Best Student Loan Refinance Companies

Unless you’re waiting for federal student loan forgiveness, if you have fair to good credit and a stable income, refinancing all your student loans for a new, lower interest rate private loan is a good idea. Not lowering your interest rate by refinancing means paying more for the student loan over its life. Refinance online so you can compare lenders, pre-qualify without a hard credit inquiry, get faster approval, and compare old servicer payoff times. Our team of financial experts reviewed and ranked over 30 online lenders to help you refinance your student loans.

Best Refinancing Options for Student Loans - Full Overview

Now that you know what factors to examine when searching for the best student loan refinancing companies for your needs, below, we summarize 10 options to consider. 

How to Choose the Best Student Loan Refinancing Options

To find the best student loan refinance companies, use these factors developed based on our ranking methodology to evaluate each lender. Make sure lenders are transparent about all these features and offer everything they advertise. Also apply these criteria to lenders you get matched with through student loan refinancing aggregators before accepting offers through them. Realize you’re turning federal loans that you refinance into private loans, and you’ll lose federal protections for borrowers. But some lenders here provide similar protections.

• Loan Features - Make certain the loan lengths or terms fit your criteria. See if loan amounts cover all your student loan debt. Be sure there aren’t loan use limitations, like for-profit school loan ineligibility or exclusion for eligibility if you didn’t graduate. Read the terms and conditions carefully, including the fine print.
• Interest rates and fees - Know what the minimum and maximum interest rates are, particularly if you’re considering a variable rate loan. Interest rates you’ll get are based on your FICO® score and credit history. The higher interest and fees are, the more you’ll pay over your loan’s life. Learn whether the lender charges any fees, and if so, what type, how they’re charged and when.
• Application process - Determine if the application process requires information you're hesitant to provide. Also, most lenders here allow you to pre-qualify with a soft inquiry that doesn't affect your credit score. But, for full loan approval, they’ll do a hard inquiry, which affects your credit. Know how long the process from application to payoff of old services takes in your situation.
• Qualification process - Know if you'll need a cosigner before you apply if you don't meet minimum credit score and income requirements. Then, make sure co-signers and co-applicants are options for your desired lenders. Also, learn what the membership requirements are, if you apply through a credit union, for example.
• Customer support -  Does the lender offer customer support options that fit your needs? If you like chat over phone support, is that available? Check customer service hours and phone number for live customer service accessibility. See if the lender’s site is easy to use and information is easy to find. Look for financial literacy and other educational content you need.
• Online user reviews - Research each loan provider's online reviews, including Trustpilot, BBB and social media, for clues about all the areas covered here. Review customer experience content online and look for customer support on social media, too.
• Perks and Bonuses - Are lenders offering enticements for applying or refinancing with them? For example, will you get payment flexibility, forbearance options, “no surprises” lending and advanced technology like apps?

Best Options for Student Loan Refinancing - Feature Comparison

Here’s an overview of how all the providers reviewed compare.

Should I Refinance My Student Loans?

If you want all your student debt—both federal and private loans placed into one private loan, possibly at a lower interest rate with lower monthly payments and longer to repay, then consider refinancing. Ask yourself these four questions in the process.

• Do I meet the requirements for student loan refinancing? 
  Qualified borrowers have a stable, verifiable income, a fair to good credit score, a low debt-to-income (DTI) ratio, and a strong payment history with few to no negative items on their credit report. 
• Can I save money by refinancing my student loans? 
  In most cases, especially if you have high interest rate private loan debt, you can save money in interest over the life of your student loans. Refinancing into a no-fee loan also might save you money.
• Will I Lose Benefits If I Refinance My Student Loans? 
  Refinancing federal student loans into private lender debt means a potential loss of benefits like one-time student loan cancellation by the Biden administration and CARES Act payment suspension and 0% interest. It also means forfeiting the standard protections you get with federal student loans, including in school deferment, forbearance up to three years, income-driven repayment plans, Public Service Loan Forgiveness and Teacher Loan Forgiveness.
• Do I have student loan debt I can’t refinance? 
  Many lenders will not refinance student loans taken out to attend for-profit schools and programs. Also, despite the Consumer FinanceProtection Bureau designating these as credit products,or a form of student debt, income share agreements (ISAs) can’t be refinanced.  

