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Best Student Loan Refinance Companies

Kara Perez Kara Perez  –  Contributing Writer Last Updated: September 2, 2020

Maybe you’ve thought about refinancing your student loans to try and save money, but you don’t know where to start. That’s understandable because there is a broad landscape of companies and lenders that refinance student loans. With the right information and guide, figuring out how to refinance student loans doesn’t have to be daunting. It’s important to compare lenders to find the best student loan refinance lenders.

Lending Partner
Min. Loan
Fixed APR
Eligible Degrees
  • College Ave
    Min. Loan
    $5,000
    Fixed APR
    Starting at 3.34%
    Eligible Degrees
    Undergraduate & Graduate
    Offer Details

    *College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. All rates shown include the autopay discount. The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 1/27/2021. Variable interest rates may increase after consummation.

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  • Credible
    Min. Loan
    Varies
    Fixed APR
    2.55%–9.15%
    Eligible Degrees
    Undergraduate & Graduate
    Offer Details

    The lenders on the Credible.com platform offer fixed rates ranging from 2.79% – 9.15% (2.79% – 9.15% APR). Variable interest rates offered by the lenders on Credible.com range from 1.89% – 8.90% (1.89% – 8.90% APR). Variable rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.

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  • Education Loan Finance
    Min. Loan
    $15,000
    Fixed APR
    2.58%
    Eligible Degrees
    Undergraduate, Graduate & Parent Loans
    Offer Details

    Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 07-29-2020. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. See Eligibility Requirements for more information. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

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  • LendKey
    Min. Loan
    Varies
    Fixed APR
    2.95%–7.63%
    Eligible Degrees
    Undergraduate & Graduate
    Offer Details

    The minimum loan amount is $5,000 (Except if you are a resident of AZ: $10,001; CT: $15,001; MA: $6,000). The maximum is $125,000 if you have an undergraduate degree, $175,000 if you have a graduate degree, and $300,000 for select medical degrees.

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  • SoFi
    SoFi Logo
    Min. Loan
    $5,000
    Fixed APR
    2.99%–6.94% (with AutoPay)
    Eligible Degrees
    Undergraduate & Graduate
    SoFi Logo
    Offer Details

    1. Fixed rates from 2.99% APR to 6.88% APR (with AutoPay). Variable rates from 2.25% APR to 6.43% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.13% plus 2.37% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The discount will not reduce the monthly payment; instead, the interest savings are applied to the principal loan balance, which may help pay the loan down faster. Enrolling in autopay is not required to receive a loan from SoFi. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score.Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

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In this article

    The 5 best student loan refinancing of 2021

    ProviderMax AmountRepayment PeriodFixed APR
    Earnest$500,0005–20 yearsas low as 2.98%
    SoFiFull loan balance5–20 years2.99%–6.94% (with AutoPay)
    CommonBond$500,0005–20 years2.59%–6.74%
    Splash FinancialNo max5–25 yearsas low as 2.54%
    Citizens One$500,0005–20 years2.89%–9.10%

    *Rates accurate as of May 2021

    The 5 best student loan refinance companies of 2021

    Best for flexible payment terms – Earnest

    Learn More

    One of the standout features that Earnest offers is borrowers get the chance to skip a payment once every 12 months after they have made six consecutive months of payments.

    Fixed APR
    as low as 2.98%
    Variable APR
    as low as 1.99%
    Fees
    None
    SimpleScore
    4.8 / 5.0
    close
    SimpleScore Earnest 4.8
    Fixed APR 5
    Perks 5
    Transparency 4
    Variable APR 5
    Fees 5

    Earnest was founded in 2013 and strives to offer flexible and customizable plans to customers. It has served over 105,000 customers and refinancing comes with no origination fee.

    It also offers military deferment and a rate reduction program, for borrowers who have come into financial difficulty. Interest rates can be modified for up to six months under this program. The application uses more than just credit scores and history to determine eligibility, such as savings accounts or a history of no late fees, making more people eligible for its loans. However, Earnest does require a minimum credit score of 650.

    Best for member perks – SoFi

    Check Rates

    Sofi focuses on high earners for refinancing candidates.

