Best Student Loan Refinance Companies

Refinancing your student loans can help some borrowers pay off their debt quicker and save money in the long run. With the Federal Reserve expected to start cutting rates in the coming months, student loan refinance rates will likely decline — meaning it may be a good time to pursue the strategy.

Read on for our best student loan refinance company reviews, plus industry insights and a comprehensive guide on when to refinance student loans. If you're looking for more information on in-school loans to pay for college, see our picks for best student loans.

Our Top Picks for the Best Student Loan Refinance Companies of 2024

• RISLA – Best for Borrower Protections
• Credible - Best Student Loan Marketplace
• Earnest - Best for Flexible Repayment Terms
• MPOWER Financing – Best for International and DACA Students
• SoFi – Best for Member Benefits
• Laurel Road - Best for Medical Professionals

Best Student Loan Refinance Reviews

WHY WE CHOSE IT

RISLA stands out from other lenders because of its borrower protection programs, including an income-based repayment option. Under this program, monthly payments will never exceed 15% of the borrower and cosigner’s discretionary income. And if there is still a loan balance after 25 years on the repayment plan, RISLA will forgive the remainder. There's also an economic hardship forbearance to help borrowers experiencing financial hardship, unemployment or disability manage their debt.

See rates on RISLA's Secure Website >>

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WHY WE CHOSE IT

We chose Credible as our best student loan marketplace because its prequalification tool allows borrowers to check personalized rates from multiple lenders after filling out a single application. Credible partner lenders include Citizens Bank, EdvestinU, ELFI, INvestEd, LendKey, MEFA and RISLA. All of Credible’s partners offer competitive rates with no origination fees.

See full Credible student loan refinance review>>

See rates on Credible's Secure Website >>

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WHY WE CHOSE IT

Earnest is our top pick for customizing loan repayment due to its flexible payment options, which is unique among lenders. Earnest allows borrowers to pick the monthly payment that fits their budget, and sets the repayment term based on that amount (even if it results in an uncommon number like 7.5 years).

Read full Earnest student loan refinance review>>

See rates on Earnest's Secure Website >>

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WHY WE CHOSE IT

MPower Financing is a public benefit corporation that specializes in financing higher education for international students. Most lenders require borrowers to be U.S. citizens or permanent residents to qualify for student loan refinancing, but MPOWER will allow borrowers to refinance loans originated in several countries, including Australia, Austria, Brazil, the Dominican Republic, Germany, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Switzerland, Spain, the U.K. and the U.S.

Read full MPower student loan refinance review>>

See rates on MPower Financing's Secure Website >>

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Why we chose it: SoFi stands out for its variety of membership perks. Anyone with a SoFi product (banking and investment services, personal loans, mortgage loans, credit and student loans) gets access to free financial planning, estate planning discounts, networking events and more.

Read full SoFi student loan refinance review>>

See rates on SoFi's Secure Website >>

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Rates current as of July 15, 2024, rates subject to change. Terms and Conditions apply. All products are subject to credit approval. Please see all Laurel Road disclaimers here.

WHY WE CHOSE IT

Laurel Road is an online lender specializing in student loan refinancing for doctors, offering lower rates for healthcare professionals. Plus, it has a program for individuals participating in a medical residency program that allows you to refinance your loans and pay just $100 per month for up to four years during your residency or fellowship.

See full Laurel Road student loan refinance review>>

See rates on Laurel Road's Secure Website >>

Other Companies We Considered

The companies reviewed below offer competitive student loan refinance interest rates and loan terms that may suit many borrowers. Readers will find short reviews that outline each lender's pros and cons, as well as a highlights table listing loan terms and eligibility requirements. Finally, we explain why the company didn’t make it into our top picks.

Splash Financial

WHY IT DIDN'T MAKE THE CUT

Splash Financial offers competitive rates and an easy loan application. Like other marketplaces, policies and repayment terms will vary by lender. But unlike our top pick for marketplace, Splash doesn’t offer added bonuses or incentives to use the platform.

