The act of refinancing student loans has the potential to assist certain borrowers in expediting the repayment of their debt and achieving long-term savings.
Although student loan refinance rates experienced an increase in 2023, projections of rate reductions by the Federal Reserve in the coming year suggest that refinancing rates may decline.
This indicates a favorable time for individuals to consider refinancing their debt.
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In this article, you will find our reviews of the best student loan refinance companies, along with valuable industry insights and a comprehensive guide on determining the opportune moments to refinance student loans.
Four Best Companies for Refinancing Student Loans
Credible
Minimum income requirements: Varies depending on the lender.
Minimum credit score: Varies based on the lender.
Cosigner release: Varies depending on the lender.
Loan amounts: Ranging from $5,000 up to the total balance.
Loan terms: 5 to 20 years.
Eligible loan types: Federal (including student and Parent PLUS) and private.
Eligible degrees: Undergraduate and graduate/professional.
Allows refinance for non-graduates: Dependent on the lender.
Fees: No origination or application fees. Late payment fees may apply.
Prepayment penalty: None.
Fixed interest rate: APR ranging from 4.75% to 11.19%.
Variable interest rate: APR ranging from 5.28% to 14.52%.
Credible does not act as a lender. Instead, it serves as an online marketplace where borrowers can compare rates and explore options for private student loans and student loan refinancing.
The platform offers personalized quotes from various sources, including banks, fintech companies, and state loan authorities such as the Massachusetts Educational Financing Authority (MEFA) and RISLA.
Borrowers can discover refinancing options for federal student loans, private student loans, and Parent PLUS loans through Credible.
PenFed
Minimum income requirements: Vary between $42,000 and $50,000, contingent on the loan amount and the presence of a cosigner.
Minimum credit score: 670
Cosigner release: Available after one year of consecutive on-time payments.
Loan amount: Ranges from a minimum of $7,500 to a maximum of $300,000.
Loan terms: 5- to 15-year terms.
Eligible loan types: Includes federal loans (both student and parent PLUS) and private loans.
Eligible degrees: Covers associates, bachelor’s, and graduate/professional degrees.
Allows refinance for non-graduates: No
Fees: No origination or application fees, with the possibility of a late fee.
Prepayment penalty: None
Fixed interest rate: APR ranging from 7.74% to 9.93%.
Variable interest rate: Not available.
Pentagon Federal Credit Union (PenFed) is the nation’s second-largest credit union, specializing in student loan refinancing with fixed-rate options.
It caters to a diverse range of borrowers, including students, parents, and couples, allowing refinancing of up to $300,000 in private or federal student loan debt over terms ranging from five to 15 years.
Earnest
Minimum income requirements: Not disclosed
Minimum credit score: 650
Cosigner release: Not available
Loan amount: Ranges from $5,000 up to $500,000
Loan terms: 5 to 20 years
Eligible loan types: Includes federal (including student and Parent PLUS) and private loans
Eligible degrees: Bachelor’s and graduate/professional
Allows refinance for non-graduates: Yes, under the condition that the student is in the last semester before graduation
Fees: No origination or application fees. Late payment fees may apply.
Prepayment penalty: None
Fixed interest rate: APR ranging from 5.19% to 9.99% (lowest rate includes autopay discount)
Variable interest rate: APR ranging from 5.99% to 9.99% (lowest rate includes autopay discount). Variable-rate loans are not available in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, or Texas.
Earnest provides the flexibility to tailor your payments by selecting a loan term that aligns with your budget. Additionally, you have the option to choose between monthly or biweekly payments, allowing you to align your payment plan with your pay periods for better budget adherence.
SoFi
Minimum income requirements: Not disclosed
Minimum credit score: Not disclosed
Cosigner release: Not available
Loan amount: Ranges from $5,000 up to the total balance
Loan terms: 5 to 20 years
Eligible loan types: Federal (including student and Parent PLUS) and private loans
Eligible degrees: Associate, bachelor’s, and graduate/professional
Allows refinance for non-graduates: No
Fees: No origination, application, or late fees.
Prepayment penalty: No
Fixed interest rate: APR ranging from 3.99% to 9.99% (lowest rates include autopay discount)
Variable interest rate: APR ranging from 6.24% to 9.99% (lowest rates include autopay discount)
SoFi distinguishes itself through a diverse array of membership benefits. Individuals with any SoFi product, such as banking and investment services, personal loans, mortgage loans, credit, and student loans, qualify for membership and enjoy the following advantages:
- Financial planning provided by a non-commissioned fiduciary agent
- Career coaching and financial webinars
- Nationwide member meet-ups and events
- A 15% discount for estate planning through Trust & Will, an online estate planning service
- A points program that is redeemable for cash
Members also receive a 0.125% rate discount off their monthly payment, in addition to the 0.25% autopay discount. SoFi further offers a loan referral program that grants a $300 bonus to both the referrer and the referred individual upon successful loan refinancing with SoFi.