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: August 14, 2021

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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: January 3, 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		1.74% – 6.25%	$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		1.98% – 7.04%	$5,000 – $500,000
	CommonBond Review: CommonBond has a higher approval rate than many other lenders. The interest rates offered are among the best and customer satisfaction appears to be very high.		Application + $150 Bonus
3		1.86% – 5.99%	$15,000 – 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
4		1.89% – 6.00%	$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
5		1.74% – 6.94%	$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

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

Earnest Student Loan Refinance Review

Earnest gets a 4/5 rating due to excellent interest rates and high borrower satisfaction. However, some borrowers will want to avoid Earnest.

What is a good student loan interest rate?

For most student loan borrowers, a good interest rate is one that is between 2% and 4%. However, many other circumstances need to be considered.

Earnest vs. Citizens Bank Student Loan Refinance Comparison

Citizens Bank and Earnest are both heavy hitters in the student loan refinance business, but Earnest is slightly better.

Can You Refinance Private Student Loans?

Refinancing federal student loans is often a risky decision. Refinancing private student loans is a smart move as long as you are getting a better interest rate or loan terms.

Citizens Bank Student Loan Refinance Review

Citizens Bank isn’t flashy and doesn’t advertise the lowest rates in the market, but many borrowers actually qualify for excellent rates with Citizens.