It can be super confusing to know what the best option is to refinance or consolidate your student loan debt. There are so many different lenders and banks - along with just as many programs - that it can be overwhelming.
Before we begin, it's important to understand the key differences:
- Student Loan Refinancing - Getting a new private student loan to replace your existing loan and/or loans.
- Student Loan Consolidation - Combining multiple Federal loans into one loan.
With all the student loan refinancing companies we're going to discuss, you can refinance and/or consolidate. You can also do some of your loans or all your loans.
It can be confusing to figure out what you should do, but in general, you shouldn't refinance federal student loans unless you can afford paying your loans on the standard 10 year plan. But, if you can afford, refinancing can make a lot of sense financially.
Promo: If you already know that refinancing makes sense, and you're looking for the best place to compare options in 2 minutes with no credit check, we recommend Credible. As a bonus, College Investor readers get a up to a $1,000 gift card bonus!
If you just want the quick and easy comparison - go to Credible here >>
Covid-19 Deferment: If you're considering refinancing your federal student loans, the current pause on student loan payments and 0% interest will continue through sometime in mid-2023. You may want to start the refinancing process now to take advantage of historically low interest rates before your loans un-pause, but you might want to wait until a little closer to the expiration. Learn more about Covid-19 and your student loans here.
Student Loan Refinancing Rates: The refinancing rates below are updated daily. The lowest rates are usually for shorter loan-terms, variable rates, those with high credit scores, and low debt-to-income ratios.
Note: The refinancing offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear - but we currently keep lenders alphabetical). The College Investor does not include all student loan companies or all student loan offers available in the marketplace.
Excellent Places To Refinance Student Loans
Lender Name | APR | Get Started |
|---|---|---|
 | Variable Rate 4.53% - 13.60% Fixed Rate 4.40% - 11.99% | Get up to a $1,000 gift card bonus via Credible! |
 | Variable Rate 5.40% - 11.98% Fixed Rate 5.40% - 11.88% | Via Credible Get up to a $1,000 gift card bonus via Credible! |
 | Variable Rate 5.99% - 11.99% Fixed Rate 5.99% - 11.99% | Via Credible Get up to a $1,000 gift card bonus via Credible! |
 | Variable Rate 4.99% - 8.94% Fixed Rate 4.96% - 8.99% | |
 | Variable Rate 4.53% - 8.24% Fixed Rate 5.08% - 8.04% | Get up to a $1,100 bonus! |
 | Variable Rate N/A Fixed Rate 6.93% - 11.58% | Via Credible Get up to a $1,000 gift card bonus via Credible! |
 | Variable Rate 4.74% - 8.60% Fixed Rate 4.49% - 8.70% | Get up to a $200 bonus!⁺ |
 | Variable Rate 4.76% - 7.86% Fixed Rate 4.49% - 10.68% | Get up to a $750 bonus! |
 | Variable Rate N/A Fixed Rate 7.74% - 9.93% | Via Credible Get up to a $1,000 gift card bonus via Credible! |
 | Variable Rate 5.38% - 8.99% Fixed Rate 4.99% - 8.99% | |
 | Variable Rate 4.74% - 8.99% Fixed Rate 4.49% - 8.99% | Get up to a $500 bonus! |
Lender Name | APR |
|---|---|
Get up to a $1,000 gift card bonus! | Variable Rate 4.53% - 13.60% Fixed Rate 4.40% - 11.99% |
Get up to a $1,000 gift card bonus via Credible! | Variable Rate 5.40% - 11.98% Fixed Rate 5.40% - 11.88% |
Get up to a $1,000 gift card bonus via Credible! | Variable Rate 5.99% - 11.99% Fixed Rate 5.99% - 11.99% |
| Variable Rate 4.99% - 8.94% Fixed Rate 4.96% - 8.99% |
Get up to a $1,100 bonus! | Variable Rate 4.53% - 8.24% Fixed Rate 5.08% - 8.04% |
Get up to a $1,000 gift card bonus via Credible! | Variable Rate N/A Fixed Rate 6.93% - 11.58% |
Get up to a $200 bonus!⁺ | Variable Rate 4.74% - 8.60% Fixed Rate 4.49% - 8.70% |
Get up to a $750 bonus! | Variable Rate 4.76% - 7.86% Fixed Rate 4.49% - 10.68% |
Get up to a $1,000 gift card bonus via Credible! | Variable Rate N/A Fixed Rate 7.74% - 9.93% |
| Variable Rate 5.38% - 8.99% Fixed Rate 4.99% - 8.99% |
Get up to a $500 bonus! | Variable Rate 4.74% - 8.99% Fixed Rate 4.49% - 8.99% |
1. Citizens Bank
Citizens Bank is one of the few banks on this list. We like them because they offer a lot of great loan options, backed by the stability of a bank.
