Best student loan refinance lenders of April 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 4:02 p.m. UTC April 8, 2024
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Student loan refinancing is only available with private student loans. It combines all or some of your current student loans into one new private student loan. This means you’ll have a single monthly payment — and you might get a lower interest rate than what you’ve been paying, depending on your credit.
The best student loan refinance lenders of 2024 offer the lowest interest rates, multiple repayment options and the fewest fees. In our rankings, we also considered how easy it is to qualify, customer experience, ease of the application process and more when determining the top lenders.
Best student loan refinancing lenders
- SoFi: Best for perks.
- Laurel Road: Best for competitive rates.
- Citizens: Best for non-graduates.
- College Ave: Best for repayment options.
- RISLA: Best for income-based repayment.
Why trust our student loan experts
Our team of experts evaluated hundreds of student loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 10 student loan refinancing lenders reviewed.
- 160 data points analyzed.
- 6-stage fact-checking process.
Laurel Road
SoFi
RISLA
Compare the best student loan refinance lenders
| FIXED APR | VARIABLE APR | LOAN TERMS (YEARS) | AUTOPAY DISCOUNT | CAN REFINANCE WITHOUT DEGREE? | |
|---|---|---|---|---|---|
SoFi
| 5.24% to 9.99%
| 6.24% to 9.99%
| 5, 7, 10, 15, 20
| 0.25%
| No
|
Laurel Road
| 5.19% to 9.50%
| 5.24% to 9.70%
| 5, 7, 10, 15, 20
| 0.25%
| Yes (must be in last semester of eligible degree program)
|
Citizens
| 6.49% to 10.99%
| 7.03% to 12.42%
| 5, 7, 10, 15, 20
| 0.25%
| Yes
|
College Ave
| 6.99% to 13.99%
| 6.99% to 13.99%
| 5 through 15
| 0.25%
| No
|
RISLA
| 6.34% to 8.24%
| N/A
| 5, 10, 15
| 0.25%
| Yes
|
All rates include autopay discounts where noted by the lender and are accurate as of April 8, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best lender to refinance your student loans. Out of all the lenders considered, the five that made our list excelled in areas across the following categories (with weightings): loan details (10%), loan cost (40%), eligibility and accessibility (30%), customer service experience (15%) and ease of application (5%).
Within each major category, we considered several characteristics, including available loan repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers and if they offer co-signer release. Finally, we evaluated each provider’s customer support options, borrower perks and features that simplify the borrowing process—like mobile apps.
Why some lenders didn’t make the cut
Of the student loan refinancing lenders that we reviewed, six made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to having higher interest rates, shorter maximum repayment terms and fewer customer service options. Some also don’t offer co-signer release.
Student loans: When does repayment start?
What is student loan refinancing?
Student loan refinancing is the process of taking out a new private student loan to pay off your existing loans. This new loan will come with a different rate and terms. Depending on your credit, you might qualify for a lower interest rate, which could save you money on interest charges.
You can finance both federal and private student loans. However, keep in mind that refinancing federal loans means you’ll lose federal protections. For example, you won’t have access to income-driven repayment (IDR) plans and student loan forgiveness programs, and you’ll no longer be eligible for CARES Act benefits that have put federal student loan payments on hold until October 2023.
How to refinance your student loans
If you’re ready to refinance your student loans, follow these steps:
- Check your credit. When you apply for refinancing, the lender will review your credit to make an approval decision — so it’s a good idea to check your credit beforehand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, report them to the appropriate credit bureau to potentially boost your credit score.
- Compare lenders. Make sure to compare your options with as many lenders as possible. This will help you find a loan that suits your needs. As you shop around, consider what each lender offers based on interest rates, loan amounts, repayment terms and eligibility requirements. Many lenders let you prequalify with only a soft credit check that won’t impact your credit score.
- Choose a loan option and apply. After you’ve done your research and narrowed down your choices, pick the lender you like best. You’ll then need to fill out a full application and provide any required documentation, such as pay stubs, tax returns and information about the loans you’re refinancing.
- Manage your payments. If you’re approved, your lender will have you sign for the loan. As you wait for the refinance to be processed, continue making payments on all of your current loans to avoid falling behind. Afterward, you’ll start making payments to your new lender. You could also consider signing up for autopay to prevent missing any future payments and subsequent damage to your credit. Depending on the lender, this could qualify you for a rate discount — often 0.25%.
Pros and cons of refinancing your student loans
Pros
- Might get a lower interest rate. If you have good credit, you might qualify for a lower interest rate through refinancing — meaning you’ll pay less in interest over the life of your loan. This could also help you pay off your loan faster. In general, the higher your credit score, the better your rate will be. It’s usually best to choose the shortest term you can afford to avoid paying more than necessary.
- Can reduce monthly payments. You can opt to extend your repayment term through refinancing, which will reduce your monthly payments. However, keep in mind that choosing a longer term means you’ll pay more in interest over the life of the loan.
