Rates last updated: December 5, 2018
|Rank||Lender||Interest Rates||Sign-Up Bonus||Loan Amounts||Application|
|1||2.47% – 7.979%||$150||$5,000 – No Max||Apply|
|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.|
|2||2.51% – 9.81%||$150||$5,000 – $300,000||Apply|
|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.|
|3||2.55% – 6.69%||$150||$15,000 – No Max||Apply|
|ELFI Review: ELFI has the best interest rates around. Even though ELFI is new, it is the product of a regional bank that has been in business for decades.|
|4||3.05% – 7.02%||$150||$5,000 – No Max||Apply|
|Laurel Road Review: Even though Laurel Road does not advertise the lowest rates, they frequently offer the best rate to borrowers who shop around. Laurel Road also has a specialized program for medical professionals.|
|5||2.50% – 7.25%||$150||$5,000 – $500,000||Apply|
|CommonBond Review: CommonBond has quickly established itself as one of the top lenders available. The interest rates offered are among the best and customer satisfaction appears to be very high.|
|6||2.96% – 7.01%||Up to $2,000||$7,500 – $300,000||Apply|
|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.|
|7||4.25% – 7.89%||$200*||$7,500 – $200,000||Apply*|
|EDvestinU Review: EDvestinU scores points for transparency and low interest rates on 15 and 20 year loans, but we have a couple concerns.|
|8||2.82% – 9.33%||$200*||$10,000 – $350,000||Apply*|
|Citizen's One Review: Citizen's Bank (also called Charter One) is one of the few traditional banks left in the student loan refinance marketplace. Citizen's may be an unremarkable option, but is still a solid choice and worth a comparison shop.|
|9||2.57% – 6.99%||$200*||Unknown||Apply*|
|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.|
|10||3.75% – 6.75+%||–||Max $100,000||Apply|
|Alliant Review: Alliant is a highly regarded Credit Union. Unfortunately, their student loan refinancing options don't match the high quality of their other banking products.|
|11||2.82% – 7.69%||$200*||$10,000 – $350,000||Apply|
|Purefy Review: Purefy's options are someone what limited as they do not offer a variable-rate loan and have a maximum repayment length of 15 years while most other lenders offer 20. Purefy seems to excel at medium length fixed-rate loans.|
|12||3.97% – 9.85%||$200*||$10,000 – $250,000||Apply*|
|Connext Review: Connext interest rates start out low but most loans will have higher rates. Connext is a decent option but most borrowers will be able to do better elsewhere.|
|13||3.13% – 7.99%||$200*||$5,000 – $250,000||Apply*|
|College Ave Review: College Ave loses points because the maximum repayment length is only 15 years and some of their loans are serviced by Navient. That being said, the interest rates are very competitive with other lenders.|
|14||2.82% – 7.69%||–||$10,000 – $350,000||Apply|
|U-Fi Review: One the positive side, U-Fi is one of the very few lenders that offers a 25 year term to repay your loan. The downside is that they only offer it as a variable-rate loan, which is a lot of time for interest rates to go up.|
|15||4.98% – 7.59%||–||$10,000 – $75,000||Apply|
|PNC Review: PNC has the best rates of the National Banks offering student loan refinancing, but PNC doesn't stack up to the student loan startups, regional banks, or credit unions.|
|16||4.45% – 6.95%||$200*||$10,000 – No Max||Apply*|
|MEFA Review: MEFA doesn't have the best rates on the market, but if you are specifically looking for a 15-year loan, MEFA is very competitive. For shorter or longer loans, it is best to look elsewhere.|
|17||5.24% – 9.99%||–||$5,000 – $120,000||Apply|
|Wells Fargo Review: Wells Fargo is the last of the big-name institutions still offering student loan refinancing and consolidation. Unfortunately, the rates offered are just not competitive with the other lenders in the market.|
|18||4.00% – 9.89%||$200*||$10,000 – $250,000||Apply*|
|iHelp Review: iHelp falls short due to limited repayment plan options and higher rates than the competition.|
|19||6.73% – 34.12%||–||$2,000 – $35,000||Apply|
|Prosper Review: Prosper may be a good option for a personal loan, but is a bad choice for student loan refinancing. Origination fees and high interest rates make a Prosper loan an expensive route to refinance your student loans.|
Additional Rate Information…
- Interest rates have been updated as of 12/5/18. We have also updated the table to include the newest national lenders on the refinance marketplace.
