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You may want to refinance your student loan for a variety of reasons. Perhaps you're looking to pay less in interest, switch from a variable-rate to a fixed-rate loan, or to change up your payment term length.
The Best Private Student Loan Refinance Companies of 2024
- Earnest Student Loan Refinancing
- SoFi Student Loan Refinancing
- PenFed Student Loan Refinancing
- Laurel Road Student Loan Refinancing
- Splash Financial Student Loan Refinancing
- Citizens Bank Student Loan Refinancing
- LendKey Student Loan Marketplace
- College Ave Student Loan Refinancing
Compare the Top Student Loan Refinance Lenders
You should be very cautious about refinancing if you have federal loans, as you can lose key protections and repayment options (and forgiveness) if you switch to private loans. Before you refinance, you need to decide if the process is right for you. If you choose to turn to a private lender to refinance your loans, here are several of the best places to begin your search.
Earnest Student Loan Refinancing
Earnest has some of the most competitive starting rates of any of the best lenders on our list, so if you have excellent credit, it could be a good choice for you.
Like Earnest's undergraduate and graduate new loans, its refinanced loans have a special perk: the ability to skip one payment every year. You can ask for your first skip once you've made at least six months of consecutive on-time, full principal and interest payments, as long as your loan is in good standing. However, interest will accrue during this time, and the lender will extend the final payoff date of your loan by the length of the skipped payment period.
Look out for: Higher maximum interest rates. Earnest eagerly shares its minimum rates, but the company doesn't disclose those on the maximum end anywhere. If you have a shakier credit history, you may end up paying more interest than you initially expected.
Read Insider's full review of Earnest student loans.
SoFi Student Loan Refinancing
SoFi offers a unique feature called unemployment protection: Eligible borrowers are able to suspend payments on your loans if you lose your job through no fault of your own, for up to 12 months.
In addition to suspending payments for up to 12 months in the event of a jobs loss, SoFi will provide job payment assistance as part of its unemployment protection plan. However, interest will continue to accrue during this forbearance period and will be added to your principle.
Watch out for: Third-party loan servicing. Once your loan is funded, your loan servicer will be MOHELA, SoFi's third-party loan provider. If you prefer a direct relationship with your lender, this might not be the best choice for you.
Read Insider's full review of SoFi student loans.
PenFed Student Loan Refinancing
PenFed offers the lowest maximum fixed refinance rates of any lender on our list. If you have poorer credit and are still able to qualify for a PenFed refinanced loan, you might get a better deal with it than elsewhere.
You need to be a member of the credit union to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify. If that doesn't apply, you can easily join by opening a savings account with a $5 minimum deposit.
Watch out for: Doesn't offer variable-rate loans, which often start at lower rates than fixed-rate loans — although it can overtake a fixed loan over time. If you want a variable loan, you won't be able to get one with PenFed.
Read Insider's full review of PenFed student loans.
Laurel Road Student Loan Refinancing
Laurel Road offers some of the best fixed rates of all of our lenders, but keep in mind that only 11% of applicants who applied between July 2019 and June 2021 qualified for Laurel Road's top rate, according to the company's website. Don't bank on getting it unless you have excellent credit.
If you sign up for a Laurel Road checking account, you'll receive an interest rate discount on your refinanced loan.
Look out for: Late fees. Laurel Road's late fee is $38 or 5% of your payment, whichever is less. If you fall behind on payments, the total cost of your loan will add up.
Read Insider's full review of Laurel Road student loan refinancing.
Splash Financial Student Loan Refinancing
Splash Financial is a student loan marketplace, not a direct lender. A marketplace allows you to compare loan offers from multiple lenders at once. The marketplace allows you to check your rates with no impact on your credit score.
As a result, it's tricky to nail down the exact terms you'll receive with Splash Financial. For instance, some of the company's lending partners have no maximum amount you can refinance, while other have a cap. You may like Splash Financial if you want to compare a bunch of different companies all at once with one application.
Watch out for: Splash Financial doesn't underwrite its own loans. As a result, you'll be dealing with whatever partner lender you choose and may have a different experience with them managing your loan than the one you expected.
Read Insider's full review of Splash Financial student loan refinancing.
Citizens Bank Student Loan Refinancing
Citizens Bank's top loan amount of $750,000 is the most of any of the lenders we compiled that disclose a maximum loan amount.
Citizens Bank is also the only brick-and-mortar bank we have listed, which may be a good option for those who are more comfortable with traditional banking.
Watch out for: High minimum loan amount. Citizens Bank's minimum of $10,000 is the highest of any lender on our list. If you have a small amount of debt, you might find that another lender is a better fit for you.
Read Insider's full review of Citizens Bank student loan refinancing.
LendKey Student Loan Marketplace
LendKey is a marketplace, not a direct lender. A student loan marketplace allows you to compare loan offers from multiple lenders at once. The marketplace allows you to check your rates with no impact on your credit score.