Here are a few of the highlights:
- 5-, 7-, 10-, 15- and 20- year repayment term options
- Fixed and variable rate loans options
- No application, origination, or disbursement fees
- Interest rate discounts available through loyalty programs
Furthermore, Citizens Bank has a release program where a co-signer may be removed from loan responsibility after making 36 consecutive, on-time principal and interest payments.
Lastly, there is a $10,000 minimum loan amount so this might not work for a borrower with a low loan balance.
Citizens Bank Details | |
|---|---|
Product Name | Citizens Bank Student Loan Refinancing |
Min Loan Amount | $10,000 |
Max Loan Amount | $500,000 |
Fixed Rate APR | 5.40% - 11.88% APR |
Variable Rate APR | 5.40% - 11.98% APR |
Loan Terms | 5, 7, 10, 15, 20 Year |
Promotions | $1,000 Gift Card via Credible |
Get up to a $1,000 gift card bonus when you refinance at Citizens through Credible.
2. College Ave
College Ave offers both private student loans and student loan refinancing. Their private student loans allow some interesting repayment options, such as an interest-only payment, a deferred payment, and a fixed rate payment. And existing borrowers can refinance a loan as low as $5,000 or as much as $300,000 depending on their degree type.
College Ave Details | |
|---|---|
Product Name | College Ave Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | $150,000 or $300,000 (depending on degree) |
Fixed Rate APR | 5.99% - 11.99% APR |
Variable Rate APR | 5.99% - 11.99% APR |
Loan Terms | 5 to 20 Years |
Promotions | $1,000 Gift Card via Credible |
Get up to a $1,000 gift card bonus when you refinance at College Ave through Credible.
3. Earnest
Earnest is on this list because it's one of the most flexible student loan refinancing companies - they offer the ability to pick any monthly payment and term between 5 to 20 years – saving you more than standard rates and terms.
They also give you the ability to change your loan – you can refinance your loan for free, change payment dates, even skip a payment once a year and make it up later.
Earnest has no set income requirements for borrowers. They are also fee-free, and offer unemployment protection to pause your monthly payments if you lose your job. Also, Earnest is one of the few lenders that will allow you to refinance even if you didn't finish your bachelor's or associate's degree (assuming you meet their other lending criteria).
Earnest Details | |
|---|---|
Product Name | Earnest Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | $500,000 |
Fixed Rate APR | 4.96% - 8.99% APR |
Variable Rate APR | 4.99% - 8.94% APR |
Loan Terms | 5, 7, 10, 15, 20 Year |
Promotions | None |
4. ELFI
Whether you’re trying to refinance existing student loans at low interest rates, or you're a parent looking to refinance a Parent PLUS Loan into your child's name, ELFI (or Education Loan Finance) is one of the best lenders out there.
The ELFI loan minimum is $10,000 for refinancers, with the maximum being your outstanding loan balance. This can be a huge win for borrowers with high student loan debt, especially doctors.
ELFI doesn’t have specific credit minimums posted, but they do require borrowers to be creditworthy (or have a creditworthy cosigner). One of the few downsides of ELFI, however, is that it's one of the few lenders on this list that does not offer a cosigner release program.
ELFI is offering an awesome bonus to our readers:
- A $1,100 bonus when you refinance at least $100,000 in student loans!
- A $550 bonus when you refinance less than $100,000 but at least $50,000 in student loans!
ELFI Details | |
|---|---|
Product Name | ELFI Student Loan Refinancing |
Min Loan Amount | $10,000 |
Max Loan Amount | No Maximum |
Fixed Rate APR | 5.08% - 8.04% APR |
Variable Rate APR | 4.53% - 8.24% APR |
Loan Terms | 5, 7, 10, 15, and 20 Years |
Promotions | Up to $1,100 Bonus |
Get up to a $1,100 bonus when you refinance with ELFI.
5. ISL Education Lending
ISL Education Lending is a non-profit lender (also known as Iowa Student Loan). ISL offers simple fixed interest rate student loan refinancing.
ISL Education Lending is one of the few lenders that will allow you to refinance your student loans while you're still in school. They also offer a graduated student loan repayment plan on your loans.
Of course, they also don't charge any origination fees or have prepayment penalties (if you're looking to pay off your loans early).
ISL Education Lending is on the Credible marketplace, which means that you can get up to a $1,000 gift card bonus if your loan is approved and funded.
Get up to a $1,000 gift card bonus when you refinance at College Ave through Credible.
