Refinance your student loans
Refinancing your student loans can save you thousands or lower your monthly payment.
Pay Less on Student Loans. Get More Out of Life.
how to refinance student loans
When you decide to refinance your student loans, a private lender will take care of paying off your current loans and provide you with a new loan that has a different interest rate and repayment schedule.
To qualify, you’ll need:
- Aim for a credit score of at least in the high 600s, but ideally higher
- Make sure you have a steady income to support your application
- If you don’t meet the requirements, consider getting a co-signer who qualifies
You have the option to refinance federal loans as well as private loans. Refinancing student loans is free of charge, and it could help lower your monthly payments or enable you to clear your debt sooner.
Top lender interest rates
| Lender | Terms | Fixed APR range | Variable APR range |
|---|---|---|---|
 | 5, 7, 10, 15 or 20 years | 5.24% - 9.99% | 6.24% - 9.99% |
 | 5 to 20 years | 5.19% - 9.74% | 5.99% - 9.74% |
 | 5 to 25 years | 5.34% - 8.73% | 7.35% - 7.35% |
 | 5, 7, 10, 15 or 20 years | 5.49% - 12.18% | 5.52% - 8.7% |
 | 5, 7, 10, 15 or 20 years | 5.48% - 8.94% | 5.28% - 8.99% |
 | Multiple term options | 7.12% - 11.19% | 7.6% - 14.5% |
 | 5, 7, 10, 15 or 20 years | 5.44% - 10.39% | 5.49% - 10.59% |
Refinance student loans: Your questions answered
Should you refinance student loans during the federal student loan forbearance?
If you possess federal student loans, it is advisable to wait until student loan bills resume in October 2023 before considering refinancing. By doing so, you will retain the benefits exclusive to federal student loan borrowers, such as the 12-month student loan on-ramp and the newly introduced income-driven repayment plan called SAVE, which could potentially grant you $0 payments. However, if you still choose to move forward with refinancing, it is crucial to ensure that your personal finances are stable and that you have emergency savings in place before taking on such a risk.
If you have private student loans and meet the requirements for refinancing, it might be a wise decision if you can secure a lower interest rate. Refinancing comes with no additional fees or expenses. For individuals who are eligible for a reduced interest rate, student loan refinancing could assist in achieving one or more of the following objectives:
- Minimize the amount of interest paid throughout the loan duration.
- Accelerate the repayment of educational debt.
- Decrease the monthly installments for student loans.
- Free a co-signer from their obligations.
- Transfer a parent loan to the child’s name through refinancing.
What happens when you refinance student loans?
When you decide to refinance your student loans, a private lender will settle your current loans and provide you with a new loan that has a different interest rate and payment plan. From now on, you will need to make monthly payments to this new lender.
Typically, you or your co-signer should have credit scores in the high 600s or above. Refinance lenders often prefer borrowers with scores in the mid-700s. The higher your credit score (or your co-signer’s), the more likely you are to qualify for a better interest rate. Moreover, it’s important to have sufficient income to comfortably manage your expenses, student loan payments, and other debts.
Is it a good idea to refinance a federal student loan?
If you meet the criteria for a lower interest rate and are willing to forgo the advantages that accompany federal student loans, refinancing can be a beneficial option. However, it’s important to note that by refinancing federal loans, you will no longer have access to income-driven repayment plans, loan forgiveness programs, and other perks offered by federal loans.
Is refinancing student loans better than consolidation?
Your ability to qualify for a lower rate through refinancing depends on your specific situation and financial goals. By meeting the credit and income requirements, you can potentially save money and pay off your debt sooner.
When you consolidate your federal loans through the government, you may not get a reduced interest rate, but you could be eligible for loan forgiveness programs or income-driven repayment plans. Federal student loan consolidation might not lead to cost savings. Instead, it could lengthen your loan repayment timeline, resulting in higher interest payments in the long run.
Which is the best lender to refinance with?
It’s common for borrowers to choose the lowest interest rate available to them. However, if the rates are close, consider looking for lenders that provide additional benefits that are important to you, like the option to refinance parent PLUS loans under the child’s name or flexible repayment plans for unexpected financial difficulties.
Best student loan refinance companies for:
- Paying off student loan debt faster: Get rid of debt more quickly
- Refinancing international student loans: Most lenders require a qualified co-signer
- Refinancing parent PLUS loans: Find a lower rate or refi in your child’s name
- Refinancing with a co-signer: Co-signers can strengthen your application
- Refinancing without a degree: Options for students who didn’t graduate
student loan refinance reviews
Some of the products you see here are from our partners, who may provide compensation. This could impact the products we choose to highlight and how they are presented on the page. Rest assured, our assessments remain unbiased and reflect our own opinions.
