Lower your student loan payments by refinancing at a lower rate. Compare offers from reputable lenders such as Sofi and LendKey.
Student loan refinance rates are an important factor to consider if you are looking to save money or lower your monthly payments on student loans. Refinancing student loans can be a smart financial move for many borrowers, especially those with high interest rates or multiple loans. With the rising costs of education, many graduates find themselves burdened with student loan debt that can take years to pay off. By refinancing, you can potentially lower your monthly payments, reduce the total amount you pay over the life of the loan or even pay off your loans faster.
Rates can vary depending on the lender, your credit score and the type of loan you are refinancing. Finding the right lender is crucial to getting the best deal on your refinanced student loans. Take time to compare rates, loan 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: The Best Refinance Student Loans
- Best for Members Low Interest Rates: SoFi
- Best for Low-Income Refinancing: LendKey
- Best for Budget Flexibility: Earnest
- Best for GPA Qualifications: A.M. Money
- Best for Low APR: Rhode Island Student Loan Authority
- Best for Flexible Loan Terms: College Ave student loan refinancing
The Best Student Loan Refinance Rates
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.
Why We Love It: We love SoFi student loan refinancing because of its competitive interest rates and flexible repayment options. This can help students save money on their monthly payments and overall loan repayment.
2. Best for Low-Income Refinancing: LendKey Student Loan Refinance
Unlike other options on the list, LendKey isn’t the lender. Instead, the company 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. Student loan refinance rates start at 5.49% fixed APR or 5.52% variable APR, with AutoPay, with terms from five to 20 years.
Why We Love It: We love LendKey because it allows to students to submit one application to compare multiple lenders. This not only saves time and hassle, but also allows students to have a better understanding of their options and make an informed decision when choosing a 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 5.09% for fixed-rate loans and 5.89% for variable rates. You’ll need a minimum credit score of 680 or higher.
Why We Love It: We love Earnest because of its skip-a-payment option. By skipping a payment, customers can redirect those funds towards their other financial objectives without incurring additional fees or penalties.
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.
Why We Love It: We love A.M. Money because of its GPA qualification system, no credit score needed. This requirement not only encourages students to prioritize their academic success, but it also ensures that students who are serious about their studies are the ones who have access to these opportunities.
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 student borrowers can’t afford their payments. It also offers a 24-month forbearance period. Qualify for fixed interest rates starting at 6.34%.
Why We Love It: We love RISLA because of its rewards program for nurses. This gives nurses the opportunity to take out a loan with lower interest rates and pay 0% for 48 months of loan repayment.
6. 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.
Why We Love It: We love College Ave because it offers six-month grace period extension options. This gives students the opportunity to focus on finding a job and getting settled before they have to start repaying their loans. This can be a huge relief, especially for recent graduates who may be struggling to find employment in their field.
Compare Student Loan Refinance Rates from Private 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%-9.75% | Fair to excellent |
| Earnest | 5 to 20 years | 5.09%-9.74% | Fair to excellent |
| A.M. Money | 10 years | 7.95%-8.87% | Fair to excellent |
| Rhode Island Student Loan Authority | Up to 10 years | 6.34- 8.29% | Fair to excellent |
| College Ave | Various loan terms | 6.99%-13.99% | Fair to excellent |
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 student 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. Eligibility criteria can include a good credit score, stable income, low to moderate debt-to-income ratio, a degree and apossible 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.
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
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. Consider getting quotes from at least three lenders that don’t perform hard credit checks.
2. Choose a lender and loan term: Consider financial aspects such as interest and fees, as well as other factors like forbearance periods and total loan terms when choosing a lender. Check customer reviews and the lender’s ranking with the Better Business Bureau.
3. Apply for refinancing: You will need to submit a formal application with the lender, which may also ask for information regarding total income, total loan debt and credit profile. Applicants must provide the following documents as part of the requirements for student loan refinancing:
- 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
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.
4. Keep paying off your debt as you wait for your loan: Paying off current debts on time is important while waiting for loan approval as it can lower total debt, improve credit score and increase the chances of approval.
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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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.