Best Lenders To Refinance Student Loans of 2024

Refinancing your student loans opens the door to a number of potential benefits, from simplified monthly payments to the chance of a lower interest rate. To make refinancing worth your while, however, it's important to shop around and compare the different lenders offering student loan refinancing.

Once you're familiar with your options (as well as your own financial situation), you can better determine if it's in your best interest to refinance your student loan debt.

Compare student loan refinancing rates

Best student loan refinancing lenders

Factors like your credit, income, and existing debt all impact the exact refinancing terms you receive — and each lender has a different way of analyzing your application. 

If possible, prequalify with a few lenders before submitting an application. By prequalifying, you can see the estimated rates and terms you’re likely to qualify for, often with only a soft credit check that won’t affect your score. This can give you a better idea of what each lender may offer and help you find the best loan for your situation.

Other lenders to consider

If the options above don’t fit your needs, see what these lenders can provide:

• SoFi: This online lender offers competitive fixed and variable interest rates with absolutely no fees. There are also specialized refinance loans for parents, health professionals, lawyers, and more. But what really makes SoFi shine is its extra benefits for members: Borrowers can access free financial planning, career coaching, and discounts on flights and hotels. 
• Laurel Road: With fixed and variable rates available, along with loan terms from 5 to 20 years, you can customize your loan to fit your needs. Borrowers who link a Laurel Road checking account and meet deposit requirements can also access lower refinancing rates. You can schedule a free consultation with a student loan specialist to compare your options.
• Discover: If you prefer to work with a major bank, Discover is one of the few that offers student loan refinancing. Borrowers who are still in school are eligible to refinance, something that’s not commonly offered by other lenders. And if you later need to pause your payments, you can do so if you experience financial hardship, return to school, serve in the military, or meet other criteria.

Methodology

We evaluated these student loan refinancing lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

How to compare student loan refinance options

When comparing your loan options, it can be tough to know which factors are most important. Here’s what to review for each loan offer you receive:

• Annual percentage rate (APR): This is what the lender charges to loan you money. Make sure you understand the difference between the APR and simple interest rate: While the simple interest rate only includes interest costs, the APR factors in the interest plus other borrowing costs, such as an origination fee.
• Loan terms: This is how long you have to repay your debt. A longer term generally results in smaller monthly payments but higher total interest costs. Many lenders offer options between 5 and 20 years, but some only have 2 or 3 terms to choose from.
• Loan amounts: Lenders often instate minimum and maximum amounts they're willing to refinance. Make sure the companies you review offer the amounts you need.
• Eligibility requirements: In addition to meeting credit and income standards, lenders may also require you to be a U.S citizen or permanent resident, live in an eligible state, or have certain types of loans. Many lenders also require that you graduated with your degree, though some will work with borrowers who didn’t complete their education. 
• Cosigner policies: If you plan to use a cosigner, review each lender’s rules. See if releasing the cosigner later is an option, and what requirements you must meet to do so. 
• Fees: Review the other expenses that may come with your loan. Most lenders don’t charge upfront costs such as application or origination fees, but some might. Also compare late fees, returned payment fees, and similar costs.
• Discounts and rewards: Most lenders offer a rate discount of 0.25 percentage points when you enroll in autopay, but there may be other perks available, too. Look for things like loyalty discounts for existing customers, lower rates for residents of certain states, and refer-a-friend programs, all of which can save you money on your student debt.
• Hardship options: If you later have trouble making payments, what programs does the lender have to help? Some offer forbearance programs if you’re unemployed or experience a natural disaster, while others may allow you to skip one payment a year or adjust your due date as needed.
• Membership benefits: Some companies offer unique perks to entice customers. Your loan might come with free access to a finance professional, career planning resources, or other specialized services. 

Should you refinance your student loans?

You'll need to weigh more than just your options in lenders before moving forward with student loan refinancing. It's also important to consider the pros and cons of refinancing to ensure it's really the right path forward for you.

