Don’t miss out on the opportunity to refinance your student loans at the best rates available this month. Compare offers from reputable lenders such as Sofi and LendKey.
With the rising costs of education, many graduates find themselves burdened with student loan debt that can take years to pay off. Refinancing student loans can be a great option for individuals looking to save money on their monthly payments or lower their interest rates. Finding the right lender is crucial to getting the best deal on your refinanced student loans. Take time to compare rates, fees and repayment options to find the best fit for your financial situation. Below, you’ll find some of the best student loan refinance rates this year, including prepayment or origination fees.
Quick Look: Top Lenders With the Best Student Loan Refinance Rates
Best Student Loan Refinance Companies
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.
1. Best for Members Low Interest Rates: SoFi
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Best For:
Low fixed or variable rates
securely through SoFi Student Refi Loans’s website
Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay
discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20-
year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/06/24 and are subject to change at any time. Your actual rate will be within the
range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other
factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived
by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of
one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate
reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This
benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest
rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required
to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.
If you’re already a SoFi customer, you could get better terms. You’ll need at least an associate’s degree, but SoFi doesn’t limit how much you can refinance. You can refinance all professional degrees in a single loan. SoFi doesn’t offer a co-signer release or the lowest student loan refinance rates. However, SoFi customers could get a 0.125% interest rate discount on other products. Refinancing loan terms range from five to 20 years.
- Interest rate estimate with no hard credit check
- Refinance with only an associate’s degree
- No co-signer release
- Get SoFi member benefits like career coaching
- Can refinance all loans with no stated upper limit
- Charges late fees
- You can only refinance loans of $5,000 and up
2. Best for Low-Income Refinancing: LendKey Student Loan Refinance
Unlike other options on the list, LendKey isn’t the lender. Instead, it pairs you with multiple student loan lenders to offer student loan refinancing. LendKey can help you find the lowest available interest rates by acting as a brokerage with no origination fees. Find student loan refinance rates from 5.49% to 9.45% Fixed APR with AutoPay, with terms from five to 20 years.
- One application to compare multiple lenders
- Repayment from five to 20 years
- No origination fees
- Competitive interest rates
- Loan details and fees depend on the lender
- You’ll need to have completed an associate’s degree or higher
- Forbearance varies by 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. Interest rates start from 5.19% for fixed-rate loans and 5.99% for variable rates. You’ll need a minimum credit score of 680 or higher.
- Custom loan options
- Competitive interest rates
- Minimum credit score of 680
- Skip-a-payment option
- Students with Prodigy loans can qualify
- Must be a U.S. citizen or permanent resident
- Must verify at least two months’ emergency fund
- No variable-rate loans are available in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas
- No co-signers allowed
- Skip-a-payment option lowers forbearance length
4. Best for GPA Qualifications: A.M. Money
Unlike other refinancing options, you can qualify for A.M. Money loans based on your educational background and grade-point average (GPA) rather than your credit score. It also offers income-based repayment plans for up to 36 months. Minimum payments are $50.
However, there are a few negatives: A.M. Money does not allow co-signers, and it charges a 4.5% origination fee. In addition, unpaid loans default sooner than most other lenders, as soon as 14 days. While it’s not currently offering loans, you can enter your info to be notified when loans are available again.
- Qualify for a loan based on your GPA or education
- No credit score needed
- No late fees
- Income-based repayment plans
- Monthly payments as low as $50
- 4.5% origination fee
- Fast loan default times
5. 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 income for 25 years if borrowers can’t afford their payments. It also offers a 24-month forbearance period. Qualify for fixed interest rates from 6.34% to 8.29%.
- Low interest rates
- Income-based repayment plan available
- Nurses pay 0% interest for 48 months after graduation
- Loan terms of five, 10 and 15 years
- You can borrow up to a max amount of between $100,000 and $250,000
- Co-signer release policy available after 24 months
- International students can’t qualify
6. Best for Customized Repayment Plans: Ascent
If you aren’t yet sure whether you’ll be required to have a co-signer, consider Ascent. To qualify without a co-signer, you’ll need a minimum income of $24,000 annually and a minimum credit score of 680.
Ascent offers a range of payment reduction and postponement options, giving you more flexibility when needed. You can choose a graduated repayment plan that starts with a lower monthly payment and increases over time.
You can also pause payments for one to three months if you experience temporary financial hardship. You can pause up to 24 months in total, offering flexibility when you need it. You’ll get some unique perks, like free one-on-one success coaching. If you’re still in school, you can earn a graduation reward of 1% of the loan’s original principal balance.
You don’t have to be a U.S. citizen or permanent resident to apply. However, Ascent’s interest rates are higher than those of other options.
- Qualify without a co-signer
- Get up to 24 months of financial hardship forbearance
- Qualify for a 1% cash-back graduation reward
- International and DACA students can qualify
- Easy to apply
- Higher interest rates than some competitors
- No co-signer releases for international borrowers
7. 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.
