Where Can I Refinance Student Loans?
Where Can I Refinance Student Loans?
If you need to know where to go to refinance your student loans, you’ve come to the right place. We have curated some of the best offers from lenders across the country to help you compare products to find the best refinance option for your specific needs. Start by looking at our lineup below to see refinancing options right away. Or you can keep reading to learn more about refinance insights.
Best Student Loan Refinance Companies
Here are five of the best companies in the business that offer student loan refinancing. We think these lenders have great products, complete with low starting interest rates, zero origination fees, favorable borrowing limits, and great customer service (as evidenced in mystery shopper phone calls).
Student Loan Refinance Rates
- Interest Rates
- Loan Min/Max
- Minimum: $5,000
- Maximum: $500K
- Repayment Terms: 5, 10, 15, or 20 years
- Degree Requirements: Must have earned a bachelor's degree from an approved post-secondary institution and program of study.
Best Student Loan Refinance Rates
The best student loan refinance rates start at around 1.87%. When it comes to finding the best loan and low rates, there are many things to consider. The best rate you will qualify for, will likely be a variable interest rate. Variable interest rates fluctuate with the market, so while your initial variable rate may be low, keep in mind that it could increase over time, which will increase your monthly payment amount as well.
The lowest fixed rates are typically higher than the lowest variable rate, but will stay the same for the life of the loan. Better rates are offered to borrowers who have stronger FICO® scores and meet the qualifications as determined by each lender. Some borrowers choose to apply with a strong creditworthy cosigner to improve their loan rates.
Should I Refinance My Student Loans?
It can certainly be a good idea to refinance your student loans because of the many benefits that may come from it. Whether you have multiple loans or a single loan with a large balance and uncomfortable monthly payments, refinancing allows you to accomplish some key goals, including:
- Lower your interest rate. You may qualify for a rate that is lower and more competitive than what you’re paying today, which could potentially save you thousands of dollars during repayment.
- Reduce your monthly payment. By extending your repayment term, from 10 years to perhaps 15 years or more, your monthly payment could go down.
- Eliminate the hassle of paying multiple parties. Refinancing could help you can reduce the stress of paying multiple loan servicers, as well as the risk of forgetting to pay one of your loans.
- Contribute more savings.With additional wiggle room in your monthly budget, you can set aside money for an emergency fund or short-term savings. Because life happens.
- Release a cosigner. If you needed a cosigner to help you qualify for an in-school loan (such as a private loan), refinancing your debt is a way to release your cosigner.
- Continue to leverage tax deductions. Interest paid on a refinanced student loan may still qualify for a federal income tax deduction, subject to limitations on Adjusted Gross Income.
- No prepayment penalties. Private student loan lenders, including our partners that offer refinancing, do not charge a prepayment penalty.
Why Refinance Student Loans?
In order to determine if it is worth it to refinance your student loans, you should take a look at what you’ll potentially gain. This boils down to a question of the financial upside, as well as an honest review of whether or not you’d be sacrificing any federal benefits (this applies if you decide to include federal student loans in your refinance loan). We’ve included a refinance calculator below, along with a handy chart to help you dig into the core considerations.
| Problem you're trying to solve | Is refinancing worth it? |
|---|---|
| You're looking to reduce your interest rate | Yes. Even with lower loan balances, reducing your annual percentage rate (APR) can help you save money. |
| You have multiple loans and you want to simplify repayment | Yes |
| You want to release your cosigner | Yes |
| You want to transfer your parent Loan debt to your child | Yes. But you should know that your son/daughter will need to apply for the refinanced loan and pass a credit check on their own merit. |
| You need to reduce your monthly payment | Yes. However, if you have federal loans and think you may qualify for an income driven repayment plan, you may want to research your options. |
| You have federal student loans and you’re pursuing a public-service career, or an occupation in a national/regional shortage area | Maybe not. At least not where your federal loans are concerned. You should do some homework on student loan forgiveness programs to understand if you qualify. |
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