Hanneh Bareham specializes in everything related to personal and student loans and helping you finance your next endeavor. She aims to help others reach their collegiate and financial goals through making loans easier to understand.
Hannah has been editing for Bankrate since late 2022. They aim to provide the most up-to-date information to help people navigate the complexities of loans and make the best financial decisions.
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Refinancing can save you time and money, but it's not always the best route for every borrower. Here are a few factors that everyone should consider before making the jump to refinance a student loan.
Rising interest rates
Rapidly rising rates should be a primary consideration when determining the best time to refinance. Due to sky-high inflation, the Federal Reserve has been hiking rates at a historic level in an attempt to cool the economy. When the Federal Reserve hikes rates, private student loans are impacted and lenders raise their minimum and maximum rates in response. While rates are higher than usual at this time, borrowers looking to refinance private loans shouldn't wait for them to drop. No one can be certain on how the Fed will respond to the economy, but it's predicted that rates will continue to rise.
If you've been thinking about refinancing your private loans for a while, now may be the time to do it. You'll lock in the lowest rate possible and can always refinance again in the future to score better terms. Just make sure you're applying for a fixed rate loan. Variable interest rates are subject to change based on the Fed and will likely only increase, while fixed rates don't change during the life of the loan.
Loan type
Borrowers who have high interest or variable-rate private student loans should consider refinancing as soon as possible due to the Federal Reserve raising interest rates in an attempt to combat inflation. Variable-rates fluctuate based on market activity, so it's best to lock in the lowest rate possible before another potential rate hike.
With student loan forgiveness currently in limbo, those with federal student loans should re-consider refinancing until after the payment pause expires or a decision is made on Biden's debt relief plan. Payments are set to resume no later than 60 days after June 30, 2023. Refinancing before this date will cause you to forfeit the remainder of the pause – and any potential extensions in the future – as private lenders only provide company-specific benefits to borrowers.
Federal loan benefits
Those who refinance their federal loans lose out on all of the federal benefits and repayment programs, including loan forgiveness. Before refinancing, it's best to take a step back and examine every federal option, as most private lenders don't offer nearly as many hardship or payment relief programs.
The U.S. Department of Education offers occupation and income-based forgiveness and repayment programs, like Public Service Loan Forgiveness and Income-Driven Repayment. Plus, borrowers can apply for financial hardship payment relief at any time. While most private lenders provide some relief programs, it's rare to see a company boast a portfolio of benefits comparable to the Education Department's offerings.
Long-term goals
If you have a mix of federal and private debt, assess your financial situation to determine whether refinancing is absolutely necessary before signing on the dotted line.
Consider your current financial situation, loan balance and the resumption of student loan payments to gain a holistic view of what your refinancing goals are. If you're looking to save money on interest charges, make sure to apply for a lender only if you're guaranteed a lower rate through prequalification.
If your credit is in good health but you're looking for a more manageable monthly payment, then refinancing may be your best bet if you don't qualify for any federal programs.
What refinancing could mean for you
Student loan refinancing can be a big help to your finances, but only in the right situation.
Here's what refinancing could look like if you:
If you only have private student loans with high interest rates, then refinancing could save you a significant amount of money over time and would simplify your monthly payment. However, you must first qualify for a better rate and therefore, be in good financial standing with a good to excellent credit score.
If you only have federal student debt, it'll likely be a good idea to look into consolidating your loans into a federal Direct loan before refinancing with a private lender. You can only consolidate federal student loans into a Direct loan and end up saving money in interest depending on your credit.
If you don't end up with more favorable terms, then consider refinancing. Just keep in mind that consolidation allows you to remain eligible for federal benefits.
Most borrowers choose to refinance a mix of federal and private loans. For eligible borrowers, it saves money by setting one, uniform rate. It also simplifies repayment by consolidating the multiple payments into one, monthly payment.
However, borrowers with federal loans will likely want to hold off on refinancing until official news is released from the Biden administration regarding forgiveness or payments resuming.
If you want to refinance right now, it doesn't make sense to pull the trigger unless you can ensure the new loan has better terms and a lower interest rate. Due to the rates, skip over a lender if it doesn't offer prequalification. It's likely that you'll end up with a higher rate unless your current interest is extremely high.
