When it comes to managing student loan debt, finding the best student loan refinance company with competitive rates is crucial. Whether you’re looking to lower your interest, switch to a fixed-rate loan, or adjust your payment term, the right refinance company can make a significant difference.
With a myriad of options available, it’s essential to consider factors such as interest rates, repayment terms, and customer service.
So let’s explore the Best Student Loan Refinance Companies with Rates, so you can make an informed decision to effectively manage and potentially reduce your student loan burden.
Earnest – BEST OVERALL
APR Range: Starting at 5.19% (fixed) and 5.99% (variable)
Loan Amounts: $5,000–$500,000
Loan Terms: 5–20 years
Earnest is a highly regarded company for student loan refinancing. Earnest is unique in two ways. Firstly, they allow you to skip one payment per year if you’ve been paying on time, but this increases the overall amount you owe because the missed payment is added to the end of your loan, along with extra interest.
However, each skipped payment reduces your flexibility for future postponements. Secondly, Earnest offers many options for loan repayment periods, including short ones like a month, giving you more flexibility to find a payment plan that suits your budget.
When you request a rate quote from Earnest, they’ll consider your monthly budget to help you choose the best loan option.
Eligibility Requirements:
- You need a credit score of at least 665 to get a refinance loan.
- Sometimes, both the student borrower and the co-signer need to have good credit.
- You must be a U.S. citizen or permanent resident.
- You should have savings that can cover at least two months of expenses.
- DACA recipients need a co-signer who lives in the U.S.
- These loans are available in all states except Nevada.
- Variable-rate loans are not offered in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, and Texas.
Pros:
- Custom loan options
- Skip-a-payment option available
- Available to international students with Prodigy loans
Cons:
- Doesn’t allow co-signers
- Restrictions for residents of some states
- Skip-a-payment option reduces forbearance length
Credible
APR Range: 5.24%–12.44%
Loan Amounts: $5,000–$750,000
Loan Terms: 5–25 years
Credible isn’t a lender itself; instead, it’s a marketplace where you can compare personalized rates from multiple companies all at once. Think of it like a matchmaking service for student loan refinancing and other types of loans.
They’re open about the lenders they work with, which helps you narrow down your options. They have 10 partner lenders, making it a quick way to find rates.
Credible also gives you a $200 gift card if you find a better offer from a lender they don’t work with.
Eligibility Requirements:
- Available in all 50 states.
- You need a credit score of at least 670, but this might vary depending on the lender.
- You must be a U.S. citizen or permanent resident.
Pros:
- Very competitive rates
- $200 best rate guarantee
- Wide range of lenders to choose from
Cons:
- Loan options could differ
- Potential requirement to become a member of a credit union
- Certain partner lenders cater to specific states
SoFi
APR Range: 5.24%–9.99%* with autopay
Loan Amounts: $5,000 minimum. No maximum.
Loan Terms: 5–20 years
SoFi is different because it gives borrowers lots of extra benefits, like help finding a job, advice on managing money, and access to special events and lounges. Also, it lets graduates take over paying back loans their parents took out.
But if you apply with someone else, like a parent, it might take longer to get approved. And once they’re on the loan, you can’t take them off unless you refinance again by yourself.
Eligibility Requirements:
- You must have finished at least an associate’s degree from a Title IV school.
- Minimum credit score not disclosed.
- Available in all 50 states and Washington, D.C.
- You need to be a U.S. citizen or resident, including DACA recipients.
Pros:
- Good support for financial difficulties
- Offers career coaching, special events, and additional benefits
- Allows refinancing of parent loans under your own name
Cons:
- Spouses cannot refinance loans jointly
- Applying with a co-signer might slow down the process
Citizens Bank
Citizens Bank is one of the rare lenders that doesn’t require a credit history. However, if you don’t have one, you must have made your last 12 student loan payments on time to show you’re creditworthy.
If you need a co-signer, be prepared for a long commitment. Your co-signer can only be released after three years of making on-time payments. But the loan is quite affordable, especially with two discount options.
