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Here's How Much You Could Save by Refinancing Your Student Loans

Feb 04, 2016

You’re not stuck with your current student loan repayment plan.

Just as the number of federal student loan repayment options has grown recently, so has the number of private lenders competing to refinance your debt.

Below are five of the best-known companies that refinance federal and private education debts. The information in the chart was supplied by each company and not independently verified. As you'll see, their average interest rate reductions and average amounts saved vary, in part because some companies favor borrowers with higher interest rates and debt loads.

To help determine which of these companies (if any) would be the best fit for refinancing your loan, try Credible’s calculator, where you can enter your personal details and see the loan terms each lender is likely to offer.

Finally, one big caveat: If you refinance a federal student loan with one of these private lenders, you will be giving up some consumer protections associated with federal loans, such as loan forgiveness for public service jobs and the ability to enroll in an income-based repayment plan.

5 Big Private Refinancers
These are five of the best-known companies that refinance existing student loans—and how much money they say they could save you.
CompanyWho qualifies?APRRepayment periodMonthly paymentAvg. interest rate reductionAvg. savings per borrowerMin. debt required
Citizens BankMust have made three on-time loan payments, or 12 payments if borrower lacks a bachelor's degree. Need strong credit history and a minimum annual income of $24,000. Can have a co-signer.Fixed: 4.7%-8.9%
Variable: 2.3%-6.9%
5, 10, 15, and 20-year termsNo answer1.5%$135 per month$10,000
CommonBondGraduated. Employed or have proof of a job offer. Have good income and credit history. Can have a co-signer.Fixed: 3.7%-6.5%
Variable: 1.9%-4.9% Hybrid: 4.2%-5.6%
5, 10, 15, and 20-year terms, plus a 10-year hybrid that combines fixed and variable interest ratesCan adjust monthly payment through loan servicer.No answer$14,000$3,500
Darien Rowayton BankGraduated. Employed. Need minimum FICO score of 680. Can have a co-signer.Fixed: 3.5%-6.3%
Variable: 1.9%-4.5%
5, 7, 10, 15, and 20-year termsMust be paid in equal monthly amounts.2%$15,000$5,000
EarnestGraduated. Employed or have written offer to start work. Reside in one of 37 states Earnest services. Have good savings and payment history. Can have a co-signer.Fixed: 3.5%-7.3%
Variable: 1.9%-5.8%
Anywhere between 5 and 20 years, to the nearest monthCan increase or decrease monthly payment through website's "loan dashboard."2.4%$17,936$5,000
SoFiGraduated. Employed or have an offer to start within 90 days. Meet SoFi's income and payment history requirements. Not available for Nevada residents.Fixed: 3.5%-7.2%
Variable: 1.9%-5.2%(Capped at 8.9% for 5, 7, 10 year terms and 9.9% for 15, 20 year terms.)
5, 7, 10, 15, or 20-year termCan increase or decrease monthly payments when needed.3%$14,000$10,000
Notes: Borrowers must have gone to accredited colleges or universities. APR: Individual rates will be based on borrower's financial history and income. Lowest rates assume automated payments, which comes with a small reduction in rates.
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