    Fixed APR
    2.99%–6.94% (with AutoPay)
    Variable APR
    2.25%–6.49% (with AutoPay)
    Fees
    Late fee
    SimpleScore
    3.6 / 5.0
    close
    SimpleScore SoFi 3.6
    Fixed APR 4
    Perks 4
    Transparency 3
    Variable APR 3
    Fees 4

    Choosing SoFi as your lender opens the door to many perks, such as career coaching, financial planning and exclusive member events. Events might include local happy hours, networking events or a financial workshop to develop your money smarts.

    SoFi also focuses on customer service outside of just its financial tools, offering a wealth of educational resources for its borrowers, everything from blog posts to individual financial planning sessions. It takes a big picture approach to financial steps and aims to serve borrowers at different life stages.

    SoFi Disclosure

    1. Fixed rates from 2.99% APR to 6.88% APR (with AutoPay). Variable rates from 2.25% APR to 6.43% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.13% plus 2.37% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The discount will not reduce the monthly payment; instead, the interest savings are applied to the principal loan balance, which may help pay the loan down faster. Enrolling in autopay is not required to receive a loan from SoFi. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score.Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

    Best for hybrid APRs – CommonBond

    Check Rates

    CommonBond offers borrowers the option of a variable, fixed or hybrid APR.

    Fixed APR
    2.59%–6.74%
    Variable APR
    2.50%–6.85%
    Fees
    N/A
    SimpleScore
    4 / 5.0
    close
    SimpleScore CommonBond 4
    Max Fixed APR 4
    Perks 5
    Transparency 3
    Max Variable APR 4
    Fees 4

    This APR approach offers a fixed rate for part of the life of your loan and then switches to a variable rate, which could be appealing to many borrowers. This is unusual and an outstanding feature for a lender. Plus, you can get a 0.25% discount on your interest rate when you sign up for autopay. The website also features a handy Refi 101 Guide that comes with a short quiz and explains the basics of refinancing in a digestible manner.

    Best for med school students – Splash Financial

    Check Rates

    Splash Financial claims a 95% satisfaction rate and offers to refinance specifically for med school students.

    Fixed APR
    as low as 2.54%
    Variable APR
    as low as 1.89%
    Fees
    N/A
    SimpleScore
    3.5 / 5.0
    close
    SimpleScore Splash Financial 3.5
    Max Fixed APR 4
    Perks 3
    Transparency 4
    Max Variable APR 3
    Fees N/A

    Residents and medical fellowship students who refinance and fit the term have the option to pay just $100 a month during their residencies and fellowships, and for six months afterward. But the maximum length of time to pay $100 a month is 84 months. Both fixed and variable rates are offered with the lowest interest rate being as low as 1.89% (variable), which could make a big payment difference to someone in a long-term residency.

    Splash Financial Disclosure

    Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

    Best for parent loans – Citizens One

    Learn More

    Citizen Bank offers a wide range of refinancing terms, from five to 20 years, and can help you refinance up to $500,000 in student loans.

    Fixed APR
    2.89%–9.10%
    Variable APR
    2.19%–8.85%
    Fees
    N/A
    SimpleScore
    3 / 5.0
    close
    SimpleScore Citizens One 3
    Rates 3
    Perks 3
    Transparency 4
    Loan Amount 1
    Fees 4

    Specifically for parents, its Parent Education Refinance Loans can include any student loan debt used to finance a child’s education. Federal Direct PLUS loans and private student loans from other lenders are included in that. Loans that parents took out only in their name or that they co-signed on are also eligible. There are no application, origination or disbursement fees in the application process either, which might save you some money.

    Citizens One Disclosure

    Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. If LIBOR is no longer available, for among other reasons because no Index administrator acceptable to the Lender in its sole discretion continues to provide the Index or because the Index administrator or its regulator publicly announces that the Index is no longer reliable or representative, then the variable rate is based upon the 30-day average SOFR index, as published by the Federal Reserve Bank of New York. As of April 1, 2021, the one-month LIBOR rate is 0.11%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.

    Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.

    Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

    What is student loan refinancing?

    Student loan refinancing is an option to change how and what you pay on your loans each month. Essentially, refinancing a student loan replaces your current loan with a new one, complete with a new payment amount, a new term length and hopefully a lower interest rate.

