7 Best Options to Refinance Student Loans – Get Your Lowest Rate

• A student loan refinance calculator, which can help you find out how much money you can save if you refinance
• A comparison tool which lets you see student loan terms all at once, with no need to give up personal information.

In this guide, we’ll cover:

Additional resources:

Can I Get Approved?

• Proof that you can afford your payments. That means you have a job with income that is sufficient to cover your student loans and all of your other expenses.
• Proof that you are a responsible borrower, with a demonstrated record of on-time payments. For some lenders, that means that they use the traditional FICO, requiring a good score. For other lenders, they may just have some basic rules, like no missed payments, or a certain number of on-time payments required to prove that you are responsible.

Is It Worth It?

Is there an origination fee?

Is the interest rate fixed or variable?

Diving Deeper: The Best Places to Consider a Refinance

1. SoFi

SoFi : Variable rates from 2.58% and Fixed Rates from 3.25% (with AutoPay)*

Pros Pros

• Borrowers can refinance private, federal and Parent PLUS loans together: Through SoFi, borrowers have the ability to combine all of their student loans (private, federal and Parent PLUS) when refinancing. Along with the ability to refinance Parent PLUS loans, parents can also transfer the PLUS loans into their child’s name.
• Access to career coaches: SoFi offers their borrowers access to their Career Advisory Group who work one-on-one with borrowers to help plan their career paths and futures.
• Unemployment protection: SoFi offers some help if you lose your job. During the period of unemployment they will pause your payments (for up to 12 months) and work with you to find a new job. However, just remember that any unemployment protection offered by SoFi would be weaker than the income-driven repayment options of federal loans.

Cons Cons

• No cosigner release: While they offer you the opportunity to refinance with a cosigner, it is important to know that SoFi does not offer borrowers the opportunity to release a cosigner later on down the road.
• You lose certain protections if you refinance a federal loan: This con is not unique to SoFi (and you will find it with all other private lenders). Federal loans come with certain protections, including robust income-driven payment protection options. You will forfeit those protections if you refinance a federal loan to a private loan.

Bottom line

2. Earnest

Earnest : Variable Rates from 2.57% and Fixed Rates from 3.25% (with AutoPay)

Pros Pros

• Flexible repayment options: Earnest offers some of the most flexible options when it comes to repayment. They allow you to choose any term length between 5-20 years. You can choose your own monthly payment, based upon what you can afford (to the penny). Earnest also offers bi-weekly payments and “skip a payment” if you run into difficulty.
• Ability to switch between variable and fixed rates: With Earnest, you can switch between fixed and variable rates throughout the life of your loan. You can do that one time every six months until the loan is paid off. That means you can take advantage of the low variable interest rates now, and then lock in a higher fixed rate later.
• Loans serviced in-house: Earnest is one of just a few lenders that provides in-house loan servicing versus using a third-party servicer.

Cons Cons

• Cannot apply with a cosigner: Unlike many of the other lenders, Earnest does not allow borrowers to apply for student loan refinancing with a cosigner.
• No option to transfer Parent PLUS loans to Child: If you are a parent that is looking to refinance your Parent PLUS loan into your child’s name, it is important to note that this cannot be done through refinancing with Earnest.
• You lose certain protections if you refinance a federal loan: When refinancing with any private lender, you will give up certain protections if you refinance a federal loan to a private loan.

Bottom line

3. CommonBond

CommonBond : Variable Rates from 2.57% and Fixed Rates from 3.18% (with AutoPay)

Pros Pros

• Hybrid loan option: CommonBond offers a unique “Hybrid” rate option in which rates are fixed for five years and then become variable for five years. This option can be a good choice for borrowers who intend to make extra payments and plan on paying off their student loans within the first five years. If you can a better interest rate on the Hybrid loan than the Fixed-rate option, you may end up paying less over the life of the loan.
• Social promise: CommonBond will fund the education of someone in need in an emerging market for every loan that closes. So not only will you save money, but someone in need will get access to an education.
• “CommonBridge” unemployment protection program: CommonBond is here to help if you lose your job. Similar to SoFi, they will pause your payments and assist you in finding a new job.

