Refinance Your Student Loan: Check Best Rate and Terms

Do you plan to refinance your student loan? It's actually a better way to manage your debt. You can save money by replacing existing education debt, with a new lower-cost loan through a private lender. You will have to liaise with a private lender to take out a loan for your existing debt, this can help you lower your interest rate, reduce your monthly payment, or even pay off your loans early.

Student loan refinancing can be a great way to save money and quicken your debt repayment. From our list of private lenders, you can choose a lender that suits your demand. Where there's no one perfect lender for everyone, because of their different rates, loan terms, etc., you can take a quick evaluation in "2 minutes" and get rate quotes from multiple lenders so as to get the best deal to refinance your loans. 

These loan refinancing companies have different things to offer which distinguish one from another. Some are marketplaces where you can compare lenders and rates and others have competitive interest rates.

Tips on How to Choose the Best Student Loan Refinance Company

Interest rates: Check and compare rates from different companies and know if they are fixed or variable rates. Basically, if you or your co-signer have a high credit score, you will qualify for a lower rate. 

Loan requirements: You have to check whether you need a certain FICO score (Fair Isaac cooperation) or credit score to qualify? Know if there are other qualifications or restrictions such as age limit, minimum income, or a particular type of degree program.

Loan terms: In a general sense, student loan terms range from 5 to 20 years. Although, some companies cut off term limits at 15 years. Consider how long the loan term is and ensure it is within your reach to make payments on time. 

Customer service: You will have to check on how the customer service is accessed because there are specific questions that can't be attended to on the websites. know whether it's through email, online chat, or phone.

• Loan terms: 5 - 25 years
• Fixed APR range: 4.49% - 8%
• Variable APR range: 5.92% - 8.65%

• Loan terms: 5 - 20 years
• Fixed APR range: 4.39% - 8.99% 
• Variable APR range: 3.99% - 8.29%

• Loan terms: 5,7,10,15 - 20 years
• Fixed APR range: 4.49% - 6.9% 
• Variable APR range: 3.99% - 6.8%

• Loan terms: 5,7,10,15 - 20 years
• Fixed APR range: 4.49% - 8.99% 
• Variable APR range: 4.49% - 8.99%

• Loan terms: 5,7,10,15 - 20 years
• Fixed APR range: 3.99% - 10.68%
• Variable APR range: 3.27% - 6.87%

• Loan terms: 5,7,10,15 - 20 years
• Fixed APR range: 4.83% - 7.64%  
• Variable APR range: 3.53% - 7.24%

• Loan terms: Multiple term options
• Fixed APR range: 4.49% - 9.44%  
• Variable APR range: 6.35% - 13.01%

Splash Financial 

Splash Financial, Inc. (NMLS # 1630038) reserves the right to modify or discontinue products and benefits at any time without notice. 

The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer, but does not guarantee you will receive any loan offers. Terms and conditions apply.

Products may not be available in all states. These rates are subject to change at any time. If you do not use the specific link included on this website, offers on the Splash website may include other offers from lending partners that may have a higher rate. 

• Fixed Rate options range from 4.49% (with autopay) to 8.00% (with autopsy). 
• Variable rate options range from 5.92% (with autopay) to 8.65% (with autopay). Some of the rates are based on the one-month London Interbank Offered Rate (“LIBOR”) index 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). 
• Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample of $10,000 with an APR of 5.47% for a 12-year term would be $94.86. Variable loans feature repayment terms of 5 to 25 years. For example, the monthly payment for a sample of $10,000 with an APR of 5.90% for a 15-year term would be $83.85.

Earnest

• The actual rate and available repayment terms will vary based on your income. 
• Fixed rates range from 4.64% APR to 9.24% APR (excludes 0.25% Auto Pay discount). 
• Variable rates range from 4.24% APR to 8.54% 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.

SoFi

• Fixed rates range from 4.49% APR to 8.99% APR with a 0.25% autopay discount. 
• Variable rates from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law.
• Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. 
• Your actual rate will be within the range of rates listed above and will depend on the term you select, the evaluation of your creditworthiness, income, the presence of a co-signer, and a variety of other factors.
• The lowest rates are reserved for the most creditworthy borrowers. 
• For the SoFi variable-rate product, the variable interest rate for a given month is 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). 
• APRs for variable-rate loans may increase after origination if the SOFR index increases. 
• The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. 
• This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. 
• The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. 
• Autopay is not required to receive a loan from SoFi.

