If you have education debt, refinancing your student loans can lock in a better interest rate, lower your monthly payments, or take advantage of a flexible repayment plan.
Refinancing private loans is a simpler consideration. However, deciding to refinance federal loans can be more complicated. Monthly payments have been paused since March 2020, though they’ll resume again on September 1, 2023. Also, in June, the Supreme Court rejected the Biden administration’s forgiveness proposal, which would have canceled up to $20,000 in federal loans per eligible borrower.
With these developments, see if it makes sense for you to refinance your private or federal student loans.
- Best for Texas residents
- Best for Refinancing Without a Degree
- Best for Large Loans
- Best for New Hampshire Students
- Best for Cosigner Release
- Best for Best for Medical or Dental School Loans
- Best for Borrowers Who Didn’t Graduate
- Best for Borrower Protections
- Student loan refinance guide
- Frequently asked questions
Brazos: Best for Texas residents
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner — but there’s no way to release your cosigner later.
- Interest rates: Fixed or variable
- Minimum credit score: 720
- Loan terms: 5, 7, 10, 15, or 20 years
- Loan amounts: $10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
- Loan types: Federal and private loans
- Eligibility: Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher. Borrower must have a minimum income of $60,000 and credit score of 720, or $30,000 and 690 respectively if applying with a cosigner. Must be employed or self-employed or have accepted a firm employment offer that starts with 60 days.
Pros:
- Five loan terms available
- Competitive rates
- No origination or application fees
- Autopay discount of 0.25 percentage points
Cons:
- Only available to Texas residents
- No cosigner release
- High minimum credit and income requirements
- Bachelor’s degree required
Citizens: Best for Refinancing Without a Degree
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt. You don’t need to have earned your degree to qualify, making Citizens a good choice for anyone who left school before graduating.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 5, 7, 10, 15 or 20 years
- Loan amounts: $10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
- Loan types: Federal, private, undergraduate, graduate, professional, medical residents, parents
- Eligibility: Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. If you earned an associate degree or didn’t complete your degree, you must make 12 payments on your student loans before you’re eligible to refinance.
Pros:
- Repayment terms between 5 and 20 years
- Can prequalify and check your rates online
- Does not require that you graduated with your degree
- Autopay and loyalty discounts
Cons:
- Must make 36 payments before eligible for cosigner release
- Must make 12 payments on your loans before you can refinance if you earned an associate degree or didn’t complete your degree
- Relatively high loan minimum
ELFI: Best for Large Loans
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
- Interest rates: Fixed and variable
- Minimum credit score: 680
- Loan terms: 5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7 or 10 years for parent loan refinancing
- Loan amounts: Minimum of $10,000, maximum amounts vary based on eligibility
- Loan types: Federal and private student loans, parent PLUS loans
- Eligibility: Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance, a minimum income of $35,000, a minimum credit score of 680, and a minimum credit history of 36 months.
Pros:
- Allows students to refinance parent PLUS loans in their own name
- Student loan advisor assigned to each applicant
- Transparent credit and income requirements
- No application or origination fees
- Up to 12 months of financial hardship forbearance available
Cons:
- Must have graduated with at least a bachelor’s degree to qualify
- No cosigner release available
- No rate discounts offered
- Late fees and returned payment fees
EDvestinU: Best for New Hampshire Students
Nonprofit EDvestinU is part of the New Hampshire Higher Education Assistance Foundation (NHHEAF) Network and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EDvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options. Unfortunately, cosigner release requirements can be strict, with release not available until after 24 on-time payments.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 5, 10, 15, or 20 years
- Loan amounts: $7,500 to $200,000
- Loan types: Federal, private, undergraduate, graduate
- Eligibility: U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin. Borrowers must have obtained federal or private student loans which were used to attend an eligible institution.
Pros:
- No degree is required to refinance, and you can refinance while still in school
- Autopay discount of 0.25 percentage points
- Prequalification is available
Cons:
- Refinancing is only available in select states
- Minimum loan balance is higher than some competitors and maximum balance is lower
- Cosigner release requirements are strict
INvested: Best for Cosigner Release
INvested is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvested offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
- Interest rates: Fixed or variable
- Minimum credit score: 670
- Loan terms: 5, 10, 15, or 20 years
- Loan amounts: $5,000 to $250,000
- Loan types: Federal, private, undergraduate, graduate
- Eligibility: U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years
Pros:
- No degree is required to refinance
- Cosigner release available after just 12 on-time payments
- Autopay discount of 0.25 percentage points
- Deferment options for school enrollment, military service, or financial hardship
Cons:
- Lower maximum refinance limit than some competitors offer
- No prequalification option to view your rates
- No refinance options for international students
- Can’t transfer parent loan to student
ISL: Best for Best for Medical or Dental School Loans
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
For borrowers who apply with a cosigner, they can remove that cosigner after making 24 consecutive monthly payments on time, assuming the applicant meets the underwriting and credit criteria.