Cons Cons

• Does not offer refinancing in the following states: Idaho, Louisiana, Mississippi, Nevada, South Dakota and Vermont.
• You lose certain protections if you refinance a federal loan: When refinancing with any private lender, you will give up certain protections if you refinance a federal loan to a private loan.

Bottom line

4. LendKey

LendKey : Variable Rates from 2.56% and Fixed Rates from 3.15% (with AutoPay)

Pros Pros

• Opportunity to work with local banks and credit unions: LendKey is a platform of community banks and credit unions, which are known for providing a more personalized customer experience and competitive interest rates.
• Offers interest-only payment repayment: Many of the lenders on LendKey offer the option to make interest-only payments for the first four years of repayment.

Cons Cons

• Rates can vary depending on where you live: The rate that is advertised on LendKey is the lowest possible rate among all of its lenders, and some of these lenders are only available to residents of specific areas. So even if you have an excellent credit report, there is still a possibility that you will not receive the lowest rate, depending on geographic location.
• No Parent PLUS refinancing available: Unlike several of the other student loan refinancing companies, borrowers do not have the ability to refinance Parent PLUS loans with LendKey.
• You lose certain protections if you refinance a federal loan: As when refinancing federal loans with any private lender, you will give up your federal protections if you refinance your federal loan to a private one.

Bottom line

5. Laurel Road

Laurel Road Bank : Variable Rates from 2.99% and Fixed Rates from 3.50% (with AutoPay)

Pros Pros

• Forgiveness in the case of death or disability: They may forgive the total student loan amount owed if the borrower dies before paying off their debt. In the case that the borrower suffers a permanent disability that results in a significant reduction to their income,Laurel Road Bank may forgive some, if not all of the amount owed.
• Offers good perks for Residents and Fellows: Laurel Road Bank allows medical and dental students to pay only $100 per month throughout their residency or fellowship and up to six months after training. It is important for borrowers to keep in mind that the interest that accrues during this time will be added on to the total loan balance.

Cons Cons

• Higher late fees: While many lenders charge late fees,Laurel Road Bank’s late fee can be slightly steeper than most at 5% or $28 (whichever is less) for a payment that is over 15 days late.
• You lose certain protections if you refinance a federal loan: While not specific to Laurel Road Bank, it is important to keep in mind that you will give up certain protections when refinancing a federal loan with any private lender.

Bottom line

6. Citizens Bank

Citizens Bank : Variable Rates from 2.63% and Fixed Rates from 3.20% (with AutoPay)

Pros Pros

Cons Cons

Bottom line

7. Discover

Discover Student Loans : Variable Rates from 4.12% and Fixed Rates from 5.24% (with AutoPay)

Pros Pros

• In-house loan servicing: When refinancing with Discover, they service their loans in-house versus using a third-party servicer.
• Offer a variety of deferment options: Discover offers four different deferment options for borrowers. If you decide to go back to school, you may be eligible for in-school deferment as long as you are enrolled for at least half-time. In addition to in-school deferment, Discover offers deferment to borrowers on active military duty (up to 3 years), in eligible public service careers (up to 3 years) and those in a health professions residency program (up to 5 years).

Cons Cons

• Performs a hard credit pull: While most lenders do a soft credit check, Discover does perform a hard pull on your credit.
• No Parent PLUS refinancing available: Discover does not offer borrowers the option of refinancing their Parent PLUS loans.
• You lose certain protections if you refinance a federal loan: Be careful when deciding to refinance your federal student loans because when doing so, you will lose access federal protections, forgiveness programs and repayment plans.

Bottom line

Additional Student Loan Refinance Companies

Traditional Banks

• [FirstRepublicbankSL]First Republic Eagle Gold[/FirstRepublicbankSL]. The interest rates are great, but this option is not for everyone. [FirstRepublicbankSLAPR]Fixed rates range from 1.95% – 2.95% APR[/FirstRepublicbankSLAPR]. You need to visit a branch and open a checking account (which has a $3,500 minimum balance to avoid fees). Branches are located in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland (Oregon), Boston, Palm Beach (Florida), Greenwich or New York City. [FirstRepublicbankSLLoanAmt]Loans must be $60,000 – $300,000[/FirstRepublicbankSLLoanAmt]. First Republic wants to recruit their future high net worth clients with this product.
• Wells Fargo: As a traditional lender, Wells Fargo will look at credit score and debt burden. They offer both fixed and variable loans, with variable rates starting at [slrefinance.10.apr_variable_from]% and fixed rates starting at [slrefinance.10.apr_fixed_from]%. You would likely get much lower interest rates from some of the new Silicon Valley lenders or the credit unions.