6. Laurel Road
Laurel Road is perhaps best suited for medical and dental graduates, but they have student loan refinancing options for any borrower.
One of the things we really like about them is that they're one of the few lenders that offer special payment options for medical residents. Currently, you can pay as little $100 per month towards your loans that you've refinance with Laurel Road while you're in residency.
Plus, if you refinance through Laurel Road, apply through this link for a $200 bonus!
Laurel Road Details | |
|---|---|
Product Name | Laurel Road Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | Total Loan Amount |
Fixed Rate APR | 4.49% - 8.70% APR |
Variable Rate APR | 4.74% - 8.60% APR |
Loan Terms | 5, 7, 10, 15, and 20 Years |
Promotions | $200 Bonus |
Get up to a $200 bonus when you refinance through Laurel Road.⁺
7. LendKey
LendKey is a student loan refinancing lender that pools money from community banks and credit unions to offer well-priced student loans to borrowers.
LendKey offers loans between $5,000 and $300,000, depending on the degree earned by the loan holder. For example, the lowest amount is for undergraduate degrees, which caps at $125,000.
LendKey bases its rates upon your credit and discounts are given for auto-pay. They also have no origination or prepayment fees. One thing to note: LendKey does not allow refinancing for borrowers who didn't graduate.
If you're considering LendKey, you can get a $300 bonus for refinancing loans under $150,000, and a $750 bonus if you refinance loans over $150,000! You must apply through our site to get your bonus >>
LendKey Details | |
|---|---|
Product Name | LendKey Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | $300,000 |
Fixed Rate APR | 4.49% - 10.68% APR |
Variable Rate APR | 4.76% - 7.86% APR |
Loan Terms | 5, 7, 10, 15, 20 Year |
Promotions | Up to $750 Bonus |
Get up to a $750 bonus when you refinance through LendKey.
8. PenFed
PenFed is one of the newest additions to this list of the best places to consolidate student loans. The reason? The have some of the lowest student loan consolidation rates we've seen, and they keep getting lower and lower.
PenFed is also on the Credible platform, so you can easily see how PenFed compares to the other top lenders out there.
PenFed offers loans up to $500,000, but you typically have to show strong earnings or have a cosigner that meets their requirements.
PenFed is also one of the only lenders we've seen that allows for spousal student loan consolidation - which is a unique option some may want to consider.
PenFed Details | |
|---|---|
Product Name | LendKey Student Loan Refinancing |
Min Loan Amount | $7,500 |
Max Loan Amount | $500,000 |
Fixed Rate APR | 7.74% - 9.93% APR |
Variable Rate APR | N/A |
Loan Terms | 5, 8, 12, and 15 Years |
Promotions | Up To $1,000 Gift Card via Credible |
Get up to a $1,000 gift card bonus when you refinance at College Ave through Credible.
9. SoFi
SoFi is another of the original student loan refinancing lenders - and probably the most well known. They offer a wide variety of fixed rate and variable rate loans, with 5, 7, 10, 15, 20 year repayment terms. SoFi even offers mortgages.
SoFi loans have no origination fees or prepayment penalties. SoFi also offers unemployment protection for borrowers and even has a career support program.
To get the best rates, you have to have excellent credit or you'll have to have a cosigner for your loan. SoFi does have a cosigner release program.
SoFi Details | |
|---|---|
Product Name | SoFi Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | No Max Loan Amount |
Fixed Rate APR | 4.99% - 8.99% APR |
Variable Rate APR | 5.38% - 8.99% APR |
Loan Terms | 5, 7, 10, 15, 20 Year |
Promotions | None |
10. Splash Financial
Splash Financial began in 2017 as a direct lender. But now it's a marketplace that connects borrowers to its third-party lending partners (right now their partners include Nelnet Bank, Laurel Road, and PenFed) rather than servicing its own loans.
Splash Financial offers student loans with no original fees and unique repayment options. For example, they're one of the few lenders that allow spouses to refinance together.
They offer loans between $5,000 and no maximum. They also have some of the lowest rates for qualified borrowers. Repayment term options and available borrower protections will vary depending on the specific lender that you choose from the Splash Financial marketplace.
The great thing about Splash Financial is that they offer one of the best bonuses currently available! You can get a $500 bonus if you refinance at least $50,000.
Splash Financial Details | |
|---|---|
Product Name | Splash Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | No Max Loan Amount |
Fixed Rate APR | 4.49% - 8.99% APR |
Variable Rate APR | 4.74% - 8.99% APR |
Loan Terms | 5, 7, 8, 10, 12, 15, 20 Year |
Promotions | Up to $500 Bonus |
Get up to a $500 bonus when you refinance through Splash.