- Interest rates: Fixed
- Minimum credit score: 670
- Loan terms: 5, 7, 10, 15 or 20 years
- Loan amounts: $5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
- Loan types: Federal, private, undergraduate, graduate, parent, medical resident, medical and dental professional, in-school
- Eligibility: Must be a U.S. citizen or permanent resident (Maine are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
Pros:
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
Cons:
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
MEFA: Best for Borrowers Who Didn’t Graduate
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner. However, there’s no opportunity to release your cosigner later.
- Interest rates: Fixed
- Minimum credit score: Does not disclose
- Loan terms: 7, 10, or 15 years
- Loan amounts: $10,000 up to your total debt
- Loan types: Federal and private loans
- Eligibility: Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past 5 years. Applicants without an established credit history may apply with a cosigner.
Pros:
- No graduation requirement to refinance
- No fees whatsoever
- Prequalification available
Cons:
- No rate discounts available
- No variable interest rates
- No cosigner release available
- Parent student loans aren’t eligible
RISLA: Best for Borrower Protections
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
- Interest rates: Fixed
- Minimum credit score: Does not disclose
- Loan terms: 5, 10, or 15 years
- Loan amounts: $7,500 minimum up to of $250,000, depending on degree
- Loan types: Federal and private loans, parent loans
- Eligibility: Borrower or cosigner must have a minimum income of $40,000 and meet other credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Pros:
- Income-based repayment for borrowers experiencing financial hardship
- Up to 24 months of forbearance over the life of the loan
- Cosigner release for education loans after 24 months of on-time payments
- Multi-year approval available
- Rate discounts available
Cons:
- Limited repayment terms
- Minimum $40,000 income required
- Loans limited to $50,000 per year
- Can’t release cosigner on parent loans
- No variable rates
Methodology
Credible evaluated private student loan lenders in 10 different categories to determine the best lenders for refinancing. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and cosigner release options.
Student loan refinance guide
Student loan refinancing can be confusing. That’s why we created this guide to help you out. It will cover a number of topics like how student loan refinancing works, when to refinance your student loans, and the pros and cons of this strategy. We’ll also go over how to refinance student loans and answer several frequently asked questions.
How does refinancing student loans work?
Once you get a new loan with new terms from a private lender, the lender then pays off your existing loans. You then make payments on your new loan. Depending on your situation, you can enjoy a lower interest rate and save a lot of money over time. In general, you’ll need good credit, stable income, and a low debt-to-income ratio to qualify.
When to refinance student loans
You might want to refinance your student loans if:
- You want to pay off your loans sooner.
- You want to combine multiple student loans.
- You want a lower interest rate and/or lower monthly payment.
- You’re unhappy with your current lender.
- You have a stable income and good credit score.
- Market interest rates are low.
Student loan refinance pros and cons
Here are a few benefits and drawbacks of student loan refinancing:
Pros
- Can save money with a lower rate
- May combine several student loans and simplify your finances
- Might be able to release a cosigner
Cons
- No guarantee you’ll qualify
- Variable interest rates could increase
- Might miss out on federal student loan benefits like income-driven repayment plans and student loan forgiveness
How to refinance student loans
If you’d like to refinance a student loan, follow these steps:
- Research and compare lenders. Not all student loan refinancing companies are created equal. That’s why it’s a good idea to explore your options from multiple lenders. Compare interest rates, repayment terms, fees, perks, and customer service rankings.
- Choose your loan. Once you’ve done your research, pick the best refinancing loan that meets your needs. If you’d like to lower your monthly payment, for example, you might go with the one that lets you extend your current payment term.
- Apply. Visit the lender’s website to complete the application. Be prepared to submit documents that prove your identity and income, like a driver’s license, pay stubs, and tax returns.
- Stay current on your loans. While your loan is being processed, you’ll need to keep up with payments on your old loans. After your new loan is in place, double check that your old loans have been repaid.
- Set up automatic payments. Once your new loan has been finalized, consider enrolling in automatic payments so you never miss a payment. Some lenders may even reward you with a small interest-rate discount.
Best student loan refinance FAQ
Below, you’ll find the answers to some of the most common questions about student loan refinancing.
Can you refinance federal student loans?
Yes, it is possible to refinance federal student loans. If you do so, you may be able to lock in a lower interest rate and save some money. But you might miss out on some benefits, like federal deferment or forbearance programs, income-driven repayment plans, and student loan forgiveness. Before you refinance your federal student loans, make sure the pros outweigh the cons.
How often can you refinance student loans?
You can refinance your student loans as many times as you’d like. As long as you can land a lower interest rate and monthly payment, refinancing your student loans more than once may be a smart move. But keep in mind that even though you can prequalify with multiple lenders without any impact to your credit, completing too many official refinance applications in a short period can hurt your credit.
Why refinance student loans?
Student loan refinancing comes with a variety of benefits. It can help you lower your interest rate, saving you hundreds or even thousands of dollars over the life of the loan. Since this strategy also allows you to combine multiple student loans, it may simplify the payoff process. Plus, it can lower your monthly payment through a lower rate or longer repayment term. When you refinance, you may also release a cosigner from your student loans.