Should I Refinance My Student Loans?
Best Student Loan Refinance Lenders
College Ave Student Loans
- Variable rate range: 5.99% – 11.99% APR1
- Fixed rate range: 5.99% – 11.99% APR1
- No application or prepayment fees
- Apply in 3 minutes or less for instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
Information advertised valid as of 03/01/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
ELFI Student Loan Refinance
- Customers are saving an average of $309 every month and an average of $20,936 in total savings after refinancing their student loans with Education Loan Finance1
- Variable and fixed rates starting from 4.53% APR and 5.08% APR2
- Prequalify in as little as two minutes
- Award winning customer service from your dedicated Student Loan Advisor who is matched to you from the moment you sign up
1Average savings calculations are based on information provided by SouthEast Bank/ Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.
2Rates accurate as of 3/15/23. The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. To qualify for refinancing or student loan consolidation through Education Loan Finance, you must have at least $10,000 in qualified student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary Education Loan Finance institution. Education Loan Finance Parent Loans are limited to a maximum of the 10-year term.
SoFi Student Loans
- Rates as low as 5.09% variable and 4.49% fixed1
- No fees or prepayment penalties
- Unemployment protection
1Fixed rates range from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Variable rates from 5.09% 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, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates 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.
Splash Financial Refinance Loan
- Rates as low as 4.59%1 Variable APR and 4.47%1 Fixed APR
- No pre-payment penalties, origination, or application fees
- See rates in 3 minutes without affecting your credit score2
1The rates displayed may include a 0.25% autopay discount.
2To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Earnest Student Loan Refinancing
- Variable rates starting at 4.99% APR (including 0.25% Auto Pay discount)*
- Fixed rates starting at 4.96% APR (including 0.25% Auto Pay discount)*
- Choose your own monthly payment
- No fees of any kind and exceptional customer service for the life of your loan
- Check your rate in under 2 minutes
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.21% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.24% APR to 9.19% 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.
*Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Not all borrowers will qualify for our lowest rates, and your rate will be based on creditworthiness at time of application.
The information provided on this page is updated as of 03/09/2023. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
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Student loan refinancing can sound pretty enticing. The prospect of fewer monthly payments, lower APR, or freeing up some of your monthly cash flow may help you realize your financial goals. While there are a lot of benefits with student loan refinancing, there are still some potential drawbacks that you will want to consider before you move forward. People refinance student loans for different reasons, so what worked best for your brother or your best friend may not be the right approach for you.
Kimberly Schrant, financial coach and CPA, who runs KansasMoneyCoach.com, advises, “Everyone’s life is different, so there is not a cookie-cutter approach to this part (or any part) of a personal financial plan.”
With this to consider, let’s look at some of the details the pros suggest you consider before you make up your mind.
Reasons to Refinance Student Loans
The first thing to consider is why you want to refinance or consolidate your student loans. Matt Hylland, financial planner with Hylland Capital Management states, “Refinancing student loans can be beneficial in a number of ways, depending on your goals. Borrowers could refinance to lower their interest rate, pay off their loans sooner, or free up monthly cash flow.”
Knowing what it is you want to achieve by refinancing or consolidating student loans will also help you weigh the pros and cons effectively. Hylland continues “If refinancing enables you to pay off higher interest debt, or save more into retirement accounts, it may be beneficial in the long run.”
Is your goal a lower interest rate, a more manageable monthly payment, or freeing up cash for other purposes? Nail down the purpose and motivation for consolidating your student loans first. This will help guide the process.
View My Student Loan Refinancing Options
Loss of Federal Student Loan Repayment Benefits
If you want to consolidate federal student loans, you’ll want to look at the Direct Consolidation Loan program first. This is the consolidation program offered by the federal government, and it will allow you to retain the benefits of your federal student loans, such as deferment, forbearance, Income Driven Repayment, Public Service Loan Forgiveness, etc.
When you consolidate through the federal program however, your new interest rate is a weighted interest rate determined by your existing student loans. This program may help streamline the repayment process, but you if you are looking for a reduction in your interest rate based on current competitive market rates, you will not find that with a Direct Consolidation Loan.
Private student loan consolidation, also known as refinancing, can offer highly competitive interest rates that may be much lower than what you are currently paying. However, if you refinance your federal loans with a private lender, you will lose the guaranteed benefits of the federal program.
According to Hylland, “There are many cases where it would be worth paying a higher interest rate on certain government backed loans compared to a lower interest rate with a private lender. Although interest rate is important, there is usually more to consider.”
If you’re confident in the stability of your income, private student loan consolidation may offer the savings and flexibility you’re looking for as you plan your financial future. However, if you are consolidating because you’ve fallen on leaner times, the benefits of the Direct Consolidation Loan program may offer you more financial security.
Private Student Loan Refinance Lenders
You can compare private student loan refinance lenders on our site. And keep in mind that working with a private lender is the only way to roll both your federal and private student loans together. In other words, the Direct Consolidation Loan program is for federal loans only.
When comparing lenders, you will want to make your choice based on the product that is a best fit with your goals. Common items to evaluate include:
- Available repayment terms
- Fixed and variable APRs
- Zero origination or loan fees
- Cosigner release options
- Benefits: Some lenders offer dedicated loan advisors, short periods of deferment in cases of hardship, interest rate discounts if you enroll in autopay, spousal loan consolidation, etc.
Schrant also points out the importance of your relationship with your lender. “…having a lender with great customer service is important. When talking to people dealing with student loan repayment, a complaint often heard is that the lender's customer service leaves a lot to be desired. Since this relationship could be long-term, be sure to have this be a consideration in the refinance plan.”
Is it a Good Idea to Refinance Your Student Loans?
We think it is a good idea to refinance student loans. After taking into account the reasons you should consider it (as outlined above) you can get started on making your financial goals a priority. Refinancing your student loans could make a considerable impact on both your short-term budget and your big picture targets.
“The danger in a refinance, oftentimes, is that the borrower feels like they have really accomplished something with the refinance. However, their balance sheet has not changed at all. The amount of their liabilities is still the same,” Schrant advises.
We could not agree more. If your goal was to free up money on a monthly basis in order to pay off a high interest rate debt (such as a credit card) or save for retirement, make sure you follow through with that plan.
Keep in mind that there are no penalties for paying your loan off early. If you extended your repayment term to help get you through financially challenging times, and later find yourself earning more, paying your debt off early can potentially save you thousands of dollars over the life of your loan. This can help you achieve other goals, such as buying a home, saving for retirement, or saving for your children’s education.
Ready to get started? Check out our Student Loan Refinancing Calculator!
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