    Refinancing may help you pay less in interest over the length of your loan term, have more manageable monthly payments or help you get a co-signer off of a loan.

    How to refinance your student loans

    Refinancing your student loans can be a smooth and straightforward process. Many lenders offer online applications, and processing can take just a few days. Here are the steps to follow if you want to refinance your student loans.

    1. Find at least lenders you are interested in refinancing with. It’s always a good idea to shop around to see what different lenders are able to offer you.
    2. Prepare the information you’ll need to apply. This includes checking your credit report for any errors and disputing them if so, knowing your credit score beforehand, knowing your total student loan balance and interest rates for each loan, and knowing your total monthly payment.
    3. Get estimates from the lenders you’ve chosen.You may have to fill out applications to get loan offers, or you may be able to get prequalified. Compare the offers and see which works best for you. A loan application generally asks for personal information like your address, income, current loan information, assets, and age of loans.
    4. Compare offers and choose one. When you’ve chosen the offer, you’ll sign a contract for the new terms of your debt. You’ll have to get the 10-day payoff amount from your original lender and submit it to your new lender. There is a three-day period called the recission period, where you or the lender can pull out of the agreement. Until this is completed and the loan officially approved, you need to continue to make payments to your original lender.
    5. You have successfully refinanced. The new lender pays off your debt to your original lender, and you start making payments on your new debt terms to this new lender.

    What’s the difference between student loan refinancing and consolidation?

    Student loan consolidation and student loan refinancing both streamline your debt repayment process by taking your original debt terms and offering you new ones. Either option can be a useful tactic in your debt payoff journey. However, there are key differences between the two processes.

    Debt consolidation bases your new interest rate on your old interest rates. It takes the weighted average of your current interest rates to create your new interest rate.

    Refinancing bases your new interest rate on your credit score and ability to repay the debt. This may be a higher or lower rate, depending on your credit score.

    Keep in mind however,  there are caveats in refinancing federal student loans:

    • Some lenders will not refinance federal student loans at all.
    • To consolidate federal loans, you must do so with the Department of Education’s federal loan program.
    • You cannot refinance student loans through the Department of Education.

    Refinancing through a private lender may require you to give up some of the protections that come from federal loans, such as loan forgiveness or income-based repayment options. Debt consolidation doesn’t require this.

    Too long, didn’t read?

    Student loan refinancing might be an effective way to get control of your debt payoff plan, but make sure you understand the details of what refinancing means for you. Compare the pros and cons of student loan consolidation versus refinancing, and definitely shop around a few lenders before you make any final decisions. Knowledge is always power when it comes to money.

    We welcome your feedback on this article and would love to hear about your experience with the student loan refinance lenders we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

    Keep Reading

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    Best Private Student Loans of May 2021

    Best Student Loan Refinance Companies

    woman working on laptop - student loan consolidation

    Student Loan Consolidation and Refinancing Guide

    Methodology

    SimpleScore

    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore™

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best student loans of 2020.

    Max Fixed Rate

    Lenders who offered a lower maximum fixed rate were awarded higher scores.

    Perks

    We awarded higher scores for lenders that list more perks including services, discounts and special offers for their borrowers.

    Transparency

    Lenders that laid it all bare by publishing important data about products — APR, offered loan amounts, applicable fees and customer support contact links — scored higher for transparency.

    Loan Amount

    Lenders that offered higher loan amounts compared to others received higher scores. 

    Fees

    We awarded higher scores to lenders that have fewer loan fees for borrowers. 

    Kara Perez

    Contributing Writer

    Kara Perez is the founder of Bravely Go, a feminist financial education company. Bravely focuses on bringing actionable, intersectional and accessible financial education to people via pop up events and online community. Additionally, Kara co-hosts the award-winning podcast The Fairer Cents, which has been named the top money podcast for women by Forbes and The Balance. Kara has been featured in Forbes, Glamour, ABC Nightline News, and US News and World Report as a financial expert. She lives in Austin TX.

    Reviewed by

    • Courtney Mihocik
      Courtney Mihocik
      Loans Editor

      Courtney Mihocik is an editor at The Simple Dollar who specializes in personal loans, student loans, auto loans, and debt consolidation loans. She is a former writer and contributing editor to Interest.com, PersonalLoans.org, and elsewhere.