Refinancing Student Loans: 12 Loan Refinancing Companies Compared
Refinancing Student Loans: You move the current federal and/or private student loans to a private lender mainly for lower interest rates when you refinance student loans (some borrowers often try lower payments or fewer lenders to deal with).
The article has all you need to have a 99 percent chance to find the perfect refinancing plan for student loans.
Should I Refinance Student Loans? Here are 2 Rules of Thumb
- For your federal student loans, refinance if you work in the private sector, have a solid emergency fund, and owe federal debt less than 1.5 times your income
- For your private student loans, shop for new interest rates and refinance at least once a year if you can find a lower rate. Most borrowers do not know that you can refinance two, three, or even four or more times and get multiple cash bonuses by changing lenders if a company on this page will offer you a better deal than what you currently have.
Refinancing federal student loans removes income-driven interest, redemption, and the most generous forbearance choices, please be aware. You need to be sure that before refinancing, these provisions are not as important as getting a lower interest rate. You can’t undo it after you’ve refinanced.
How to Compare the Best Student Loan Refinance Companies
Our research shows that only 10% of borrowers are going to check more than three lenders. That’s why we built the table at the top of the page so that you can focus your quest on companies that are less likely to waste your time. Nevertheless, if you want to be sure that you get the best deal, check out all 12 companies listed below.
Some companies offer rates directly, such as Earnest, Commonbond, and Laurel Road. Some, such as Credible and LendKey, link you to a huge number of lenders listed on their websites that you would probably never search on your own.
What Are the Current Student Loan Refinancing Interest Rates?
These are examples of interest rates I’m seeing based on different credit scores in the national student loan refinancing market in 2019 (excluding regional lenders).
If you have an interest rate higher than those in the table, you need to get quotes from the lenders below.
| Refinancing Fixed Rates Available (in years) |
Excellent Credit (750+) |
Good Credit (700-750) |
Average Credit (650+) |
|---|---|---|---|
| 5 | 3.20% | 3.60% | 4.00% |
| 7 | 3.50% | 4.00% | 4.25% |
| 10 | 3.75% | 4.25% | 4.75% |
| 15 | 4.35% | 4.60% | 5.00% |
| 20 | 4.60% | 5.00% | 5.50% |
All 12 Student Loan Refinancing Companies Compared
Comparing the following 12 lenders will make it easier to get a lower rate. We highlight the top reasons you’d consider using each lender, the available cash reward terms (some are unique to the refinanced amount), lender-specific reviews if you’d like to know more, as well as a star rating which represents input from our readers.
SoFi: Best if you want to invest and save at the same company where you refinance
- Positives: Competitive rates, member benefits, and unemployment protection
- Allows cosigners: Yes. No cosigner release offered.
- Deferment or forbearance available: Yes in limited situations.
- Interest rates: Fixed APR starting at 3.46%. Variable APR starting at 2.31%.
- Bonus: $100 to $750 depending on amount refinanced (offered through Credible)
SoFi was one of the first companies to offer student loan refinancing. Borrowers in the medical, dental, and legal fields should check their rates. Additionally, SoFi offers residency and fellowship refinancing.
Brazos: Best if you want to check non-profit borrowers in Texas
- Positives: 40 years of experience, nonprofit status.
- Allows cosigners: Yes, but no cosigner release.
- Deferment or forbearance available: Yes. Up to 12 months total
- Interest rates: Fixed APR starting at 3.10%. Variable APR starting at 1.90%.
- Bonus: $600 for refinancing at least $20,000
Brazos is a nonprofit lender only available to residents of Texas looking to refinance less than $250,000. The website requires patience to apply.
LendKey: Best search for community banks and credit unions
- Positives: Compares many smaller lenders you might not apply to
- Allows cosigners: Yes
- Deferment or forbearance available: Yes
- Interest rates: Fixed APR starting at 3.49%. Variable APR starting at 2.01%.
- Bonus: $100 to $750, depending on amount refinanced
LendKey searches community banks and credit unions and offers some of the strongest unemployment protection terms. Historically, they haven’t been as competitive for borrowers who owe over $200,000 but remain an excellent option if you owe less than that.