Laurel Road 

• Laurel Road;  Rates as of 12/8/22. Rates are Subject to Change. Terms and Conditions Apply. All products subject to credit approval All credit products are subject to credit approval. 
• APRs shown include a 0.25% interest rate discount for AutoPay. 
• If the borrower chooses to make monthly payments automatically by electronic fund transfer (EFT) from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the borrower’s bank account. 
• The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. 
• Variable APRs are subject to increase after consummation. 
• The current index for variable rate loans is derived from the 30-day Average Secured Overnight Financing Rate (“SOFR”) and changes in the SOFR index may cause your monthly payment to increase. 
• Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, and those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%. 
• There is no limit on the amount your interest rate can increase at one time. 
• The Index is currently published by the Federal Reserve Bank of New York (“New York Fed”). View payment examples here. 
• KeyBank National Association reserves the right to modify or discontinue products and benefits at any time without notice. 

Nelnet Bank 

• Fixed interest rates range from 4.49% APR (with auto-debit discount) to 9.44% APR (without auto-debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. 
• The fixed interest rate will remain the same for the life of the loan. 
• Variable interest rates range from 6.35% APR (with auto-debit discount) to 13.01% APR (without auto-debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. 
• Variable rates may increase after consummation. Variable rates for Nelnet Bank Student Loans are calculated as the One-Month SOFR plus the applicable Margin percentage. 
• Variable rates will be based on the highest One-Month SOFR as published by the Federal Reserve Bank of New York on the twenty-fifth day (or the next business day) of the immediately preceding calendar month. 
• The variable rate may change on the first day of each month if the SOFR index changes. This may result in higher monthly payments. 
• The current One-Month SOFR index is 4.08% as of December 1, 2022. The lowest interest rate for each loan type requires automatically withdrawn (“auto debit”) payments. 
• The lowest rate is available only to the most creditworthy applicants. Not all borrowers will receive the lowest rate., 
• The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, and (3) the loan type selected. If approved, applicants will be notified of the rate qualified for within the stated range.

Refinance Your Student Loan: Question and Answer

Should Refinancing Student Loan be an Option for me now?

• The reason why people embark on refinancing student loans is to pay back debts acquired during their educational program.

• You should be able to assess your current situation and know your needs before you choose a refinancing.  
  
  
• Know if it’s a good time to refinance and consider what your current rate is if you could potentially qualify for a lower rate and if any fees will be involved. 
  
  
• However, it may make sense to hold off on refinancing your student loans if your income isn’t stable and your FICO score is low.

How Do I Refinance my Student Loans?

To refinance your student loans you have to:

• apply for a loan from a private lender for the amount of your existing debt.

• Once approved, you can use the loan to pay off your old loans. 

• You can refinance both federal and private student loans, consolidating them together. 
  
  
• After that, you'll have just one loan to manage, with only one monthly payment to remember. 

What Credit Score Do I Need to Refinance Student Loans?

• A credit score is what qualifies you for a refinancing loan, the higher your (or co-signers) credit score the better your chances to qualify for a lower rate. 

• Not all lenders publicly list their minimum credit score requirements. 
  
  
• You need enough income to comfortably cover your expenses, student loan payments, and other debts. 
  
  
• Earnest has the lowest requirement among those we considered in this article. To qualify for a loan from Earnest, you'll need a minimum credit score of 650.

Can I Refinance Federal Student Loans?

• If you have federal student loans, it is advisable you should not refinance while the government forbearance is in effect. Which it's scheduled to expire no later than June 30, 2023. 

• Most lenders consider borrowers with credit scores of 650 and above.
  
  
• When you refinance your federal education debt, you'll lose federal benefits and protections. For example, you'll no longer be eligible for income-driven repayment plans, Public Service Loan Forgiveness, or federal forbearance or deferment programs.
  
  
• Refinancing may be worth it if your goal is to save money, but think carefully about the downsides before submitting your loan application.