Most lenders have strict income approval requirements; most set an annual minimum of around $30,000. Those who don't have a predictable or sufficient income likely won't get approved without the help of a co-signer. While there are lenders that cater to those with a low-income, they typically have higher rates, so check the interest ranges before applying.
A co-signer is someone who takes on legal responsibility for the loan and signs the contract as well. If you miss a payment, the co-signer must pay and their credit could be negatively affected, so it's important that all parties involved are aware of the potential consequences of co-signing.
International students can have a harder time qualifying for a refinance loan than those studying domestically. Most lenders that cater to international students require a co-signer in strong financial health.
Your eligibility may also depend on your program of study and status. Some lenders won't accept students unless they've graduated and may disclude specific certification or degree programs. Check the lender's website to make sure you meet the requirements prior to applying.
Most lenders don't allow current students to refinance their student loans before graduating. Some may accept those who are close to graduating and have already accepted a job with a set salary, but it's not likely that every lender has that leniency.
See how much you could save with refinancing
A student loan refinance calculator can help you parse through lenders to find the offer that'll save you the most money. After pre qualifying, you can enter in the predicted loan details and compare them with your current details to see how your new monthly payment, interest costs and repayment timeline could change.
How to refinance your loans with Bankrate in 3 steps
1.Shop around
Shop around and explore multiple lenders to find the company that best suits your needs. Look specifically at the requirements, APR ranges and repayment terms.
Most lenders require good credit and a steady income to qualify for the best rates. Consider using a co-signer to get better rates and improve your approval odds.
2.Prequalify and compare offers
Prequalify for as many lenders as possible to find the most competitive rates for your situation.
Prequalifying won't impact your credit score and allows you to see your predicted rates and approval odds. It likely won't be worth applying if the lender does't offer prequalification.
3.Lock in the better terms
After finding the lender with the best rates and benefits, lock in your predicted offer and apply on its website. If approved, the lender will contact you with further details.
Have all of the personal and financial documents listed on the lender's website on-hand to ensure a smooth application process.
Ready to compare student loan refinancing options?
Comparing options and lenders can be an overwhelming process, as many companies offer similar services. It's best to focus on the details listed in the company's terms and conditions to factor in any hidden fees and rate increases.
Thankfully, there are resources available that do all of the hard work for you by listing out all the lender details; all you need to do is apply. Use our resource below to sift through the best lenders and find the company that'll help you reach your long-and short-term financial goals.
The listings that appear on this page are from companies from which this
website receives compensation, which may impact how, where and in what
order products appear. This table does not include all companies or all
available products. Bankrate does not endorse or recommend any companies.
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Answer a few questions in two minutes or less to see which student loans you pre-qualify for. It's free and will not impact your credit score.
The Bankrate scoring system evaluates lenders' affordability, availability and customer experience based on 11 data points selected by our editorial team.
An annual percentage rate (APR) represents the interest and fees you'll pay on top of your initial amount every month. A fixed rate will not change during your repayment period.
The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan.
The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated.
4.0
Bankrate Score
Fixed APR From
4.47-
8.99%
with AutoPay
Loan Amount
$25k-
$500k
Term: 5-25 yr
Min. Credit
660
Low rates for loans over $5000
No Maximum loan amount
See your rates in 3 minutes without affecting your credit score
No application or origination fees and no prepayment penalties
Friendly customer service available via phone, email, and live chat
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are subject to change at any point prior to application submission. Your prequalified rate is based on information you provided. All final offers require verified credit information which could impact your qualified rate. The information you provide to us is an inquiry to determine whether we or Splash’s lending partners can make you a loan offer. Some lending partners may require less information if you submit an application directly on their website. If Splash, or any of our lending partners, has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. Please be advised that a lending partner who has an available loan offer for you may conduct another soft credit pull as part of its application review process. To qualify, a borrower must be a U.S. citizen or other eligible status and meet lender underwriting requirements. A co-signer may be required. The borrower is required to meet applicable underwriting requirements based on specific lender criteria. Not all borrowers receive the lowest rate as advertised. Lowest rates are reserved for the highest qualified borrowers. Splash does not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Variable rates subject to change. If you are interested in refinancing your student loans, please note the following: Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal student loans carry special benefits. If you refinance a federal student loan with Splash Financial, you will no longer be eligible for those benefits such as a COVID-19 temporary interest rate of 0% through 08/31/2022, public service loan forgiveness, and economic hardship programs, fee waivers and rebates on the principal. Fixed Rate options range from 4.39% (with autopay) to 8.99% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Rates are subject to change without notice. Not all rates and amounts available in all states. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Variable rate options range from 2.50% (with autopay) to 8.99% (without autopay). Our lowest rate option is shown with a 0.25% autopay discount. The variable rates are based on a Variable rate index. Some of the rates are based on the one-month London Interbank Offered Rate (“LIBOR”) and some are derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). The interest rate on a variable rate loan is comprised of an index and margin added together.
