The ELFI Refinance review is updated each month to include the latest interest rate and lender bonus information.
ELFI has emerged as one of the best student loan refinance lenders on the market.
Our review of ELFI found two big advantages over most other lenders. First, the ELFI customer support is based in the US and has won several awards. Second, because ELFI is backed by a bank, their rates tend to be more stable than those offered by tech companies like SoFi, Earnest, and CommonBond.
That all being said, there is some cause for concern for borrowers considering refinancing with ELFI.
Getting Started: The ELFI Basics
|Loan Terms||5, 7, 10, 15, and 20 Years|
|Variable Rate Loans||2.39% - 6.01%|
|Fixed Rate Loans||2.47% - 5.99%|
|Minimum Refinance Amount||$15,000|
|New Borrower Bonus||$150|
While the starting rates on ELFI loans are decent, the highlight for ELFI might be the 15 and 20-year fixed-rate loans where they are among the lowest rates on the market.
To qualify for an ELFI loan, a borrower does need to have a degree and pass a credit check. Like most legitimate lenders, there are no loan application fees, origination fees, or prepayment penalties.
One area where ELFI is a little more strict than other lenders is that they require a minimum student loan balance of $15,000 to refinance. Borrowers with smaller balances should look at lenders like CommonBond and Laurel Road, who require a minimum of only $5,000.
ELFI does offer a co-signer release program, but co-signers can only be released if the borrower can pass a credit check on their own.
Education Loan Finance Advantages
ELFI offers more than just the low interest rates. Their call centers are all located in Tennessee, and borrowers get a single point of contact with a direct number to call for support. This should make resolving any issues go significantly smoother.
ELFI student loans are serviced by Mohela and American Education Services (AES). Mohela has one of the better reputations among student loan servicers, while AES is just average. Unfortunately, borrowers do not have a choice in the servicer that they are assigned.
ELFI is currently running a promotion that provides new borrowers a bonus of $150 who sign up following this link. While $150 is a decent chunk of change, we should note that it is still critical to shop around — borrowers with larger balances will be much better off in the long run if they chase the lowest rate rather than the biggest bonus.
Borrower Beware: An Important ELFI Concern
The concern we have with Education Loan Finance applies to pretty much every student loan refinance company.
Even though it makes sense for some borrowers to consolidate their federal student loans with a private lender, this move can also be a mistake. Refinancing your federal loans means you lose federal perks such as repayment plans based upon your income and student loan forgiveness programs. We look at these programs as an insurance policy. The cost of that insurance policy is higher interest rates.
If you think you might lose your job or not be able to afford your student loans, it is best to keep your loans with the federal government. If you have no problem paying off the debt, locking in a low interest rate could be a smart move.
Do I have Federal Loans? If you are not sure if your student loans are federal or private, visit the Department of Education’s Student Aid Portal. They keep detailed records of all federal student loans.
Why Pick ELFI Over Refinance Lenders Like SoFi and Earnest?
After watching ELFI for several years, I’ve come to the conclusion that this is a lender that marches to the beat of its own drum.
Investor interest tends to move the rates at most tech-based lenders. If student loans are a popular investment, the tech companies can offer excellent rates. If nobody wants to make an investment, funds dry up, and lenders raise rates. Most refinance companies move up and down in a similar manner.
ELFI rates move around less. There are times when ELFI is a bit behind the rest of the market and there are times when ELFI has by far the best rates. For this reason, ELFI is worth a look for any borrower shopping around.
ELFI Student Loan Refinance Review: The Final Thoughts
The Education Loan Finance option sticks out due to the low interest rate offerings in a variety of loan categories.
Ultimately, advertised rates are a tiny part of the refinance equation. What matters is the actual rate offered. Because ELFI combines the stability of a longstanding bank with very low interest rates, it is a lender worth serious consideration.