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5 Best Student Loan Refinance Companies
By James F. Trumm MONEY RESEARCH COLLECTIVE
No application fees, origination fees, or prepayment penalties
650
No application, origination, or disbursement fees.
4.99% APR-11.24% APR
4.99% APR-11.14% APR
$200 Best Rate Reward guarantee if you find a better rate (terms and conditions apply)
670
No prepayment penalties, origination, or application fees.
Rates range from 3.99% - 10.15% APR APR
Rates range from 3.69% - 11.11% APR APR
Allows you to combine your student loan debt with your spouse’s
Declined to release publicly
No application, origination, or disbursement fees.
2.89% APR -4.98% APR
N/A
Receive $400 for referring a friend
660
No application, origination, or disbursement fees.
4.99% - 8.90% APR, depending on loan terms
4.99% - 8.90% APR, depending on loan terms
Choose your monthly payment and loan term length with “precision pricing”
660
No application or origination fees
4.20% – 9.99% APR (includes 0.25% autopay discount) APR
5.88% - 9.99% (includes 0.25% autopay discount) APR
Student loan debt is all too common. According to the Federal Student Aid Portfolio Summary published for the first quarter of 2022, 43.4 million people have federal student loans. The overall total of these loans is an astounding $1.6 trillion—and that’s not even counting private loans. With the median full-time salary in the United States currently at about $58,000, many student loan debtors are struggling to make their payments on time.
Fortunately, in the absence of a national student loan forgiveness program, student loan refinancing companies are available to help make repaying these debts more manageable. Whether you need a traditional lender, online lender, a credit union or a company specializing in medical school debt to refinance your loans, you can find a refinancing solution that fits your situation.
What does it mean to refinance student loans?
Student loan refinancing means borrowing money to pay off your old student loans, giving you a single monthly payment, interest rate, and new loan term. In other words, refinancing doesn’t eliminate or reduce your debt, but it can make it easier to manage and reduce the amount of interest on the debt and even give you a lower monthly payment.
There are other options for people who are struggling with student debt. Graduates who’ve earned a higher education degree and work for certain governmental offices or not-for-profit organizations may qualify for the Public Service Loan Forgiveness (PSLF) program. However, students who are not eligible for that program may benefit from the assistance of a student loan refinancing company.
What factors should you consider when choosing a student loan refinance company?
If you choose to refinance your student loans, keep in mind that you’re refinancing to make your life easier. Make sure your lender has a monthly payment, interest rate, and loan term that works for you and your budget.
We’ve studied the student loan industry and picked out the companies that offer the best refinance options in various categories. We hope these selections help you make repaying your student debt less painful.
Our Top Picks for Best Student Loan Refinance Companies
We researched dozens of companies and developed the criteria that enabled us to find the best student loan refinancing lenders for various types of students and graduates. Here are our top picks.
- Credible – Best Student Loan Marketplace
- Splash Financial – Most Affordable Repayment Options for Medical Students
- PenFed – Best Credit Union
- Laurel Road – Best Student Loan Consolidation for Medical Students
- Earnest – Best for Customizing Loan Repayment
Best Student Loan Marketplace: Credible
If you aren’t sure how to start refinancing your student loan, Credible can introduce you to a variety of refinancing options. As a marketplace and not a direct lender, Credible provides loan quotes from up to 10 different refinance lenders—and you only have to fill out one two-minute application.
What makes Credible the best student loan marketplace?
Credible’s lending partners offer low interest rates and loans with good odds of approval. The company also provides a “best rate guarantee” and will send you a $200 gift card if you can find a better deal elsewhere. Their guarantee of customer satisfaction is what led us to choose Credible as the best student loan refinance marketplace.
Additionally, Credible sets itself apart from the competition because it doesn’t do a hard credit check when you apply. That protects your credit history and score. And because their service is free of charge and obligation, there really is no downside to applying. It should be noted, though, that many lenders Credible partners with will nonetheless do a hard credit pull before issuing a loan.
What should you keep in mind when using Credible?
Like all lending marketplaces, Credible has a few drawbacks. The first is that your loan approval is not guaranteed. Each lending partner has its own criteria, and you’ll need to pass their requirements to be approved for your loan refinance.