Earnest Student Loan Refinance
SoFi Parent PLUS Refinancing
Education Loan Finance Student Loan Refinance
LendKey Student Loan Refinance
Nelnet Bank Student Loan Refinance
Laurel Road Student Loan Refinance
Disclaimers
Subject to credit approval. Terms and conditions apply. https://www.elfi.com/terms/
Earnest
The interest rate and repayment terms for your loan will depend on your income. Fixed rates range from 5.44% APR to 9.99% APR (excluding the 0.25% Auto Pay discount), while variable rates range from 6.24% APR to 9.99% APR (excluding the 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on the publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is determined by the rate published on the 25th day, or the next business day, of the previous calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. If your loan term is 10 years or less, the maximum rate for your loan is 8.95%. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note that variable rate loans are not available in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are reserved for our most credit qualified borrowers and include a 0.25% auto pay discount when payments are made from a checking or savings account. |
SoFi
Subject to credit approval. Terms and conditions apply. https://www.elfi.com/terms/
The fixed rates range from 5.24% APR to 9.99% APR with a 0.25% autopay discount, while variable rates range from 6.24% APR to 9.99% APR with the same autopay discount. Variable interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR, and 15- and 20-year terms are also capped at 13.95% APR. SoFi rate ranges are current as of 02/01/24 and are subject to change at any time. Your actual rate will depend on the term you choose, your creditworthiness, income, presence of a co-signer, and other factors. Remember, the lowest rates are reserved for the most creditworthy borrowers. |
Splash Financial Please review the complete Laurel Road disclaimers. Rates are accurate as of 2/9/24 but are subject to change. Terms and conditions apply. Approval of all products is subject to credit approval. It’s important to note that if you choose to refinance qualifying federal student loans with Laurel Road, you may lose eligibility for certain federal benefits or programs and forfeit future benefits or programs on those loans. Some examples of benefits you may no longer receive include Public Service Loan Forgiveness, Income-driven Repayment plans, forbearance, or loan forgiveness. Make sure to carefully weigh your options when refinancing federal student loans and refer to http://studentaid.gov/ for the most up-to-date information. Laurel Road operates under KeyBank National Association. All products are provided by KeyBank N.A. ©2022 STUDENT LOANS ARE NOT FDIC INSURED OR GUARANTEED. KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. 3 Corporate Drive, 4th fl, Shelton, CT 06484. |
Laurel Road Splash Financial, Inc. (NMLS # 1630038) has the right to make changes or discontinue products and benefits without prior notice. The information you provide is used to determine if our lending partners can offer you a loan, but it does not guarantee that you will receive any loan offers. Terms and conditions apply, and our products may not be available in all states. Please note that these rates are subject to change at any time. If you don’t use the specific link provided on our website, you may see other offers from lending partners with potentially higher rates. Our fixed rate options range from 5.34% to 8.73% with autopay, while our variable rate options range from 7.35% with autopay to 7.35% without autopay. Some rates are based on the LIBOR index, while others are derived by adding a margin to the 30-day average SOFR index. Fixed loans have repayment terms of 5 to 20 years, while variable loans have repayment terms of 5 to 25 years. As an example, a $10,000 loan with an APR of 5.47% for a 12-year term would have a monthly payment of $94.86. Similarly, a $10,000 loan with an APR of 5.90% for a 15-year term would have a monthly payment of $83.85. |
Nelnet Bank The interest rates for fixed loans range from 7.12% APR (with auto debit discount) to 11.19% APR (without auto debit discount). Your interest rate will be determined by your credit qualifications, as well as those of your cosigner if applicable. Once set, the fixed interest rate will remain unchanged throughout the duration of the loan. On the other hand, variable interest rates for Nelnet Bank Refinance Loans range from 7.60% APR (with auto debit discount) to 14.50% APR (without auto debit discount). These variable rates are calculated using different methods based on the SOFR index, such as the One-Month SOFR, the 30-day Average SOFR, or the forward-looking term rate published by the Federal Reserve Bank of New York and/or The Wall Street Journal. If the SOFR index changes, the variable rate may be adjusted on the first day of each month, potentially resulting in higher monthly payments. As of March 1, 2024, the current One-Month SOFR index stands at 5.32%. |
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