LendKey partners with credit unions and community banks, so you may get a more personalized level of service than you would with a Splash Financial partner.
Watch out for: Low maximum loan amount. LendKey has the lowest maximum refinance amount of any of the best lenders on the list. This probably won't be an issue unless you have a significant amount of loan debt.
Read Insider's full review of LendKey student loans.
College Ave Student Loan Refinancing
College Ave offers 11 repayment term lengths, making it among the most flexible student loan lenders with regards to loan terms.
You're able to take out a loan for five to 15 years with College Ave. Many other lenders limit your selection to four or five options — though some others do offer 20-year term lengths (which College Ave does not).
Watch out for: Lower maximum refinancing amount. If you have a truly significant amount of debt (we're talking hundreds of thousands of dollars), you may not be able to refinance all your debt with College Ave. This won't be the case for the vast majority of borrowers, but it bears noting.
Read Insider's full review of College Ave student loans.
Student loan refinancing vs. consolidation
The difference between student loan refinancing and consolidation can be confusing, especially because people sometimes use the terms interchangeably. However, these are two different processes, and depending on your financial goals, one may be better for you than the other.
Refinancing involves restructuring your current loan or loans and getting a new one with updated terms. You'll make a single monthly payment. You can refinance private and federal loans into one combined loan. When you refinance federal loans with a private lender, you'll lose some key borrower protections.
Consolidation is the process of combining multiple loans into one. You'll make a single monthly payment after consolidation. When you consolidate loans, your new loan consolidation rate is the weighted average of your old loans' rates, rounded up to the nearest eighth of a percent.
When to Refinance Student Loans?
If you can get a lower interest rate on your loan, it might pay off to refinance. However, federal loans have some unique benefits, so only refinance after assessing all of your options.
You don't have anything to lose by refinancing a private loan if you can get a better rate and save money. You won't forgo any federal protections such as income-driven repayment plans, deferment, or forbearance.
Which Student Loan Refinancing Lender Is the Most Trustworthy?
The Better Business Bureau, a non-profit organization focused on consumer protection and trust, measures businesses using information like their responsiveness to consumer complaints, truthfulness in advertising, and transparency about business practices. Here is each company's score:
All of our picks are rated A or higher by the BBB, with the exception Splash Financial. Splash Financial received a B+ rating because of eight complaints filed against the business.
It's important to note that a good BBB grade doesn't guarantee you'll have a good relationship with your lender. Ask family and friends about their firsthand experience with the company before signing on the dotted line, or read online customer reviews.
FAQs
The best time to refinance student loans may be after you've recently improved your credit score. That way, you'll be more likely qualify for a lower rate and save on the overall cost of your loan.
There's no set limit on how often you can refinance your student loans.
There is no minimum credit score you need to refinance your student loans, however, you'll likely get a better rate with a higher credit score.
Your credit and credit history is the biggest factor in your approval chances. If you have a poor credit score, it'll be harder for you to get the green light for a new loan, but you may be able to enlist a cosigner to boost your likelihood of approval with one of the best companies.
No, student loans cannot be forgiven if you refinance.
Be careful before choosing to refinance federal student loans. You'll lose key protections such as federal loan relief programs like Public Service Loan Forgiveness. You also won't be eligible for specific repayment options like income-driven repayment plans, which take your specific income and family size into account when determining monthly payments.
Why You Should Trust Us: How We Chose the Best Student Loan Refinancing Companies
Personal Finance Insider's mission is to help you make the best, most informed decisions with your money. To do that, we combed through companies, comparing interest rates, terms, and fine print so you don't have to. We also compared our findings to other personal finance sites. We looked for several factors in determining the best companies, including:
- Interest: We looked for lenders offering competitively low interest rates, and we prioritized lenders with the lowest interest on both fixed and variable loans.
- Nationwide availability: We searched for loans available in all or most US states.
- Variety of term lengths: We picked lenders that offered term lengths that fit many borrowers' different situations.
- No or few fees: We prioritized lenders that didn't charge fees, like origination fees or prepayment penalties. Some of our lenders still charge late fees, however.
- High maximum loan amount: We prioritized lenders that offer high maximum loan amounts to ensure you're able to refinance your loans with the same company.
- Better Business Bureau rating: We chose lenders that were given high marks by the BBB as a part of our screening method for trustworthiness.
See our full ratings methodology for student loans >>
Notice: SoFi's Refinance Loan is a private student loan. Understand that when you refinance federal loans, you forfeit all flexible federal repayment options that are or may become available to federal student loan borrowers. If you expect to incur financial hardship that would affect your ability to repay, you should consider federal consolidation loan options. Notice: Though SoFi offers an Unemployment Protection Program and career services, SoFi's Refinance loan is a private loan. Understand that when you refinance federal loans, you forfeit certain flexible repayment options that are or may become available. If you expect to incur financial hardship that would affect your ability to repay, you should consider federal consolidation loan options. *NOTICE: If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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