What interest rates can I get in student loan refinancing?

Interest rates vary between lenders, but you can usually choose between fixed and variable rates. When comparing lenders, make sure you compare the rates they offer. After all, one reason why borrowers consider refinancing student loans is to get lower rates.

Do I need a co-signer to refinance a student loan?

Having a co-signer is a good idea if you can't meet a lender's eligibility requirements. However, remember that not all lenders offer this option.

When is the best time to refinance a student loan?

Ideally, the earlier you refinance your student loan, the better off you'll be. After all, the sooner you get lower interest rates, the more money you'll save. However, there are other factors to consider, such as your credit score, current income and debt-to-income ratio. Knowing these gives you the best chance of getting lower rates or being able to afford shorter loan terms.

Where can you refinance student loans?

You can refinance your student loan through different private lenders. Traditionally, borrowers approach credit unions and banks. These days, online lenders also offer student loan refinancing.

Is it possible to refinance after consolidating a student loan?

Yes, you can refinance consolidated student loans. This applies for private student loans and federal ones.

What can I do if I can’t qualify for a student loan refinance?

You can apply with a co-signer if you don't qualify for a refinance on your own. However, it's best to understand why you didn't qualify in the first place, which gives you a better idea of what you need to improve. For example, if you need a higher credit score, you can begin taking steps to improve it.

Are there fees involved in student loan refinancing?

Usually, lenders don't charge origination or application fees when you're refinancing your student loan. Some don't apply a prepayment penalty even if you pay your loan early. However, nothing beats reading the fine print of your loan agreement. This way, you'll know whether you need to watch out for any fees.

The Best Student Loan Refinance Options for 2023

Student loan refinancing is when a lender pays off your debt by issuing you a new loan. It can be an effective debt management strategy because you may get better interest rates or shorter loan terms — both of which could allow you to save money in the long run.

MoneyGeek analyzed several lenders to help you find the best student loan refinance option for your specific needs. These are private lenders, and the order in which they're presented doesn't indicate their ranking. So, if the first lender doesn't appeal to you, don't hesitate to check out the others on our list.

Key Takeaways

Refinancing your student loan debt often allows you to find lower interest rates and shorter repayment terms. You can also combine several student loans into a single one through refinancing. All these can help make your student debt more manageable.

Several financial institutions, such as banks and credit unions, can refinance your student loan. You can even refinance through an online lender.

There are several excellent options to refinance your student loan. Examples are Sofi, Discover and RISLA.

WHAT WE’RE GEEKING OUT ON:

Citizens Bank Review
SoFi Review
Discover Review
Earnest Review
PNC Bank Review
Laurel Road Review
Rhode Island Student Loan Authority (RISLA) Review
How to Find the Best Student Loan Refinance Option
Frequently Asked Questions About Student Loan Refinance

Citizens Bank Review

Citizens Bank
- 3.48%–10.78%Fixed APR Range
- 1.99%–8.39%Variable APR Range
- Up to $150,000Loan Amounts
- Six monthsGrace Period
- Only for some borrowersCo-signer
Although it's best to refinance your student loan as early as possible to maximize your potential savings, Citizens Bank may not be the best option for college students (or those who recently graduated). It doesn't specify a minimum credit score requirement, but its eligibility requirements indicate that you must have good credit standing and a strong credit history to qualify.
Realistically, not all young adults can meet that criterion. And that leaves them at the higher end of the APR spectrum. With interest exceeding 11% for fixed and variable rates, you can find more competitive rates with other lenders, even if your credit score isn't stellar.
However, Citizens does allow you to have a cosigner, which could improve your chances of getting your refinance with more competitive rates. It also offers multiple discounts and multi-year approval.
Pros
Widely available
Conducts a soft credit inquiry when checking rates
Offers multi-year approval
You can lower your interest by 0.5% through AutoPay and Loyalty Rewards
International students can refinance their student loans if they have a U.S. citizen or permanent resident co-signer

Cons
The highest possible APR is over 11%
The minimum loan amount is $10,000
Requires a good credit score and a strong credit history
Fixed APR Range: 3.48%–11.34%
Variable APR Range: 1.99%–6.95%
Loan Amounts: For undergrad and grad degrees, up to $150,000 or the total cost of education, whichever is lower
Grace Period: Six months
Co-signer: Yes