- The lowest interest rate displayed is usually the 5-year variable-rate loan. If you are looking for a fixed-rate loan or a longer loan term, interest rates will be a little higher. We have also ranked refinance lenders according to who has the lowest 7-year, 10-year, 15-year, and 20-year loans.
Using this resource…
- The idea behind the chart is to organize a large amount of information into a small space. It should be a helpful tool, but it cannot possibly include every term and condition for every company.
- The goal is to provide a company overview, provide a starting point in your research, and make sure that you do not miss out on any existing promotions.
- Interest rates normally change quarterly, but they can change at any time. We try to keep this page as up to date as possible, but some rates may have changed by a fraction of a percent.
- The goal is to have a full list of every student loan consolidation company. If there is a national lender that you do not see on this list, please let us know, so we can get them reviewed and compare them to the other lenders.
Tips for getting the best rate…
- The company that advertises the lowest rate will not always have the best rate for you. The lowest advertised rates are for borrowers with excellent credit who borrow short-term (5 years). The best rate for the loan length you need could be with a number of different companies.
- Shopping around will not hurt your credit score. The credit bureaus treat multiple credit inquires in a short period of time as one single credit check so that you are not penalized for shopping around.
- Don’t try to time the market. You don’t need to do any guesswork to figure out when interest rates are at their lowest. Unlike refinancing a house, where there are closing costs, there is no cost to you to consolidate your student loans. If another company starts offering lower rates in 6 months, refinance again. More on timing of refinancing applications…
- Think about fixed vs. variable rate loans. The variable rate loans often are the lowest advertised, but they can go up. If you will be borrowing for a long time, consider a fixed rate loan, even if it means a slightly higher interest rate right now.
- Machines, not humans, decide the interest rates. It is normally a waste of time to try to negotiate a lower interest rate with a lender. The interest rate determination is based upon a computer algorithm. Your time chasing a lower rate is better spent by reaching out to many lenders.
Tips for finding the best student loan consolidation or refinance company…
- Find out for yourself. Just because everything can be done online does not mean it should. Interact with their customer service as much as possible to get a feel for what it is like to do business with the company. The best time to do this is when you have an approval in hand. You can quiz them on the process and the terms of the deal they have proposed to you.
- Make them win your business. If two lenders offer the same rate, call them both and ask why you should go with one lender over the other. Force them to explain why their loan terms or programs are better than the competitor’s option.
Mistakes to Avoid…
- Don’t give up the federal perks too soon. If you have federal student loans, you can consolidate them with a private company, but it isn’t always a good idea. You have to give federal benefits like income driven repayment plans and student loan forgiveness programs. Going the private route commits you to paying off the loan in full, so make sure the interest rate savings is worth what you are giving up. More on weighing federal benefits against private savings…
- Don’t think a rejection is permanent. A minor change in circumstances can be the difference between an acceptance and a denial. If you pay off a loan or get a new job, you become a significantly different applicant. More on turning a rejection into a denial…
- Don’t put too much weight on a cosigner release. Some lenders are better than others when it comes to releasing a cosigner from the loan, but there is little incentive for any lender to grant a cosigner release. Lenders would much rather have two people responsible for the loan instead of one, so they will look for any reason to deny the release. For your financial planning, if you absolutely must have a cosigner, assume they will be on it for the life of the loan. More on understanding cosigner releases…
Understanding the consolidation process…
- Student loan consolidation is a simple process. Find a new lender and get approved for a loan. Your new lender then pays off your old debts in full. With your old debt paid off, you now owe the new lender. Payments are made to the new lender at the lower interest rate and/or lower monthly payment that you previously agreed upon.
- This is not an all or nothing process. If you have two loans at 3% and two loans at 11%, you can refinance the high interest debt and leave the low interest debt alone.
- Consolidation and refinancing are pretty much the same thing. Refinancing means one lender pays off a single existing loan. Consolidation means a lender pays off multiple existing loans and you repay one larger single loan. These terms are often used interchangeably.
- Ask for help. Major financial decisions are never easy. Do as much research as possible, consider consulting financial professionals, and don’t be ashamed if you don’t understand something. Try our student loan forums to ask questions, exchange ideas, and get tips.