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The Best Student Loan Refinance Rates for July 2019

Michael Lux Blog, Consolidation, Refinance, Student Loans 0 Comments

*Rate Tables Updated as of July 2, 2019

Despite a strong economy, student loan refinance rates have stayed relatively low.  We attribute this to a very competitive marketplace with many lenders competing for borrowers.

Those following the news saw the federal reserve raise interest rates a number of times in 2018.  In 2019, the fed has kept rates fairly steady, though experts predict possible cuts in the second half of the year.  Though changes in interest rates at the fed do not directly affect student loan interest rates, borrowers should expect that when the fed raises rates, student loan rates will edge up.

For consumers, the biggest change has been the differences between fixed rate loans and variable rate loans.  Some lenders are excellent with the variable rate loans, but have terrible fixed rates, while the opposite is true for others.

As usual, we have broken down the refinance rates according to loan type and length.  If you are looking for a 20-year fixed-rate loan, the competition for the lowest 5-year variable-rate loan doesn’t really matter.

The Lowest Student Loan Refinance Rates for 2019

RankLenderLowest RateSherpa Review
1CommonBond2.39%CommonBond Review
2SoFi2.41%SoFi Review
3Laurel Road2.43%Laurel Road Review

The top lenders all have the same exact best rate.  As is often the case, when one lender lowers their best advertised rate, the competition follows.

It is important to note that even though Laurel Road, CommonBond, and SoFi have the lowest possible interest rates, they do not necessarily get the top spot in our student loan consolidation and refinance rankings.  Borrowers are still best served by applying with 4-5 lenders as each lender has a different formula for evaluating applications.  The best advertised rates do not always equal the best rate offered, but they do provide a useful starting point.

The Best 20-Year Refinance Rate for July 2019

RankLenderLowest RateSherpa Review
T-1ELFI4.97%ELFI Review
T-1CommonBond4.97%CommonBond Review
3SoFi4.974%SoFi Review

On the other end of the spectrum, the best 20-year fixed-rate loan is currently offered by ELFI and CommonBond with SoFi close behind.  The rates of the top lenders in this category are largely unchanged from 2018.

Borrowers who are looking for the lowest possible payment when they refinance usually opt for a 20-year loan.  The advantage is easy payment, but the downside is that it comes with a larger interest rate.

The Lowest Fixed-Rate Student Loans

RankLenderLowest RateSherpa Review
1College Ave3.24%College Ave Review
2ELFI3.29%ELFI Review
3CommonBond3.36%CommonBond Review

For borrowers looking for the stability of a fixed-rate loan, but still in search of an ultra-low interest rate, the 5-year fixed-rate loan is usually the best bet.

The top rates and lenders have not changed much since last year, but College Ave has now taken the lead.

Other Noteworthy Interest Rate Changes

In the mid-length loans, specifically those at 7, 10, or 15 years in duration, Laurel Road and iHelp perform strongly.

For our overall rankings and lender reviews, be sure to check out our Student Loan Rankings page.  For a complete breakdown by loan type for all loan lengths, head over to our student loan refinance rates table.