For more information, read our full review of Splash Financial>>

See rates on Splash Financial's Secure Website >>

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Navy Federal Credit Union

WHY IT DIDN'T MAKE THE CUT

Navy Federal only services members of the military or those who have family or household members in the armed forces. By contrast, other credit unions allow any one to join.

See full Navy Federal student loan refinance review>>

See rates on Navy Federal's Secure Website >>

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Citizens Bank

WHY IT DIDN'T MAKE THE CUT

Citizens Bank has strict eligibility requirements. Borrowers need good to excellent credit to qualify, and the refinanced loan minimum is $10,000 — higher than other lenders require. Citizens Bank does have forbearance programs, but the lender says decisions are made on a case-by-case basis rather than having set requirements or durations.

For more information, check out our full review of Citizens Bank's refinancing options.

See rates on Citizens Bank's Secure Website >>

Student Loan Refinance Guide

Students and parents may be able to save money by refinancing, especially during periods of low interest rates. But refinancing isn’t a smart move for every borrower, so before taking that step, consider the implications of refinancing and if the outcome will be beneficial to your particular financial situation. For example, federal borrowers may score a lower interest rate but lose financial protections that could be crucial down the road.

Use our guide as a starting point to learn about refinancing, how it works and whether it’s the right choice to manage your student debt.

Table of Contents:

• How does refinancing student loans work?
• Should you refinance your student loans?
• Steps to refinance your student loans

How does refinancing student loans work?

When you refinance your student loan you are replacing your current loan with a new loan and new terms from a private lender. Generally, borrowers refinance student loans to extend their repayment period (and therefore lower monthly payments), obtain a lower interest rate so they’ll pay less over the life of the loan or consolidate multiple student loans into one single payment. Some loan borrowers may find terms that achieve all three at once.

You can only refinance student loans through a private lender, not the federal government. Experts caution people with federal loans to think very carefully about their situation before refinancing, because they’ll be giving up federal benefits that come with government loans such as student loan forgiveness programs and income-driven repayment plans. If your student loan is from a private lender, there's little downside to looking for better terms. You can refinance private student loans with your current lender or choose a different lender.

Student loan refinancing vs. Student loan consolidation

One of the benefits of refinancing through a private student loan lender is that borrowers can consolidate multiple loans into one and have a single monthly payment under one servicer. But this benefit is not limited to private lenders. Students with eligible federal loans can consolidate their debt with a Direct Consolidation Loan, though there are pros and cons with that process as well.

Here are the key differences between federal student loan consolidation and refinancing:

Should you refinance your student loans?

Refinancing your debt — whether federal or private student loans — may save you money if you have high interest rates and a large monthly payment. However, it’s not always the best financial move, especially for borrowers with federal loans.

Refinancing a federal loan means converting it to a private lender. You'll lose valuable benefits and protections, such as income-based loan repayment plans, Public Service Loan Forgiveness and interest subsidies. And, the process cannot be reversed. For many federal borrowers, enrolling in an income-driven repayment plan will be a better option, as those plans can reduce your monthly payment and offer loan forgiveness on any balance left over after a certain number of years.

If you have a private student loan, there’s no real downside to refinancing to get better terms. But you will need a good credit score and stable income (or a creditworthy cosigner) to qualify for refinancing. When weighing whether it makes sense for you, remember that lenders’ lowest rates are reserved for borrowers with the strongest credit.

Pros and cons of student loan refinance

Consider the following advantages and disadvantages to determine if refinancing your student loan is the right choice:

What to consider when refinancing a student loan

Before refinancing your loans, consider the following:

Federal student loans

With federal student loans, refinancing can help you secure a lower interest rate and possibly reduce your monthly payment. But federal loan refinancing can be risky because your federal loans will be transferred to a private lender. As a result, you’ll no longer be eligible for borrower protections like federal income-driven repayment, Public Service Loan Forgiveness or Total and Permanent Disability Discharge.

