Six Reasons You Should Not Refinance Your Student Loans
Refinancing often means lower interest rates, but some borrowers should avoid a student loan refinance.
Rank | Lender | Interest_Rates_ | Loan_Amounts____ |
---|---|---|---|
1 | 5.19%* – 10.24% | $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 | 5.28% – 8.99% | $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 | 5.24% – 9.99% | $5,000 – No Max | |
SoFi Review: SoFi is the biggest name in student loan refinancing for a simple reason – their rates are reliably among the best on the market. | Application | ||
4 | 5.19% – 9.99%^ | $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^ | ||
5 | 5.49% – 12.18% | $5,000 – $300,000 | |
LendKey Review: LendKey partners with local banks and credit unions to provide their loans. The end result is competitive rates provided by local reputable businesses. | Application + $150 Bonus |
Note: The lowest listed rate for each lender is listed as an APR and includes a .25% autopay discount where available. The industry standard among nearly all lenders is to offer this discount.
Click here for the full list of national lenders and reviews.
Methodology: Learn how these rankings are generated.
Refinancing often means lower interest rates, but some borrowers should avoid a student loan refinance.
Slight differences in interest rates, loan terms, and approval chances give Splash Financial the edge over Earnest.
Splash and SoFi are very close on interest rates and loan terms. Splash Financial is slightly ahead for now, but both lenders have been at the top of our rankings.
Student loan refinancing for lower interest rates sounds great, but there are reasons even a well-paid Doctor should not refinance.
Lawyers with federal student loans should think twice before starting the refinance process.
Understanding how student loan refinance companies make money can help borrowers find the best deal and avoid scams.
Getting the lowest possible student loan refinance rate requires shopping around. With the right strategy, checking rates takes very little time.
Refinancing might be a great idea, or it could be a horrible mistake. It all depends on your existing loans and personal circumstances.
Refinancing student debt during college usually isn’t an option, but there are moves to be made during school that make a big difference when you start repayment.