Refinancing your student loans might make sense if doing so could lead to savings. This might be the case if you currently have a high interest rate — particularly if it's a variable rate, which can be unpredictable. Additionally, if your financial situation has improved since you took out your loans or the interest rate environment is strong, then refinancing might be worth pursuing. 

If you have federal student loans, however, exercise caution before refinancing. Refinancing federal student loans will cause you to lose access to federal protections and benefits, such as student loan forgiveness, income-driven repayment, and flexible deferment or forbearance.

You might also think twice before refinancing if your current financial situation is rocky or you’re behind on payments. Refinancing in those situations will likely result in you ending up with a higher interest rate.

5 steps to refinance your student loans

If you decide that refinancing is right for you, here's a look at how to refinance student loans.

1. Check your credit

Before you start looking at lenders, take a peek at your own credit. Generally, you'll need a FICO score in the mid- to high-600s to refinance your student loans — but the higher your score, the lower the rate you're likely to qualify for.

If you realize your credit isn't where it needs to be, take some time to improve your credit score before applying. Or, consider adding a cosigner to your application who has excellent credit. 

It can also be helpful to review your current student loan status, including whether you have private or federal student loans, who your loan servicer is, and what your current interest rates are. Consider what your goals are for refinancing, whether that's simply streamlining repayment or locking in a lower interest rate or smaller monthly payment.

2. Shop around and compare lenders

Next up, you'll want to start perusing your options. Review and compare different lenders using the criteria discussed above. It may be helpful to use a spreadsheet or other strategy to track this data and keep the details straight. 

3. Get prequalified

While not a mandatory part of the student loan refinancing process, getting prequalified can give you a sense of whether you might be approved by a lender and, if so, what rate it may offer you. All you have to do is provide some basic information about yourself and the lender will show your estimated rates and terms. 

Unlike the formal application process, this is usually completed with a soft credit check and won't have an impact on your credit. But remember that a prequalification is just an estimate, and there's no guarantee of approval or the rates you’ve been quoted. You must submit a full application to see the lender’s finalized offer.

4. Submit an application

Once you’ve analyzed your options and selected your top lenders, it's finally time to apply for student loan refinancing. The application typically asks about your current loans, education, employer, and financial situation. 

You may be asked to provide the following documents:

• Driver's license or other government-issued ID
• Student loan statements
• Proof of graduation
• Proof of U.S. citizenship or permanent residency
• Proof of employment, like a W-2 or recent pay stubs

You'll also need to authorize a hard credit pull to complete your application. This can result in a small, temporary dip in your credit score, but it's a necessary part of the process.

5. Start payment on your new loan

If your application is approved, you’ll have to complete some final tasks, such as selecting your loan term and signing paperwork. From there, your new lender will work with your existing loan servicers to pay off your debt. 

Once complete, you'll receive instructions for making payments to your new lender. However, continue making payments on your old loans until you’ve received confirmation that they’re paid off and the account has been closed. 

Student loan refinance FAQ

What are the eligibility requirements to refinance?

Exact eligibility requirements vary by lender. However, you'll typically need a FICO score in the mid- to high-600s to qualify for student loan refinancing (or include a cosigner with strong credit on your application). 

You'll generally also need to have proof of sufficient income, be a U.S. citizen or permanent resident, and either be a current student or graduate of an eligible school.

When should you refinance student loans?

You might consider student loan refinancing if you can qualify and if doing so could result in savings or other benefits, such as lowering your monthly dues to a more manageable amount.

What are the risks of refinancing student loans?

Perhaps the biggest risks of refinancing come with federal student loans. When you refinance federal loans, you'll lose access to federal repayment plans, protections, and other benefits. Refinancing is permanent and irreversible, so it’s wise to proceed cautiously.

Can student loans be forgiven after refinancing?

No, when you refinance student loans, you lose access to federal benefits — including student loan forgiveness programs. However, refinanced loans may qualify for repayment assistance programs, including employer-sponsored help with payments.