Apply on partner site
4.1
Bankrate Score
Fixed APR From
3.99-
11.87%
with AutoPay
Loan Amount
$5k-
$500k
Term: 5-20 yr
Min. Credit
660
Compare real, pre-qualified rates from up to 10 lenders in under 2 minutes
No hidden fees, origination fees or prepayment penalties
Checking your rates won't affect your credit score
Variable rates will fluctuate over the term of the borrower's loan with changes in the LIBOR rate. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
Apply on partner site
4.0
Bankrate Score
Fixed APR From
4.49-
10.68%
with AutoPay
Loan Amount
$5k-
$300k
Term: 5-20 yr
Min. Credit
660
2-Minute rate check with no impact on your credit score
No origination fees or prepayment penalties
Network of 300+ community lenders means higher chances for approval and lower rates
Available for private and federal, undergraduate and grad school student loans
0.25% Interest Rate Reduction with automatic payments
One of the largest unemployment protection offers in the market; up to 18 months
Cosigner release available after 12 monthly payments
Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile, and it may be based on your credit score, level of degree earned, and the availability and credit score of a cosigner applicant. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Variable rates may increase after consummation. Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if your meet the lender's eligibility criteria. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Apply on partner site
4.5
Bankrate Score
Fixed APR From
4.47-
8.99%
with AutoPay
Loan Amount
$5k-
$500k
Term: 5-20 yr
Min. Credit
680
Lower rates based on your future potential and full financial profile, not just your FICO score
Flexible terms that let you pick your exact monthly payment
Lifetime service provided in-house. Unlike other lenders, we will never pass you off to third-party servicers
No fees for origination, prepayment, or loan disbursement
Two-minute rate check with no obligation at www.earnest.com
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.72% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 4.39% APR to 9.19% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Apply on partner site
Fixed APR From
4.39-
8.99%
with AutoPay
Loan Amount
$5k-
$500k
Term: 5-20 yr
Min. Credit
680
You can refinance without a degree
Three minutes to get your rate with our quick and easy online application
No fees, including no application, prepayment, or late fees1
Customize loan terms, from 5 to 20 years to fit your budget and financial goals
Student or Parent PLUS Loan refinancing available
You can choose between fixed and variable rates. Fixed interest rates are 4.64% - 9.24% APR (4.39% - 8.99% APR with Auto Pay discount). Starting variable interest rates are4.24% - 8.54% APR (3.99% - 8.29% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
Apply on partner site
4.0
Bankrate Score
Fixed APR From
5.39-
11.87%
with AutoPay
Loan Amount
$10k-
$750k
Term: 5-20 yr
Min. Credit
620
You can see if you'll qualify and what rate you'll get without a hard credit check
You can refinance Federal PLUS Loans in your name
Loyalty discount: Borrowers with a Citizens account when they apply get an additional 0.25% interest rate discount
Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of January 1, 2023, the 30-day average SOFR index is 4.01%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
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4.2
Bankrate Score
Fixed APR From
4.83-
7.64%
Loan Amount
$10k-
$500k
Term: 5-20 yr
Min. Credit
680
Prequalify to estimate rate without affecting your credit score
Submit online application in minutes
No application fees, origination fees, and prepayment penalty
Flexible repayment terms to fit your needs and goals
Student Loan Advisor to guide you through the application process
Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 06-24-2022. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner's (if any) financial history. See Eligibility Requirements for more information. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.