Signing up for autopay gets you a 0.25% rate discount. If you or your co-signer already had another Citizens account when applying for the loan, you’ll get an additional 0.25% off the rate.
Eligibility Requirements:
- Available in all 50 states, Washington, D.C., and Puerto Rico.
- You must be a U.S. citizen or permanent resident. Non-permanent residents may need a co-signer who meets certain requirements.
- If you didn’t complete your degree or have an associate’s degree, you need to have made your last 12 student loan payments on time.
Pros:
- Offers high borrowing limits
- Two discount options are available
- Provides affordable repayment plans tailored for doctors
Cons:
- Lengthy period for co-signer release
- Limited details on loan requirements provided
- Special requirements if you didn’t complete a degree
PenFed
APR Range: 7.74%–9.93%
Loan Amounts: $7,500–$300,000
Loan Terms: 5–15 years
PenFed Credit Union is unique because it lets spouses combine their individual student loans into one when refinancing. This is useful if both of you have private student loans and can get a better rate together. Otherwise, if you apply separately, your combined debts count twice against you.
If you’re refinancing on your own and need a co-signer, PenFed is a good option. They have a great policy: After just 12 payments on time, your co-signer can be released, as long as you can handle the loan by yourself then.
Eligibility Requirements:
- Available in all 50 states.
- They don’t say what the minimum credit score needed is.
- You must be a U.S. citizen, permanent resident, or international student.
Pros:
- Quick co-signer release
- Open to everyone for membership
- Allows spouses to combine their loans for refinancing
Cons:
- Requires joining the credit union
- No option for variable-rate loans
Laurel Road
APR Range: 5.19%–10.34%* with autopay
Loan Amounts: $5,000–No Maximum
Loan Terms: 5–20 years
Laurel Road is one of the few companies that focuses on borrowers with high loan balances, especially those in the medical field. They offer special discounts and affordable repayment plans starting at $100 for medical residents and fellows.
However, you don’t have to be a doctor or work in healthcare to benefit from Laurel Road’s refinancing options. They offer various ways for everyone to save. Laurel Road also provides a wide range of banking services.
If you sign up for these services and meet certain requirements (which are usually not too difficult), you could qualify for even lower rates on your student loan refinance.
Eligibility Requirements:
- Must be a U.S. citizen or permanent resident.
- Available in all 50 states plus Washington, D.C.
- Only refinances loans for graduate studies, four-year undergraduate studies, or certain medical associate degrees.
- Typically, you must have completed your degree, except if you’re refinancing as a parent or in your final semester with a job offer.
Pros:
- Offers very low student loan refinance rates
- Allows children to take over parent student loans
- Provides special benefits for healthcare professionals
Cons:
- Doesn’t offer deferment if you return to school
How Does Refinancing Student Loans Work?
Refinancing your student loans involves taking out a new loan from a different lender to pay off your current student debt. This new loan will come with a different interest rate and repayment period, potentially leading to lower interest costs or monthly payments. It’s also a way to merge multiple student loans into one, simplifying repayment.
However, it’s important to note that refinancing is only offered by private lenders. If you refinance federal student loans, they become private debt, resulting in the loss of federal benefits such as income-driven repayment plans and loan forgiveness programs.
To retain federal benefits, consider consolidating federal loans into one payment with a direct consolidation loan. This averages your interest rates and offers a repayment period of up to 30 years while preserving federal benefits.
If you have only private loans or are willing to forgo federal benefits, refinancing might be suitable. Use a student loan refinance calculator to assess potential savings or reduced payments.
Final Words
Refinancing your student loans can be a great way to save money on interest and simplify your monthly payments. There are many reputable companies to choose from, each with its unique benefits and requirements.
When considering which company to use, it’s important to keep your specific needs in mind and compare rates and terms from multiple lenders. Remember to check your credit score and eligibility requirements before applying, and be aware of any fees associated with the loan.
With careful research and consideration, you can find the best student loan refinance company for your needs and start saving money today.
