a degree
• When it makes sense to refinance student loans without a degree
• Steps to refinance student loans with no college degree
• Alternatives to refinancing student loans without a degree

Can I refinance my student loans without a degree?

Refinancing your student loans involves replacing your current student loan with a new loan that offers different terms, such as a new lower interest rate or more extended repayment period. In contrast, consolidating your student loans involves rolling several loans into a single loan balance. 

When you consolidate federal student loans into a Direct Consolidation Loan, the resulting loan’s interest rate will reflect the average of all the loans you consolidate. Borrowers with federal student loans who refinance through a private lender might find lower interest rates. If you aren’t sure what loan type you have, look at your latest student loan statement, where it should be stated.

Note: Refinancing federal loans means giving up all borrower protections that come with them. 

If you decide refinancing is the right option, some lenders offer refinancing options to students without a degree. If you’re more interested in consolidation, you must leave school or drop below half-time enrollment to be eligible to consolidate your federal loans.

>> Read More: When you can refinance your student loans

Lenders that will refinance student loans without a degree

Here’s a look at lenders willing to work with borrowers who didn’t graduate. 

Citizens Bank 

Citizens Bank works with student loan borrowers who haven’t graduated. You must make 12 qualifying payments to qualify for a refinance after leaving school. 

You need at least $10,000 in debt to refinance. The refinance term lengths range from five to 20 years. Read our full Citizens Bank Review to learn more. 

PNC Bank

PNC Bank will refinance between $10,000 and $25,000 in student loan debt for eligible borrowers. One eligibility requirement is making at least 24 consecutive payments to at least one student loan. 

Find out more in our PNC Review. 

Discover 

Discover offers student loan borrowers who didn’t graduate one of the most flexible financing opportunities. You can refinance up to $150,000 in student loans depending on your financial situation. 

The rate discount opportunities are lower, at 0.25% for automatic payments versus 0.50%. But you won’t have to make a specific number of payments to your current student loans before applying. 

Read more about Discover in our full review. 

When it makes sense to refinance student loans without a degree

Refinancing your student loans can lock in a lower interest rate or lower monthly payment on your debt. You’ll also have the chance to consolidate several loans into a single monthly payment. 

Refinancing is worth serious consideration if you’re looking for a way to save on interest or create more room in your monthly budget. 

However, refinancing federal student loans requires giving up the borrower protections available through the federal government, including access to income-driven repayment plans and forgiveness opportunities. 

Take the time to weigh the impacts on your current budget and future financial plans before refinancing your student loans. 

Steps to refinance student loans with no college degree

The refinancing process looks similar whether you’ve obtained your college degree. 

1. Determine your goals: Refinancing can serve many purposes. Start by determining what you want to achieve through your refinance, such as saving money on interest or lowering your monthly payment. 
2. Shop around: It’s critical to compare quotes from multiple lenders, so you don’t overpay for your refinance. Without a college degree, you’ll have to whittle the field down to lenders willing to work with you. 
3. Apply: After choosing the right loan, it’s time to complete your application. You should know whether you’re approved within a few days. 

Alternatives to refinancing student loans without a degree

Refinancing your student loans isn’t the only option for those without a degree. Other options include the following:

• Federal loan consolidation: Borrowers with federal student loans can combine their loans into a single loan through a Direct Consolidation Loan. You won’t save on interest payments, but you’ll only have to keep track of one monthly payment. 
• Income-drive repayment (IDR) plans: IDR plans may help you lower your monthly payment to a more manageable level for your budget. You may have access to several IDR plans. Explore this opportunity with our guide to income-driven repayment plans. 
• Debt snowball method: Paying off your student loans with the snowball method is an option if you want these loans out of your life for good. You’ll start by paying off the smallest loan balance if you have several loans. The snowball begins with any extra money you can find in your budget. After you pay it off, roll that minimum monthly payment into the snowball to tackle the next-largest debt until you’re debt-free.