Private student loans

When you refinance, the loans are switched to a new loan servicer. Private loan rates, policies and customer service varies by lender, so be careful about refinancing your loans.

Steps to refinance your student loans

Refinancing student loans can be an excellent way to save money or accelerate your repayment, and it's easier to do than you may think:

1. Check your credit

Student loan refinance lenders generally require borrowers to have good to excellent credit, meaning a score of 670 or higher, and to get the best student loan refinancing rates, you’ll need an even better score. Check your credit to see where you stand. If your credit is less-than-perfect or you have a high debt-to-income ratio, you may not even qualify for a loan unless you add a cosigner to your application.

Not all refinancing companies offer cosigner releases, so review the lender’s loan terms to see if a cosigner release is possible.

2. Consider the types of loans you have

If you have a mix of federal and private loans, remember that you don’t have to refinance all of your debt. Although you can refinance private student loans and federal loans, you can opt to only refinance your private loans or your loans with the highest rates.

3. Shop for the best rate

Each lender has its own credit and income requirements, so you may qualify for better rates with some lenders over others. Shop around and request quotes from multiple companies to find the best deal. Many lenders have tools that allow you to view prequalified rates without affecting your credit score.

Rates range based on your credit and loan term; the lowest rates are usually for the shorter repayment periods, such as five or seven years.

4. Research lender’s financial hardship relief options

Not all refinancing lenders offer financial relief programs if you lose your job or become ill. And not all lenders will discharge your loans in cases of death or permanent disability. Carefully review the lender’s forbearance, deferment and forgiveness policies so you know under what circumstances the lender will pause or forgive your loans.

5. Fill out your loan application

Student loan refinancing companies allow you to apply online. You’ll need to provide your current loan statements, student loan account numbers and employment information. You’ll also need to consent to a hard credit inquiry.

6. Sign your loan approval and start making monthly payments

Once you’re approved, the lender will send you a loan agreement to review and sign. After that, the lender will work with your current loan servicers to pay off your student loans. Continue making your usual monthly payments until you receive confirmation that your loans have been paid in full; otherwise, you risk late payment fees and damage to your credit report.

How to refinance student loans with bad credit

If you have poor credit or no credit history, you will need a cosigner with a high credit score and steady source of income to qualify for a loan. (Most lenders require a minimum credit score around 680, but your cosigner will need a very good or excellent score to qualify for the best rates) Some lenders will allow you to apply for a cosigner release if you meet its requirements and make a specific number of payments on time, but not all lenders offer that option.

If you don’t have a cosigner to apply with, you’ll have to improve your credit before applying to refinance.

How we chose the Best Student Loan Refinance Companies

Loan refinance selection

Some lenders didn’t make our cut because they didn’t offer a full range of refi options, such as for Parent PLUS student loans, which was a non-negotiable point in our criteria.

Payment options and fees

We favored companies with flexible payback policies, such as cosigner release and financial hardship relief options for qualified applicants. We also looked for financial institutions that offered refinance loans without charging origination fees or late fees. Additionally, we favored lenders who offered interest rate reductions for signing up for automatic student loan payments, or autopay programs.

Customer experience

When we researched each company on our shortlist, it was important for us to evaluate whether lenders had an inordinate number of complaints or any ongoing actions with regulatory agencies such as the Consumer Finance Protection Bureau.

Summary of Money’s Best Student Loan Refinance Companies of 2024

• RISLA – Best for Borrower Protections
• Credible - Best Student Loan Marketplace
• Earnest - Best for Flexible Repayment Terms
• MPOWER Financing – Best for International and DACA Students
• SoFi – Best for Member Benefits
• Laurel Road - Best for Medical Professionals

Andrea Agostini Ferrer and Gabriella Cruz-Martinez contributed to previous versions of this story.