When to Refinance Student Loans 

You’re not waiting for one-time loan cancellation from the Biden administration, don’t qualify for other loan forgiveness programs, and can forgo other federal student loan debt protections. If you have high interest federal student loan and private loan debt, refinance now before interest rates rise again. Also, parents who took out student debt for their children should refinance or transfer to their children any high interest Parent PLUS or private loans while interest rates are where they are. Refinancing also benefits you if you want to repay your loans aggressively, because you have more control over them with the right refinancing lender. Conversely, because refinancing may get you lower monthly payments and more time to pay off student loan debt, potentially freeing money up for other uses.

When Refinancing Your Student Loans Is a Bad Idea

There are situations when refinancing student loans is not a good idea. When you don’t have a stable income, and may need loan forbearance, don’t refinance your federal student loans. Remember, too, most private loans don’t offer in-school or active-duty military deferral and when you refinance student debt, your federal loans become private ones. You’re required to make monthly payments on those like any other private personal debt. Don’t refinance federal loans If there’s a chance you’re eligible for any loan forgiveness (beyond Biden’s loan cancellation proposal). Finally, if you’re almost done paying your loans or have a relatively low interest rate already, it’s a poor idea to refinance your student loans.

How Do You Refinance Student Loans?

Here’s the process for refinancing your student loans. Since every situation is different, you may need to adjust these elements to your circumstances.

• Check your credit: You’ll want to make sure you have a qualifying credit score, have a clean credit report, and do whatever is necessary to improve your credit. That includes getting mistakes removed from your credit report, paying down your current personal loans and credit cards, and dealing with negative credit items.
• Shortlist lenders: Research student loan refinancing companies carefully based on your personal circumstances and choose several that will meet your specific needs. Look for those with the best student loan refinance rates and loan terms. Determine if they charge any fee or prepayment penalties, and if they offer perks for refinancing your student debt with them. Create a short list of the best four or five for you. 
• Check your rate: Choose lenders that allow you to check your rate without a hard credit inquiry, but get prepared for them when you formally apply for loans. Set aside the ones that meet the requirements you established for refinancing with them.
• Choose your lender: Next, it’s time to apply formally to the two or three lender finalists you’ve selected. When the one with the best overall combination of features you need approves your loan, read their loan documents carefully before you sign them. Get old servicers repaid and begin repaying your refinanced loans.

Tips for Managing Your Student Loan Debt

Here are strategies for managing your student loan debt whether or not you refinance your student loans.

• Know what you owe: Calculate how much you own and to whom and be informed of your repayment terms.
• Calendar payments: Put the dates and amounts you owe on a calendar to pay them on time. Know their grace periods in case you forget to pay or can’t.
• Keep documents organized: Arrange paperwork in folders, either paper or electronic, and be able to find and review them as necessary.
• Pay off higher interest loans first: Reduce the amount you’ll pay over the life of your loans by aggressively paying off the highest cost debt first. Make additional payments or larger ones to the highest rate debt. Then pay off the next highest, then the next until your debt is paid.
• Focus on the principal: Pay extra principal on your loans monthly. If you’re getting the most expensive debt paid first, target its principal for repayment.
• Autopay student loans: Many lenders offer a discount for making automatic payments. Take advantage of that by setting up autopay.
• Consider alternative payment plans: With federal student loans, you can call your servicer and set up income-driven payment plans, especially if you’re struggling. They include pay as you earn, graduated payment, income contingent payment, and extended repayment.
• Request deferment or forbearance: If you’re still returning to or in school, request an in-school deferment for your lender. Forbearance may be necessary if you’re experiencing financial difficulty, and it’s a protection for federal student loans. Request it and see if private lenders will offer that help.
• Determine loan forgiveness eligibility: There are multiple programs offered for federal student loan borrowers. Research those for which you may qualify.
• Investigate refinancing: Often, you may have more flexibility in repayment when you refinance your school debt. You also may get lower interest rates, smaller payments and more time to repay debt. All can help you financially.

Conclusion

Many Americans juggle hefty student loan debt alongside other financial obligations, and it may prevent some from achieving personal goals like home buying, marriage or family. Refinancing student debt to gain better control over your finances can take significant time and effort. But it also can be worthwhile and substantially improve your financial picture. You must carefully consider each aspect of the process to not only get the best interest rates and repayment terms, but to make sure the terms and conditions of your agreement benefit you most. By applying the strategies here, you might get the best student loan refinancing options.