Credit Unions

• Alliant Credit Union: Anyone can join this credit union. [AlliantSLAPR]Interest rates start as low as 4.50% APR[/AlliantSLAPR]. You can [AlliantSLLoanAmt]borrow up to $100,000 for up to 25 years[/AlliantSLLoanAmt].
• Eastman Credit Union: Credit union membership is restricted (see eligibility here). [EastmanCUSLAPR]Fixed rates start at 6.50% and go up to 8% APR[/EastmanCUSLAPR].
• Navy Federal Credit Union: This credit union offers limited membership. For men and women who serve (or have served), the credit union can offer excellent rates and specialized underwriting. Variable interest rates start at [slrefinance.37.apr_variable_from]% and fixed rates start at [slrefinance.37.apr_fixed_from]%.
• Thrivent: Partnered with [THRIVENTSL]Thrivent Federal Credit Union,[/THRIVENTSL] Thrivent Student Loan Resources offers variable rates starting at [slrefinance.98.apr_variable_from]% APR and fixed rates starting at [slrefinance.98.apr_fixed_from]% APR. It is important to note that in order to qualify for refinancing through [THRIVENTSL]Thrivent,[/THRIVENTSL] you must be a member of the [THRIVENTSL]Thrivent Federal Credit Union[/THRIVENTSL]. If not already a member, borrowers can apply for membership during the student refinance application process.
• UW Credit Union: This credit union has limited membership (you can find out who can join here, but you had better be in Wisconsin). [UWCUSLLoanAmt]You can borrow from $5,000 to $150,000[/UWCUSLLoanAmt] and rates start as low as [slrefinance.14.apr_variable_from]% (variable) and [slrefinance.14.apr_fixed_from]% APR (fixed).

Online Lending Institutions

• Education Loan Finance:This is a student loan refinancing option that is offered through SouthEast Bank. They have competitive rates with variable rates ranging from [slrefinance.100.apr_variable_from]% – [slrefinance.100.apr_variable_to]% APR and fixed rates ranging from [slrefinance.100.apr_fixed_from]% – [slrefinance.100.apr_fixed_from]% APR. [EducationLoanFinanceSL]Education Loan Finance[/EducationLoanFinanceSL] also offers a “Fast Track Bonus”, so if you accept your offer within 30 days of your application date, you can earn $100 bonus cash.
• EdVest: This company is the non-profit student loan program of the state of New Hampshire which has become available more broadly. Rates are very competitive, ranging from [slrefinance.40.apr_fixed_from]% – [slrefinance.40.apr_fixed_to]% (fixed) and [slrefinance.40.apr_variable_from]% – [slrefinance.40.apr_variable_to]% APR (variable).
• [IHELPSL]IHelp [/IHELPSL]: This service will find a community bank. Unfortunately, these community banks don’t have the best interest rates. Fixed rates range from [slrefinance.19.apr_fixed_from]% to [slrefinance.19.apr_fixed_to]% APR (for [IHELPSLTerm]loans up to 15 years[/IHELPSLTerm]). If you want to get a loan from a community bank or credit union, we recommend trying [LendKeySL]LendKey[/LendKeySL] instead.
• Purefy: [PurefySLAPR]Purefy lenders offer variable rates ranging from 3.11%-6.93% APR and fixed interest rates ranging from 3.35% – 8.24% APR[/PurefySLAPR]. You can [PurefySLLoanAmt]borrow up to $150,000[/PurefySLLoanAmt] for [PurefySLTerm]up to 15 years[/PurefySLTerm]. Just answer a few questions on their site, and you can get an indication of the rate.
• RISLA: Just like New Hampshire, the state of Rhode Island wants to help you save. [RislaSLAPR]You can get fixed rates starting as low as 3.49%[/RislaSLAPR]. And you do not need to have lived or studied in Rhode Island to benefit.