Best Student Loan Refi Rates
If you’ve got a student loan, there’s a good chance that you’re paying more than your fair share. Student loan interest rates can be significantly higher than those on other types of loans, which means it’s time to shop around for better refi options. Fortunately, there are plenty of great companies out there that can help you get better rates on your federal and private student loans. Here are our top picks for the best student loan refi companies:
Best Overall: SoFi
- SoFi is the best overall student loan refi company.
- SoFi has the lowest rates and fees.
- SoFi has the best customer service and is known for this in the industry.
- SoFi offers a variety of refinancing options so you can customize your loan to fit your needs and budget, including income-driven repayment programs that let you pay less each month while still making progress on your debt overall.
- Their track record speaks for itself: they’ve been around since 2011, were one of the first to offer student loan refinancing, have never had any federal government sanctions (which means they’re doing everything by the book), are backed by veterans through their Vet Loan program, and their customers rate them highly on TrustPilot (a review site).
Best for Low Interest Rates: Citizens Bank
Citizens Bank is a great choice for borrowers looking to refinance their student loans. Like LendKey, it offers fixed rates, but with Citizens Bank you’ll get the lowest interest rates available. If you have good credit and can secure an approval without a cosigner, you won’t find better student loan refinance options anywhere else!
Citizens Bank’s student loan refinance rates start at 3.74%, which is lower than all other lenders’ starting points by over half a percentage point. The best part about Citizens Bank is that your rate won’t increase if you make a mistake during your first year of repayment—you’ll just be charged an additional fee instead of having your interest rate go up (which will happen if one of its competitors finds out about your mistake).
Best for Fewer Fees and Discounts: Earnest
Earnest is a good option if you want to pay less in fees. Earnest is one of the best student loan refinance companies because they don’t charge any application or origination fees, and they offer competitive interest rates. The company also offers lower interest rates and extended repayment plans, which are great for borrowers who want to save money on their monthly payments over time.
Earnest also prioritizes online transparency by providing detailed information about their loans on their website so that borrowers can easily see what their options are before deciding what type of loan makes sense for them.
Best for Loan Borrowers with Cosigners: CommonBond
If you have a cosigner, CommonBond may be your best bet. They’re currently the only lender that offers a cosigner release program, which allows you to release your cosigner after making twelve on-time payments (a total of 36 months). That’s just under four years—a much shorter time period than other lenders require.
If all goes well and you’ve been paying on time for those 36 months, CommonBond will give you access to their lowest rate . If not, they’ll start charging interest from day one.
Best for Simplicity of Application Process: PenFed Credit Union
PenFed Credit Union offers one of the most simple, fast and easy application processes for student loan refinancing. They also have a variety of different types of loans available to you.
The application process is so simple, it’s done entirely online. All you need to do is visit their website and fill out the necessary information about your student loans, including how much money you want to borrow, when you want to start making payments and what rate will work best for you.
Once this information has been provided, PenFed takes care of everything else on their end while they try to get approved based on your eligibility criteria (which are listed below). If they’re able to get approved by underwriting standards set by them as well as federal law regulations (which again are listed below), then they’ll move forward with offering an actual rate quote that’s guaranteed until July 1st 2020 (even though other companies only offer an estimate). If not approved or if there’s some sort of problem during this process due to factors outside anyone’s control such as government shutdowns or acts of nature affecting internet connectivity at certain times then there will be no charge whatsoever..
Best for Borrowers with Multiple Student Loans: Laurel Road
Laurel Road is a good option for borrowers with multiple student loans. Borrowers who have at least three student loans will receive a 0.25% discount on their interest rate, while those with a FICO score of 740 or higher will receive a 0.5% discount. This can add up quickly if you’re paying off several different loans at once!
If you want to refinance your student loans with Laurel Road, check out their website here: https://www.laurelroad.com/studentloans
Best for Fast Applications, Approvals, and Funds Disbursement: College Ave
College Ave has a quick application process, a fast approval process, and even a fast funding process. It’s a great option if you’re looking for something that will get you money quickly and efficiently.
Their customer service is top-notch and their payment process is efficient as well. They have an easy-to-use mobile app and the website itself is very user-friendly.
Best for Income-Based Student Loan Repayments Programs and Shared Accounts with a Spouse or Partner: DRB
DRB is one of the best student loan refinancing options for borrowers who want to take advantage of income-based repayment plans and shared accounts. If you have a decent credit score, a low minimum income requirement, and a low debt load compared to your income, DRB can be an excellent choice for you.
- Income-Based Student Loan Repayment Plans: DRB offers income-based student loan refinancing through one or several different repayment plans depending on the type of student loans you have. For example, if you have federal direct subsidized or unsubsidized loans in addition to private alternative loans (PLUS), then DRB offers both IBR and PAYE options that adjust your monthly payments based on your annual earnings. These programs also forgive balances after 20 or 25 years respectively (depending on which program).
- Shared Account Plans: If you’re married or living with someone else who has higher earnings potential than yours (e.g., family members) then taking advantage of these plans can help lower interest rates through shared accounts such as TEACH Grant Recipients’ Plan II and Income Contingent Repayment (ICR).
Best Refinance Rates When You Have Both Private and Government Student Loans to Refinance : Splash Financial
If you have both private and government student loans, Splash Financial is a great option to refinance your debt. It offers a low interest rate of 1.0%, which is lower than most competitors’. The closing cost is just $0, so it’s easy to get started. Finally, the origination fee is 0%.
Best Refinance Rates Available Beyond 1.0%: EDvestinU
EDvestinU offers the lowest refinance rates. EDvestinU is an online lender that specializes in student loan refinancing. They offer both federal and private student loan refinancing.
Tip: If you have a high balance and high interest rate, EDvestinU may be a good option for you.
Here is a list of the best student loan refi companies.
- American Student Loan Refinance is the only company that provides a $0 origination fee. The interest rate is fixed and locked at 4.15% for the life of the loan. This can be used for federal loans, private loans, or both.
- LendKey offers an interest rate as low as 3.72%, but there is a $500 origination fee to cover all costs associated with getting you into your new loan agreement. It doesn’t matter if you have federal loans, private loans, or both types of student loans; this program will cover them all!
- Earnest Loans has an average interest rate around 4%, but that number can go up based on where you live and other factors such as credit score and debt ratio (total amount owed compared to total income). There may be other fees associated with this refinance program depending on how much money they need upfront before processing your application request, but these fees are usually small compared what other companies charge overall.*
There are many student loan refi companies that could help you save money on your monthly payments and lower your interest rates. However, not all of them offer the same level of service or have access to the same lenders. The best way to find out which one is right for you is to do some research on each one individually so you know what kind of customer service they provide as well as whether or not they work with certain lenders like Sallie Mae or Navient (who offer better rates than other lenders).