With the SAVE program ending and major changes for federal student loan borrowers this year, now could be a good time to review your repayment plan — which may also include refinancing.
Refinancing your student loans can help you score a lower interest rate or consolidate multiple monthly payments into one. But if you’re refinancing federal student loans, you could also lose some valuable protections and forgiveness opportunities.
The first step is finding a student loan refinance lender that works with your budget and timeline. To help you get started, here are some top options today.
Read more: How to refinance your student loans
Best lenders to refinance student loans
SoFi: Best overall
Our take: SoFi is an all-around solid lender for refinancing your student loans. It offers a standard $5,000 minimum loan amount and loan terms between five and 20 years. It also has no loan limit, which is rare among the lenders we compared, and you can defer your payments if you return to school.
Compared to other lenders, SoFi has a pretty speedy funding process. After your new loan is finalized, SoFi will send the payment to your previous loan servicer in about 7-15 business days. Then, your first payment on the refinanced loan will be due in another 25-30 days.
Refinance loan amount: $5,000 minimum up to your full loan balance
Repayment terms: 5-20 year fixed and variable rate terms
Eligibility: There’s no degree requirement to refinance with SoFi. You can apply with a co-signer, but you cannot release your co-signer unless you refinance your loan again on your own. SoFi will refinance Parent PLUS loans and allow you to refinance and transfer parent loans to the student.
Prequalification: Yes
Origination or application fee: None
Learn more about SoFi’s refinance options
College Ave: Best for simplicity
Our take: College Ave offers a lot of the features we look for from student loan refinance lenders. The minimum loan amount starts at $5,000, and you can choose your repayment term, as long as it’s any amount of time between five and 20 years. You can expect your previous loan servicer to receive payment within three to four weeks of finalizing your new loan.
There are some downsides to consider, though. College Ave’s lowest rates are slightly higher than some other lenders on our list, and though most borrowers won’t meet the loan maximum, you should be aware of it if you’ve accrued a high balance. College Ave also doesn’t offer much information about deferment or forbearance, but it does encourage customers to reach out for individual options when they cannot make monthly payments.
Refinance loan amount: $5,000 minimum; maximum up to $500,000 for select professional degrees, $300,000 for graduate degrees, and $150,000 for other degrees
Repayment terms: Any term between 5-20 years; fixed and variable rates
Eligibility: You must have graduated from an eligible program to qualify to refinance with College Ave. You can apply with a co-signer and release them after meeting certain criteria.
Prequalification: Yes
Origination or application fee: None
Learn more about College Ave’s refinance options
Earnest: Best for payment flexibility
Our take: Earnest is our top pick for payment flexibility after refinancing. Not only does the lender offer deferment, forbearance, and interest-only payment options, but it also allows you to skip a payment once every year if you request it. Your loan will remain in good standing, but interest will continue to accrue on your balance. This option starts after six months of consecutive, on-time payments in full.
Earnest offers a minimum $5,000 loan amount with a very high maximum of $550,000, and you can customize your term length (with approval) between five and 20 years. After your loan is finalized, Earnest says your previous servicer will receive the funds within 10 USPS days — though it may take longer to apply to your balance.
Refinance loan amount: $5,000 minimum up to $550,000
Repayment terms: 5-20 year fixed and variable rate terms
Eligibility: You must have graduated from your degree program to refinance with Earnest, though you may be approved if you graduate this semester. You’ll also need a credit score of at least 650. You can apply with a co-signer, but you will need to refinance again on your own to remove them. Earnest will refinance Parent PLUS loans, but only for parents — meaning you cannot transfer the refinanced loan to the student.
Prequalification: Yes
Origination or application fee: None
Learn more about Earnest’s refinance options
ELFI: Best for potential low rates
Our take: ELFI’s advertised rates are competitive for both fixed and variable refinanced student loans — but remember that the rate you’re approved for depends on your individual application and credit.
According to ELFI, it will take about 30-45 days for your previous loan servicer to receive the full payment and apply it to your old account. Your new loan repayment term can range from five to 20 years, and if you have difficulty making your payments, you can contact ELFI and may qualify for up to 12 months of forbearance.
One big downside of this lender is the high $10,000 minimum loan amount; most refinance lenders have a much lower $5,000 minimum.
Refinance loan amount: $10,000 minimum, maximum varies
Repayment terms: 5-20 year fixed and variable rate terms
Eligibility: You must have graduated from a bachelor’s program or higher to refinance your student loans with ELFI. You’ll also need a credit score of at least 680 and a minimum income of $35,000, though you can apply with a co-signer. If you want to release your co-signer later, you’ll need to refinance again. You can refinance Parent PLUS loans.
Prequalification: Yes
Origination or application fee: None
Learn more about ELFI’s refinance options
Citizens Bank: Best for loyalty program
Our take: Citizens Bank offers solid interest rates for students and parents to refinance their student loans. If you already bank with Citizens, you can save even more on your refinance. You’ll get a 0.50% rate reduction if you qualify for both the loyalty discount and the automatic payment discount.
Citizens does have a steep minimum loan amount of $10,000, which is higher than some other lenders on our list. Once you agree to the new loan, principal and interest payments will begin within 21 to 50 days.