- Simplify repayment. Refinancing lets you consolidate your loans into a single new loan with only one payment to manage.
Cons
- Will lose protections on federal loans. Refinancing federal loans will replace them with a new private loan. This means you’ll lose access to federal protections and benefits. For example, private refinanced loans aren’t eligible for federal forgiveness or cancellation programs.
- Can be hard to qualify without good credit. You’ll typically need good credit (or a creditworthy co-signer) to qualify for refinancing. A good credit score is usually considered to be 670 or higher. If you have bad or no credit, it could be hard to get approved. If you have bad credit or don’t have a co-signer, you could have a hard time getting approved.
- Fewer repayment options. Private refinanced loans don’t offer the variety of repayment options that federal loans do. For example, you won’t be able to sign up for a federal IDR plan. While some private lenders provide deferment or forbearance options, these are offered at the discretion of the individual lender. It’s also very difficult to have student loans discharged through bankruptcy if you’re struggling to repay.
When you should consider refinancing
While refinancing can be an ideal option for some borrowers, it isn’t right for everyone. Here are some scenarios where it could be a good idea to consider:
- You have good or excellent credit (or a creditworthy cosigner) and can qualify for a lower interest rate than what you’re currently paying.
- You want to reduce your monthly payments by extending your repayment term — and don’t mind paying more in interest over time.
- You have a variable interest rate and want to switch to a fixed rate (or vice versa).
- You have multiple loans to manage and want to consolidate them into one new loan.
On the other hand, refinancing might not be the best fit if:
- You already have a good interest rate and won’t save money on your total repayment costs.
- You have poor credit and can’t qualify for a lower interest rate.
- You have federal student loans and don’t want to lose access to their benefits and protections.
- You are on the path to federal student loan forgiveness or could qualify for it in the future.
Comparing the best student loan refinance lenders
If you’ve decided to refinance, it’s important to shop around and compare as many lenders as possible. This way, you can find a good deal on a loan that works for you.
Here are some important factors to keep in mind as you weigh your options:
- APR: The annual percentage rate (APR) of a loan includes both the interest rate as well as any applicable fees. By comparing APRs between lenders, you can get an idea of what your future costs will look like. Remember that you’ll generally need good or excellent credit to qualify for the lowest rates.
- Repayment terms: Terms for refinanced loans typically range from five to 25 years, depending on the lender. Choosing a shorter term can help you save money on interest. Plus, many lenders offer better rates for shorter terms. However, you’ll also have higher monthly payments. On the other hand, you could extend your repayment term to reduce your monthly payments — though this means you’ll pay more in interest over time.
- Fees: Depending on the lender, your loan could come with fees — such as origination or late fees — that you’ll pay on top of your principal balance and interest. Finding a lender that charges few or no fees can help to reduce your overall borrowing costs.
- Eligibility requirements: While qualification criteria can vary by lender, you’ll generally need good credit, verifiable income and a low debt-to-income ratio to get approved for refinancing. If you’re struggling to get approved on your own, you could consider applying with a creditworthy co-signer to increase your chances. Having a co-signer might also qualify you for a better rate than you’d get on your own.
Frequently asked questions (FAQs)
The best time to refinance is when you can lower your interest rate and pay off your student loans sooner to avoid paying more in interest than you need to. There are also other benefits that could make refinancing worth it—but refinancing isn’t right for everyone. For example, refinancing federal student loans might not be a good idea.
“If you have federal student loans, you should consider the pros and cons of refinancing your loans with a private lender even if you get a lower interest rate,” says Saki Kurose, associate financial advisor at Omega Wealth Management. “Federal student loans have special benefits, such as access to loan forgiveness programs, income-driven repayment plans and forbearance/deferment options if you cannot make your loan payments.”
If you refinance your federal loans into a private student loan, you’ll lose out on these benefits.
Every lender has different credit score requirements and not all of them require good or excellent credit. Many evaluate your entire credit profile and don’t necessarily have a credit score minimum for refinancing student loans. However, if you don’t have good to excellent credit, you’ll likely get a higher interest rate or might need a co-signer to get approved.
Getting approved for a student loan refinance generally requires decent credit and a solid credit history. You’ll also need steady employment with proven income to show you can pay back your student loans.
Remember to compare loan options from multiple lenders and consider not only interest rates but also eligibility requirements. This can help you find a quality lender as well as a good rate.
There’s no limit to how many times you refinance your student loans. This means you can take advantage of lower rates or other perks in the future. However, keep in mind that continuously refinancing your loans could lead to paying more in interest over time, depending on the rate you qualify for and the repayment term you choose.
Before refinancing again, make sure that the savings and benefits will outweigh the costs.
Yes, you can refinance your student loans with another lender. This can be a helpful option if you don’t like your current lender or want to take advantage of better rates and terms offered by a different one.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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