You’ll also have to research each loan company to determine whether they’re the right fit for you. Credible provides the loan quotes, but you’ll need to determine your best offer based on whether the interest charged is variable or fixed, what the term of the loan is, and other factors that are important to you. Additionally, not all lenders are available in all states, so you’ll have to find one that serves your geographical area.
What companies does Credible partner with?
Credible partners with a variety of lenders for federal and private student loan refinancing, including
- Brazos
- Citizens
- College Ave
- CommonBond
- ELFI
Remember: every lender will provide a quote with their own interest rate and loan term, so review each one carefully before committing to a loan.
Most Affordable Repayment Options for Medical Students: Splash Financial
Splash Financial is a student loan refinance marketplace specializing in dental and medical student loans. With the US medical school debt averaging over $215,000 per student, many recent graduates may want to refinance their student loans in order to make their debt repayment manageable.
The Splash Financial marketplace offers the lowest student loan refinancing rates, and affordable repayment options in the category, thus earning our top pick as the most affordable repayment options for medical students.
Why should medical students consider Splash Financial for student loan refinancing?
If you’re refinancing at least $5,000 in personal or federal student loans, Splash Financial’s lenders can offer you a fixed interest rate as low as 1.74%. Variable interest rate loans are also available. Splash offers a user-friendly application process for undergraduate, graduate and Parent PLUS loans, and—unlike some competitors—allows you to apply without affecting your credit score.
Splash’s lenders let you consolidate undergraduate and medical school debt, which can further simplify recent graduates’ finances and potentially save them money by reducing the amount of interest that must be paid.
What loan terms does Splash Financial offer?
Flexible loan terms are another feature that Splash Financial offers that makes the company stand out from the competition. Their fixed-rate loan term rates range from 5 to 20 years, and the variable rate loan term is 25 years. They also allow student loan consolidation for spouses and loan transfer from parent to child.
One downside of using Splash is that some holders of associate degrees are eligible to refinance up to only $50,000. The company doesn’t impose a maximum loan amount on other types of students, however, so make sure that each lender Splash refers you to can work with your particular situation.
How does Splash Financial help medical and dental students reduce their monthly payments?
Splash Financial specializes in the education loan finance process for medical and dental students, so they know that there must be a low monthly payment and loan deferment during schooling. If you use their program to refinance student loan debt, you can lower your monthly payment to as little as $100 during your residency – and for six months after you finish.
Best Credit Union: PenFed
Pentagon Federal Credit Union (PenFed) offers fixed-rate and variable-rate loan options for students, parents, and married couples. Because PenFed offers more loan options than similar lending institutions, it earned our pick as the best credit union for student loan refinancing.
Who should consider PenFed?
As the second-largest credit union in the US that provides student loan refinancing, PenFed serves most students and graduates. They offer refinancing for up to $300,000 in private loan or federal loan debt and a generous loan term of 5 to 15 years.
Married couples especially may want to consider refinancing their federal loans or private student loans with PenFed, since spouses can refinance their loans together. Where most credit unions require both spouses to have completed at least an undergraduate degree to refinance together, PenFed requires only one spouse to have a bachelor’s degree or above.
If you and your spouse choose to consolidate or refinance, keep in mind that you will obtain the best loan rates if the person with the more advanced degree applies as the primary applicant.
What advantages does a credit union like PenFed have over traditional lenders?
Credit unions generally offer lower rates and better loan terms than traditional lenders. They are generally smaller institutions, so they’re able to be more flexible than large lenders. One disadvantage to using PenFed is that you must be a member to use their refinance service. However, membership requires only a $5 deposit and offers additional advantages to customers, including discounts on various products and services.
Best Student Loan Consolidation for Medical Students: Laurel Road
Laurel Road is a standout resource for medical school debtors who are thinking of refinancing or consolidating their loans. They allow medical professionals in certain fields to consolidate their debts into loans with monthly payments as low as $100—something their competitors generally aren’t able to match.
Thanks to these low rates and payments, Laurel Road earned our top pick for loan consolidation for medical students.
What are the pros and cons of refinancing student loans with Laurel Road?
There are many advantages to working with Laurel Road, including
- No prepayment penalty
- No application fees
- Flexible loan term under 20 years
- Service for undergraduate, health care graduate, and Parent PLUS loans
Laurel Road also allows you to combine multiple federal student loans into one direct consolidated loan so you make only one monthly payment and deal with only one loan servicer.