SoFi Review

SoFi
- 3.22%–11.16%Fixed APR Range
- 1.10%–11.68%Variable APR Range
- $5,000 minimum, no maximumLoan Amounts
- Deferment until six months after graduationGrace Period
- OptionalCo-signer
SoFi has over 350,000 members who have refinanced their student loans using its services. And you can understand why — when it began operations in 2011, student loan refinancing was its first financial product. Now, SoFi remains one of the best options for student loan refinancing.
If you undergo financial hardship while repaying your loan, SoFi offers some repayment benefits and options, such as repayment postponement and loan discharge.
A good credit score will help you get the best rates, and you can reduce them further by signing up for AutoPay. If you can't meet the eligibility requirements, you may be able to apply with a co-signer. However, it's not something you should get into lightly because you must make 24 consecutive on-time payments before requesting a release for your co-signer.
Pros
Offers a 0.25% discount on your interest if you sign up for AutoPay
Available in all 50 states and Washington, D.C.
No application or origination fees
No prepayment penalty
Rate checking doesn't affect your credit score

Cons
Requires borrowers to be employed or have an employment offer within 90 days of your application
Requires the borrower to have a good credit score
Charges a $10 late payment fee or 5% of the overdue amount, whichever is lower
Fixed APR Range: 3.22%–11.16%
Variable APR Range: 1.10%–11.68%
Loan Amounts: $5,000 minimum, no maximum
Grace Period: Deferment until six months after graduation
Co-Signer: Optional

Discover Review

Discover
- 3.99%–11.59%Fixed APR Range
- 1.79%–11.09%Variable APR Range
- $1,000 up to 100% of college expensesLoan Amounts
- Six monthsGrace Period
- OptionalCo-signer
Discover proves to be very understanding with their borrowers. Besides not charging a fee for origination and prepayment, it doesn't apply a penalty for late payment.
What sets it apart, however, is the support it provides borrowers who may have challenges making their monthly payments. Discover offers the following payment assistant options:
Deferment
Early repayment
Payment extension
Reduced payment
Forbearance
Hardship
Of course, you must meet specific criteria to be eligible for these, but it's good to know that you have options.
However, no matter the quality of Discover's support once you've signed your loan agreements, the bigger question is whether they will approve your application. With no pre-qualification tool and an undisclosed credit score requirement, it's challenging to estimate whether or not you qualify for a refinance.
Pros
No fees, whether application, origination or late payment
Reduces interest rate by 0.25% if you sign up for Auto Debit
Allows you to apply with a co-signer
No prepayment penalty
Allows you to defer payments for either three or five years, depending on the reason

Cons
Does not have a tool for pre-qualification
No option for co-signer release
An undisclosed minimum credit score requirement
Fixed APR Range: 3.99%–11.59%
Variable APR Range: 1.79%–11.09%
Loan Amounts: $1,000 up to 100% of college expenses
Grace Period: Six months
Co-signer: Optional (unless an international student)

Earnest Review

Earnest
- 2.44%–7.99%Fixed APR Range
- 1.74%–7.99%Variable APR Range
- $1,000 upLoan Amounts
- Deferment until 9 months after graduationGrace Period
- AllowedCo-signer
Despite its benefits, Earnest has a considerable drawback for those exploring options to refinance their student loans — its availability. You'll have limited interest rate options if you're in Arkansas, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas. You can only get fixed rates in those states since variable ones (which are often lower) aren't available. Earnest doesn’t offer refinance options in Kentucky and Nevada at all. If you’re in California, your minimum refinance amount is $10,000.
But if Earnest refinancing is available in your area, you can expect multiple benefits. Borrowers who prefer to make more frequent payments can choose a bi-weekly payment option, which might make managing your monthly budget easier since you're looking at shorter periods.
Earnest also allows you to customize your monthly payment. Instead of asking you to choose between several options, it takes a different approach. You can use their tool to determine how much you can afford to pay each month, and Earnest calculates your loan term based on that.
Pros
Conducts a soft credit pull when you check rates
Offers a 0.25% AutoPay discount
Allows you to skip a payment once every 12 months
Offers monthly or bi-weekly payment options
No origination, late or prepayment fees