- See whether you’ll qualify without a hard credit check
- Flexible repayment options
- Six-month grace period extension options
- A co-signer release is only available once you’re halfway through your repayment term
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 and private 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 were hoping for. Criteria can include:
- A strong credit score
- Stable income
- Low to moderate debt-to-income ratio.
- A degree
- A possible co-signer
Consolidation vs. Refinancing
Consolidation and refinancing are both good options for taking control of student loan debts. Refinancing is an option to combine federal and any private loans into a single new loan with a single monthly payment. In contrast, consolidating 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.
Consolidating is a better option than refinancing to maintain federal loan benefits. Refinancing also can be a good option if you want simplified payments, extended terms or more flexible repayment options.
Is Refinancing Right for You?
When to consider refinancing depends on your financial situation. If you have a higher interest rate, private loans or prefer to consolidate into a single loan payment, refinancing can be a good choice. If you have low-interest federal student loans, refinancing usually isn’t a good choice. Likewise, if you are close to paying off student loans or won’t qualify
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 goals.
How to Refinance Your Student Loans in 4 Steps
You must meet each lender’s credit score and income requirements 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 degree or GPA. Learn how to increase your credit score or even get an 850 credit score.
If you’re ready to refinance, follow the step-by-step process below to refinance student loans.
1. Compare Rates and Requirements from Various Lenders
Rates, fees, terms and application requirements vary from lender to lender. As a starting point, consider getting quotes from at least three lenders that don’t perform hard credit checks.
Look at both fixed-rate and variable-rate options and consider which will work best for your needs. Variable rates can fluctuate with the market, while fixed rates stay the same over time, making it easier to plan for payments.
2. Choose a Lender and Loan Term
In addition to financial considerations like interest and fees, weigh forbearance periods, delayed repayment and total loan terms to find the right fit. Look at other customer reviews online for the lender, and check whether the lender is ranked with the Better Business Bureau.
3. Apply for Refinancing
You will be asked to provide information regarding total income and debt when applying for refinancing. This includes your monthly mortgage, income, total loan debt and credit history. You will also usually need to provide proof of income and employment.
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.
You will need to submit a formal application with the lender, which may also ask for information on your degree or degrees plus a government-issued ID, and Social Security number to check your credit history.
Documents to provide include:
- 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
4. Keep Paying Off Your Debt as You Wait for Your Loan
It’s essential to keep paying off current debts while waiting for approval. The more on-time payments you make, the lower your total debt will be. In addition, this can help boost your credit score and increase your chances of loan approval.
Current Rates from Private Refinancing Lenders
Find some of the best student loan refinance rates from private financing lenders and compare options here:
| Lender | Terms | Interest rate range | Credit score requirements |
| SoFi | 5, 7, 10, 15 or 20 years | 5.24%-9.99% | Good to excellent |
| LendKey | 5, 7, 10, 15 or 20 years | 5.49%-9.45% | Fair to excellent |
| Earnest | 5 to 20 years | 5.44%-9.99% | Fair to excellent |
| A.M. Money | 10 years | 8.34%-8.87% | Fair to excellent |
| Rhode Island Student Loan Authority | Up to 10 years | 6.34- 8.29% | Fair to excellent |
| Ascent | 7, 10, 12 or 15 years. | 4.09%-15.19% | Fair to excellent |
| College Ave | Various loan terms | 6.99%-13.99% | Fair to excellent |
Pros and Cons of Refinancing Student Loans
The pros and cons of refinancing student loans vary by financial situation. Here is an overview.
- Repaying with lower interest rates
- Possibly lowering your overall costs
- A longer repayment period can lower monthly payments
- Make a single payment for all student loans
- You lose all federal benefits
- You may not get better interest or loan terms
- Borrowers with a lower income or a credit score under 650 may have more difficulty to qualify
Should You Refinance Your Student Loans?
Student loan refinancing doesn’t make sense for everyone. If you have low-interest federal loans, it’s usually a good idea to work to pay them off instead of refinancing. Learn which student loans to pay off first to build a personalized strategy.
Refinancing can be a smart financial move if your current loans have a high interest rate or you need a longer repayment term or lower monthly payments. Ready to get started? Find private student loans with bad credit or no credit or find some of the best student loans here.
Frequently Asked Questions
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You can refinance your student loans as often as you’d like, as long as you meet lender requirements.
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Refinancing can temporarily impact your credit score. However, with regular on-time payments, it shouldn’t harm it over time.
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If you refinance student loans with a private lender, you don’t qualify for student loan forgiveness. If you have federal student loans, learn how to apply for student loan forgiveness here.
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Currently, student loan refinance rates are higher than a year ago. However, if interest rates drop, student loan refinance rates may also decrease.
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Requirements for student loan refinancing vary by lender. You can expect to be asked for a government-issued ID, SSN, proof of income, information on current student loans and total debt.
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Yes, you may be able to refinance student loans for a lower rate, but you’ll need to compare lenders’ rates and terms to find the best options.
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Yes, you can refinance your loan if you have bad credit, but you might have limited creditor options and will generally only qualify for higher interest rates.
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Refinancing government student loans can be worth it if you can secure a lower interest rate or better repayment terms.
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