Best Student Loan Refinancing Rates
Student loan refinancing rates vary quite a bit. You'll likely see a rate quoted, but that doesn't necessarily mean you'll qualify for the top rate.
To get the best rate, you typically have to have a credit score over 800, a great debt-to-income ratio, and looking to refinance a loan for a period of time of 3 years. Some other requirements may include signing up for autopay (direct debit), and taking out a variable rate loans.
Right now, the best student loan refinancing rates are 4.53% - 13.60% APR.
The Requirements To Refinance Student Loans
The requirements to refinance student loans are a bit different than when you took out your loans. For federal loans, you simply had to fill out the FAFSA. With some graduate school loans (such as medical school loans), you might have had to have a credit check beyond the FAFSA.
However, with private student loan refinancing, the requirements are more like getting a car loan or mortgage.
Lenders will typically look at:
If you don't meet all of these requirements, you might need to get a cosigner for your loan. Read this full guide on how to get a student loan with no cosigner.
Credible does offer loans with no cosigner for qualifying candidates.
What Credit Score Do I Need To Refinance Student Loans?
There is no specific credit score that is required to refinance student loans - but most lenders want to see 600 or higher. However, the better your credit score, the better rate and terms you can qualify for.
To get the lowest advertised rates, most lenders will want to see a credit score about 750 or even 775.
Things To Consider When Refinancing
When you're looking at the best banks and places to refinance student loans, there are quite a few considerations. Every bank or student loan lender has it's unique perk or angle, and you have to take that into consideration when weighing your options.
However, in general, the big things to consider when refinancing your student loans include:
Is It A Good Idea To Refinance A Student Loan?
Refinancing your student loans can lead to lower interest rates, ultimately saving you money over the life of the loan. However, according to the U.S. Department of Education's Federal Student Aid website, refinancing may lose you access to benefits you get with federal loans.
While there is no "right" or "wrong" loan type when it comes to your individual situation, we believe that most borrowers would benefit from a student loan refinance loan that is only 5-7 years. Borrowers should look for loans that have no origination fees, and if a cosigner is required, there should be an easy cosigner release process.
However, every person has different needs and a different situation. Think about your loan needs accordingly.
When Is The Best Time To Refinance Student Loans?
The best time to refinance your student loans is before you “need” to. What do I mean by this?
A lot of people wait until they can’t afford their debt, and then look for options to refinance.
If you’re considering student loan refinancing, your credit score plays a big role in whether you’ll qualify or not. If you start missing loan payments, your credit score will drop and you might not qualify (or you might need a cosigner).
So, there are two times when I think you should look at student loan refinancing:
- Immediately after graduation
- If the interest rate drops by 1% or more
Immediately after graduation is the best time to simply get everything in order. If you have multiple loans, you can refinance them into one. You can also refinance into a payment plan that might be more affordable.
Second, you should revisit your loans once a year. If the interest rate has dropped by more than 1%, it can save you a lot of money to refinance your loans. Just make sure that you’re not adding too much to the length of the loan when you do this.
How Student Loan Refinancing Is Different From Student Loan Consolidation
Student loan refinancing is different from student loan consolidation, but many people use the terms interchangeably and it can be confusing.
Student loan consolidation is a special program offered by the Department of Education to simply combine all your Federal student loans into a single Federal student loan. Student loan consolidation only applies to Federal student loans, and it’s a free program. Learn more about student loan consolidation here.
Student loan refinancing is the process of taking out a private loan to replace your other student loans. This term gets confused for consolidation because many people consolidate multiple private loans into one new loan. You can refinance both private and Federal loans, so that adds another level of confusion to the term.
If you have Federal loans, you typically want to consolidate. If you have private loans, you typically want to refinance.
Can You Refinance Private Loans?
So you can refinance other private loans you already have? Absolutely. Student loan refinancing originated by simply refinancing other private student loans. Think of it like refinancing your mortgage on your house.
If interest rates drop enough, you could save a lot of money by refinancing your loans.
Also, remember what we said earlier – if you can’t afford your private loan payment, you can’t simply call and get it changed. You need a new loan. That’s where student loan refinancing comes into play.
However, before you think you can refinance all the time, you need to make sure your loans allow it. Check to see if your private student loans have any type of prepayment penalties. Some loans don’t allow you to refinance for at least a year, and charge penalties if you attempt to do so.
Can You Refinance Federal Loans?
If you have Federal loans, you might be looking at your interest rate of 6.8% and wondering if student loan refinancing makes sense for you.
