Skip to Main Content

Requirements for student loan refinancing

Couple signs loan documents
Jacob Lund/Shutterstock
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Refinancing your student loans — in other words, taking out a new student loan to pay off your existing loans — is one way to save money or get a different repayment term. Sometimes you can refinance with your current lender, but many times you’ll get a new one. Whatever the case, you’ll have to meet a lender’s minimum refinancing requirements, which could include a high credit score, a low debt-to-income ratio and a stable income.

Requirements for student loan refinancing

Eligibility requirements for student loan refinancing vary by lender, but many have the same general qualifications.

A solid credit score

Your credit score and history are some of the biggest influences in your eligibility for student loan refinancing. If you have little to no credit history to your name, some lenders might not be willing to take a chance. The ones that do might give you a higher interest rate, since the best rates go to borrowers with high credit scores. In general, aim to have a credit score in the mid-600s to qualify and one above 700 to get the lowest rates.

Stable income

If you’re currently out of work, lenders may assume that you don’t have the cash on hand to make payments on your bills. Many lenders require proof of employment and income when you apply for refinancing.

Decent debt-to-income ratio

Your debt-to-income ratio (DTI) is the percent of your income that’s taken up by bills and necessary expenses. The lower your DTI, the more enticing you look to potential lenders, since it means that you have more cash freed up to stay current on your payments.

Lenders might be more cautious if you have a high DTI. Try to keep your DTI to less than 50 percent, and pay off as much debt as you can right before you apply for your loan.

Minimum refinancing amount

Every lender has a different minimum amount you can refinance. For the most part, lenders require at least $5,000 in student loans to get refinanced. Some have a maximum — like $300,000 — but many don’t have one.

A degree

Many lenders have requirements for how much schooling you’ve completed in order to refinance your loans. A number of them require you to hold a degree in order to be eligible for student loan refinancing, although some may be more lenient with these requirements.

Other documents you’ll need to prepare

If you’ve done your homework and found the lender with the lowest interest rate, fewest fees and best repayment terms for your budget, it’s time to get your paperwork in order. Here’s what you’ll need for your application:

  • Proof of employment: A recent pay stub, a W-2 or your tax returns.
  • Government-issued ID: A license, passport or ID card.
  • Proof of degree: A transcript or diploma. May not be required with all lenders.
  • Proof of residency: A document confirming where you live.
  • Loan documents: Recent loan statements detailing your account and payoff information.

If you have a co-signer, they’ll need these corresponding documents as well.

While your credit score and history will get pulled once you complete a full application, you might be able to see if you’re prequalified with a lender by inputting your credit information. With this basic information, the lender can give you an estimate of whether you’re qualified and what rates you might be offered.

After you’ve finished your application, your lender will run a credit check. If you’re approved, you’ll sign formal paperwork. This usually consists of giving the lender permission to pay off your current loans for you, with you agreeing to your new loan terms, interest rate and monthly payment.

Next steps

If you’ve decided that refinancing is the right move for your student loans, take steps to prepare for your application.

  1. Check your credit reports and scores. allows you to access all three of your credit reports once a year. Checking your reports is the only way to ensure that they are free of errors. Once you have an idea of the shape of your credit, you’ll have a better sense of which lenders are likely to approve you.
  2. Pay down debt. Where possible, eliminate as much debt as you can before you apply for your refinancing loan. Lowering your credit card balances could raise your credit score and boost your eligibility with lenders.
  3. Compare lenders. Get prequalified with a few lenders before making your decision; seeing your potential rates and terms is the only way to see which loan is best for your individual situation. One lender may advertise low rates, but it may have stricter requirements for getting those rates.
  4. Send in an application. When you formally apply with a lender, you’ll be subject to a hard credit check. However, in most cases, you could receive funds within a few weeks.
  5. Consider alternatives. If you don’t qualify for refinancing, or if you’d like to explore other methods of managing your student loans, you have options. If you have a federal student loan, income-driven repayment plans or a Direct Consolidation Loan could be the right choice. If you have private loans, you could negotiate deferment or forbearance to temporarily reduce your monthly payments.

Learn more:

Written by
Dori Zinn
Contributing writer
Dori Zinn has been a personal finance journalist for more than a decade. Aside from her work for Bankrate, her bylines have appeared on CNET, Yahoo Finance, MSN Money, Wirecutter, Quartz, Inc. and more. She loves helping people learn about money, specializing in topics like investing, real estate, borrowing money and financial literacy.
Edited by
Student loans editor