Student Loan Refinancing

Student loan refinancing is a great way to lower interest rates and speed up debt elimination. However, refinancing isn't the best choice for all borrowers.

Written By: Michael P. Lux, Esq.

Last Updated: March 21, 2022

Affiliate Disclosure and Integrity Pledge

Student Loan Refinancing

Student loan refinancing is a great way to lower interest rates and speed up debt elimination. However, refinancing isn't the best choice for all borrowers.

Written By: Michael P. Lux, Esq.

Last Updated: March 22, 2022

Affiliate Disclosure and Integrity Pledge

Who Should Refinance?

Borrowers with federal student loans should not refinance during the Covid-19 interest freeze.
Borrowers with private loans should refinance if they can get a lower interest rate or better loan terms.

Refinance Requirements

Applicants usually need a credit score in the mid-600s to 700 range.
Lenders don't publish Debt-to-Income Ratio requirements, but they look at DTI very closely.
Having a cosigner can enhance your chances of approval, but cosigning is often a risky decision.

Getting the Best Rate

The lowest advertised rates are usually for 5-year variable-rate loans.
Borrowers looking for a longer loan should start with the lenders advertising the lowest rates for 20-year loans.
Shopping around is the only way to verify that you have gotten the best rate possible.

Rank	Lender	Interest_Rates_	Loan_Amounts____
1		4.47% – 9.24%	$5,000 – No Max
	Splash Financial Review: Splash has competitive rates, but they start slightly higher than the top lenders. Splash also offers unique 8 and 12 year repayment terms.		Application + Up to $500 Bonus
2		4.53% – 8.24%	$10,000 – No Max
	ELFI Review: ELFI routinely offers excellent interest rates. Even though ELFI is new, it is the product of a regional bank that has been in business for decades.		Application + $150 Bonus
3		4.74% – 7.75%	$5,000 – No Max
	Laurel Road Review: Laurel Road currently has excellent approval rates combined with solid interest rates. Laurel Road also has a specialized program for medical professionals.		Application + $150 Bonus
4		4.74% – 9.19%	$5,000 – No Max
	SoFi Review: SoFi consistently offers the best actual interest rates to applicants. Combine that with SoFi's unique job placement program for borrowers and you have a winner.		Application + $150 Bonus
5		4.47% – 8.99%^	$5,000 – No Max
	Earnest Review: The rates advertised by Earnest are among the best, but in head to head comparisons, Earnest often falls short in actual rates offered. Earnest scores points because it has by far the most flexibility on loan repayment length.		Application + $150 Bonus^

Click here for the full list of national lenders and reviews.
Methodology: Learn how these rankings are generated.

How to Consolidate or Refinance Aidvantage Student Loans

Consolidating and refinancing are both options to streamline repayment and quickly eliminate Aidvantage student loans, but it is critical to make the right selection.

Why is it Risky to Refinance Federal Loans into a Private Loan?

Refinancing student loans is a great way to get lower interest rates, but it is a risky move for borrowers with federal student loans.

Student Loan Refinance Strategy as the Federal Interest Freeze Winds Down

Refinancing before the federal interest rate freeze ends is risky. However, it is possible to lock in a low interest rate without missing out on any possible extensions.

Brazos Student Loan Refinance Review

Brazos offers excellent interest rates on their student loan refinance product. However, strict geographic limitations mean many borrowers won’t be eligible.

The Student Loan Forgiveness Risks from Refinancing

Refinancing student loans is a great way to lower interest rates and monthly payments. Unfortunately, this move may negatively impact student loan forgiveness options.