Yes, you can refinance your Federal student loans, but you should only do it in one specific scenario. We put together a step by step process that shows you when exactly you should consider refinancing your Federal student loans.
As always, remember that a private loan will now replace your Federal loans, so really make sure you read our guide.
What About Parent PLUS Loans?
Parent PLUS Loans are some of the worst student loans you can get. These loans are in the parent's name, but were taken out on behalf of the student.
Refinancing a parent PLUS loan is one of the best ways that you can save money. Read our full guide to Parent PLUS Loans here.
What About Spousal Consolidation Loans?
Spousal consolidation loans take the cake as the worst type of student loan. This loan is even harder to deal with than PLUS Loans, and so bad, the government even stopped allowing them. If you're stuck with a spousal consolidation loan, you need to find a lender that will work with you.
The only national lender we've seen that handles these is Splash Financial.
Can You Refinance Multiple Loans Together?
Yes, you can refinance multiple individual loans into one new loan. As we mentioned above, this is where some confusion arises because people mistake consolidating your loans with the process of Student Loan Consolidation.
If you have multiple private student loans, it can simplify things to have a single loan to make payments on. If you have Federal and private student loans, I don’t recommend combining them unless you’ve read our Federal student loan refinancing guide and are positive you’re never going to need the benefits of your Federal loans.
Can You Refinance More Than Once?
What happens if you refinance today, and next year interest rates drop again? Well, you can typically refinance again and again, as long as your student loan doesn’t have any type of prepayment penalty or prohibition.
Just remember too that your loan term will continue to expand out if you keep refinancing into new loans. Some lenders like Earnest offer very flexible repayment terms, but most stick to the standards of 10, 15, or 20 years.
More Student Loan Refinancing FAQs
What is student loan refinancing?
Student loan refinancing is the process of taking out a new private student loan to replace your existing Federal or private student loans.
How can I refinance my student loans?
You can refinance your loans by applying and being approved at a bank or student loan refinancing company. You typically have to have a good credit score, good debt to income ratio, and have graduated college.
When does it make sense to refinance?
It makes sense to refinance your student loans if you expect to pay them off in less than 7 years, don’t utilize any loan forgiveness or income-driven repayment plan, and can save money on interest or by shortening your loan term.
How can I lower my student loan interest rate?
By refinancing your student loan, you can potentially lower your interest rate if you qualify. The lowest interest rates are typically on variable rate loans, with shorter durations.
What credit score do you need to refinance your student loans?
While every lender varies, you’ll likely need a 660 or higher to even potentially qualify. However, to qualify for the best rates and terms, you’ll likely need a 780 or higher.
What’s the difference between student loan consolidation and refinancing?
Student loan consolidation is a free government service that allows you to combine all of your Federal loans into a single new loan. Student loan consolidation is only for Federal loans, and does’t change anything on the underlying loans – your new loan will have the same weighted interest rate and payment.
Student loan refinancing will be a new private loan that replaces your Federal and/or private loans. It can be a lower interest rate or different repayment term.
What are the risks of student loan refinancing?
The biggest risk of refinancing (especially Federal loans) is that you lose access to any programs you may have been eligible for on your original loans. This could mean losing student loan forgiveness, income-driven repayment plans, and deferment and hardship options.
Final Thoughts
Student loan refinancing isn't for everyone. However, if you're able to afford your loans on the standard 10-year repayment plan, and don't plan to take advantage of any student loan forgiveness program, then you should strongly consider student loan refinancing.
These are the top student loan refinancing companies, and you'll strongly benefit from comparing your options amongst these lenders. Also, make sure that you're always paying attention to our list of the best student loan refinancing bonus offers.
To make it easy, we recommend using Credible. Try Credible and compare your options in 2 minutes. As a bonus, College Investor readers get a $1,000 gift card bonus if they complete a refinance!
If you're not quite sure where to start or what to do, consider hiring a CFA to help you with your student loans. We recommend The Student Loan Planner to help you put together a solid financial plan for your student loan debt. Check out The Student Loan Planner here.
If you love one of these companies - let us know and help other readers out!
Methodology
The College Investor is dedicated to helping you make informed decisions around complex financial topics like finding the best student loan refinancing offers. We do this by providing unbiased reviews of the top banks and lenders for our readers, and then we aggregate those choices into this list.
We have picked student loan refinancing lenders based on our opinions of how easy they are to use, their interest rates, any bonuses provided, and a variety of other factors. We believe that our list accurately reflects the best student loan refinancing options in the marketplace for consumers.
Laurel Road rates as of 03/31/2023. Rates subject to change. Terms and Conditions apply. All products subject to credit approval.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Editor: Clint Proctor Reviewed by: Claire Tak