However, Laurel Road does have a few disadvantages. Because they serve working professionals, not everyone is eligible for their refinancing programs. Although graduate and undergraduate students may refinance loans in their final term of study, they must have a contract or letter of employment. And applicants with associate degrees must have been employed for at least 12 months in a field that matches their program of study.
What are the eligibility requirements for financing your student loans with Laurel Road?
Laurel Road determines its clients’ eligibility based on their credit profile, monthly debt payments and projected income. They focus on certain medical professions, so make sure your field of study is eligible.
How does Laurel Road help medical students reduce their monthly loan payments?
Once you consolidate your medical school loans with Laurel Road, you can lower your payment to as little as $100 per month for up to four years. Their medical school loan program allows you to consolidate federal and private student loans so that you have a single loan payment—and your loan won’t compound interest during your residency.
Best for Parent Borrowers: SoFi
Best for Customizing Loan Repayment: Earnest
Each loan is as unique as its debtor, and many people require customized loan repayment terms to fit their particular financial situation. Luckily, some lenders do offer customizable loan repayment plans for students with large debts or particular needs.
Earnest is the frontrunner in this category thanks to its myriad options for loan term and ideal monthly payment. However, the main reason we chose them as the best company for customizing loan repayment is their unique underwriting approach—something that their competitors don’t offer.
How does Earnest decide whether to grant a loan?
Most student loan refinance companies look at your income, assets, and other debt to design your loan repayment plan. However, the Earnest student loan program takes other factors into account, including
- Degree
- History of on-time payments
- Creditworthiness
- Monthly budget
Instead of focusing only on your current financial profile, Earnest considers your future earning potential to determine an affordable monthly payment and interest rate for you.
What are the benefits of customizing your loan repayment?
Customizing your loan repayment allows you to create a payment plan that fits your budget. Earnest stands out in this category because it offers a “precision pricing” plan, which allows you to set your ideal monthly payment, interest rate, and loan term. Their autopay discount and your ability to skip one payment every 12 months are additional loan benefits.
What are the requirements for refinancing your student loan through Earnest?
Backed by student loan giant Navient, Earnest offers a wide variety of student loan repayment and refinance plans at competitive student loan refinance rates. Their minimum loan requirement is $5,000 (this increases to $10,000 if you live in California), and their minimum income requirement is only $35,000.
There are a few drawbacks, however. Earnest does not allow a cosigner. Additionally, their service isn’t available in Kentucky or Nevada, so citizens of those states need not apply.
Other Student Loan Refinance Companies We Considered
We studied a large number of student loan refinance companies to determine the best in each of our categories. Although we’ve featured our top picks in this article, it’s worth noting some honorable mentions that might be helpful in your search to refinance:
- LendKey – As a marketplace that partners with both banks and credit unions, LendKey can help you find a lender quickly—and getting a loan quote will not affect your credit score or credit report.
- Navy Federal Credit Union – Although its student loan refinance options are only available to military service members and their families, Navy Federal does offer eligible members competitive student loan interest rates.
- CommonBond – Their user-friendly interface provides loan quotes with three interest rate options: fixed-rate, variable-rate or hybrid rate.
- Student Loan Planner – This platform helps customize your repayment plan and offers consultation and advice from industry professionals. It’s particularly helpful if you owe a large amount or are using the Public Service Loan Forgiveness plan.
Student Loan Refinance FAQ
What types of student loans can you refinance?
How do you know whether you should refinance your student loans?
Can you refinance your student loans more than once?
Can you consolidate student loans and credit card debt with the same company?
What is the CARES Act and how has it affected student loans?
Are there any reasons not to refinance your student loans?
How We Chose the Best Student Loan Refinance Companies
We chose the best student loan refinance companies primarily based on their customer service and offerings. Companies that didn’t offer market-beating refinance or payment options like automatic payments didn’t make our final cut.
Summary of the Best Student Loan Refinance Companies for 2022
You and your student loan are unique, and only you can choose the best student loan refinance company for you. We hope that our top picks help you get the best loan refinance for your particular needs:
- Credible – Best Student Loan Marketplace
- Splash Financial – Most Affordable Repayment Options for Medical Students
- PenFed – Best Credit Union
- Laurel Road – Best Student Loan Consolidation for Medical Students
- Earnest – Best for Customizing Loan Repayment