Refinance loan amount: $10,000 minimum; maximum up to $750,000 for professional degrees, $500,000 for graduate degrees, and $300,000 for bachelor’s degrees
Repayment terms: 5-20 year fixed and variable rate terms
Eligibility: You must have completed a bachelor’s degree or higher to be eligible to refinance your student loans. Citizens says it also generally looks for a “reasonably strong” credit history and income of at least $24,000. You can apply with a co-signer and later apply for co-signer release after meeting credit and eligibility requirements, and you can refinance Parent PLUS loans.
Prequalification: Yes
Origination or application fee: None
Learn more about Citizens Bank’s refinance options
Should you refinance federal student loans?
Refinancing your student loans can help you save money, but it also carries some risk — especially if you have federal student loans.
For one, federal student loans already carry relatively low interest rates. Unless you have excellent credit and a strong credit history, you may not qualify for a lower refinance rate than you already have.
Forbearance and deferment options are another factor to consider. Federal student loans generally offer options to pause your loan payments during periods of financial hardship, serious illness or disability, re-enrollment in school, and more. Before you refinance, research opportunities for forbearance and deferment with your new lender.
You might also have more flexibility with federal loan payments. Many refinanced student loans offer only standard repayment plans over a set loan term. But federal student loan borrowers can choose income-driven repayment options (even after the July 1 student loan changes), potentially resulting in lower monthly payments.
Finally, consider whether you may qualify for any federal loan forgiveness programs. Teacher Loan Forgiveness and Public Service Loan Forgiveness (PSLF) for government and nonprofit workers can help reduce the overall amount you pay toward your loans if you qualify to have them discharged after a certain number of years. You’ll give up this benefit if you switch to a private lender.
Read more: Should you refinance your student loans?
Benefits of refinancing your student loans
The main reason many borrowers refinance their student loans is to qualify for a lower interest rate. Some refinance lenders today offer lower rates than current federal student loan rates for borrowers with the best credit scores. You can usually prequalify for a refinance loan to see estimates of the rates and terms you may qualify for.
Refinancing for a lower rate can be especially beneficial for private student loan borrowers. If you have a better credit history or higher income than when you first applied for your student loan, you may save a significant amount throughout the repayment term with a lower interest rate.
Another big benefit is loan consolidation. When you attend school for multiple years or pursue multiple degrees, individual loans can quickly add up. Refinancing can consolidate those loans into one, so you only have to worry about making one payment to a single lender each month.
You can also choose to refinance only some of your loans. If you have some loans with a very low interest rate already, you may want to keep those while refinancing your high-rate loans.
What to look for when refinancing your student loans
Here are some details to keep in mind when you’re looking to refinance your student loans:
Fixed vs. variable APR: Just like private student loans, you can often choose to refinance your student loan at a fixed or variable rate. If you choose a fixed rate, your interest rate will remain the same throughout the life of the loan. Variable interest rates, however, can fluctuate over time, which will also change your monthly payment amount.
Qualifications: Lenders require you to meet specific qualifications to refinance. This might include completing the degree for which you took out your initial loans, having a fair credit score, meeting a minimum annual income requirement, and more. Make sure you read your lender’s full list of qualifications before you apply.
Loan terms: It’s common to find refinanced student loan terms between five and 20 years. The loan term you’re approved for is important because it also determines your monthly payment amount. If you want to pay down your loan as soon as possible, a shorter loan term can help — but you’ll also have a higher monthly payment.
Autopay discount: Most refinanced student loan lenders offer a discount (usually 0.25%) for setting your monthly payments to autopay. If you have a regular income and can ensure you have your monthly payment amount in your checking or savings account each month, this could be a good way to gain some additional savings on your loan.
Minimum loan amount: Lenders often require a minimum loan amount for refinancing. In many cases, you must have at least $5,000 in student loans to refinance, but some lenders require even more. If you have already paid a majority of your student loans off or you didn’t borrow a large amount for your education, refinancing may not be the best option.
Funding process: After you apply and get approved for a refinanced student loan, it can take time for your new lender to pay off the old loan and for the payment to process. Make sure you continue to pay your old loan until you’re notified by your new lender that the loan has been paid in full. Also, look for communication from your new lender about when exactly your first payment is due and how to pay.
Methodology
Our list of the best student loan refinance lenders prioritizes lenders with straightforward terms, strong borrower protections, and flexibility.
We reviewed several private lenders that offer refinancing for student loans today. These lenders were scored across nine key categories using data gathered from lender websites, loan agreements, and third-party review platforms, including Trustpilot and the Better Business Bureau.
Each of the student loan lenders on our list offers competitive rates compared to federal student loan rates and a range of loan terms. The specific criteria each lender was rated on include APRs (and how they compare to federal student loan rates), fee-free loans, loan term length, hardship and forbearance options, eligibility requirements, the refinancing funding process, minimum loan amounts, and more.
Top-rated lenders that make up the list above include those that are well-reviewed by customers, allow borrowers to choose between multiple term lengths, have protections for financial hardship, have clearly outlined eligibility requirements, and generally offer flexibility for borrowers over the entire repayment period.