Cons
Borrowers from Arkansas, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas do not have variable-rate option
Does not offer refinance options in Kentucky and Nevada
Requires a minimum credit score of 650
Fixed APR Range: 2.44%–7.99%
Variable APR Range: 1.74%–7.99%
Loan Amounts: $1,000 up to the total cost of attendance
Grace Period: Deferment until 9 months after graduation
Co-signer: Allowed

PNC Bank Review

PNC
- 2.99%–9.89%Fixed APR Range
- 1.09%–8.19%Variable APR Range
- $1,000–$50,000Loan Amounts
- Six monthsGrace Period
- AllowedCo-signer
Although PNC doesn't disclose its minimum credit score requirement, it's safe to assume that borrowers with very good to excellent credit scores can qualify for refinancing. They can also take advantage of PNC Bank's interest rates. Even with a 20-year repayment term, you can still get a rate lower than 4%.
However, if your credit standing is less than ideal, that doesn't mean you can't get competitive rates. You can apply with a co-signer, who you can release once you've worked on improving your credit score. Unlike other lenders, PNC has a co-signer release program in place. But you must complete 48 consecutive payments (all made on time) before it is available to you.
Pros
Offers a 0.5% rate discount if you set up automated payments
No application and origination fee
No prepayment penalty
Has a process for co-signer release
Forgives outstanding debt if the borrower dies

Cons
20-year repayment terms are only for undergraduate or graduate degrees (with a minimum loan amount of $75,000)
Forbearance and deferment are not available
Charges a late fee — 5% of the past due amount or $5, whichever is lower
Fixed APR Range: 2.99%–9.89%
Variable APR Range: 1.09%–8.19%
Loan Amounts: $1,000–$50,000 ($225,000 aggregate limit)
Grace Period: Six months
Co-signer: Allowed

Laurel Road Review

Laurel Road
- 4.03%–9.01%Fixed APR Range
- 1.49%–8.09%Variable APR Range
- $2,000 up to the cost of attendanceLoan Amounts
- Six monthsGrace Period
- OptionalCo-signer
Laurel Road offers multiple benefits to borrowers who consider it an option to refinance their private student loan. It's a solid option for those who want to maximize the various financial products they offer.
For example, you can lower your interest rate further by opening and maintaining a checking account with the lender. Laurel Road also has a student loan cashback card. It allows you to redeem 2% cashback from eligible purchases and use it to repay your debt.
Borrowers who make their monthly payments on time benefit most. Laurel Road is a stickler for on-time payments, considering the late fee and return payment penalty it applies. These amounts may be small but can quickly eat away at your funds.
Pros
Gives a 0.25% discount if you enroll in AutoPay
You can get lower rates (on top of the AutoPay discount) if you open a checking account
Allows you to apply with a co-signer
Does a soft credit inquiry when you check your rates
No prepayment penalty

Cons
Loan amount for eligible Associate degrees in healthcare is capped at $50,000
Charges a late fee of $28 or 5% of the required payment
Returned payment due to non-sufficient funds come with a $20 penalty
Fixed APR: 4.74% to 7.15%
Variable APR: 2.75% to 7.05%
Loan Amount: $5,000 to 100% of outstanding student debt
Repayment Terms: 5, 7, 10, 15 and 20 years
Minimum Credit Score: 660

Rhode Island Student Loan Authority (RISLA) Review

Risla
- 2.99%–4.74%Fixed APR Range
- Not availableVariable APR Range
- $1,500–$150,000Loan Amounts
- 15 days to six monthsGrace Period
- Not required if borrower meets qualificationsCo-signer
RISLA can be an excellent option to refinance your student loan, especially if you work, live or completed your education in Rhode Island. Although it accepts applications from borrowers from all states, those with ties to the Ocean State often enjoy lower rates.
You can find several programs that focus on protecting you against unfortunate situations. For example, RISLA offers forbearance during times of hardship, so you don't have to worry about making payments if you're already under financial stress. It also has an income-based repayment option and forgives the debt if you are permanently disabled (or worse).
That said, you may find its requirements too stringent. You must have an annual income of at least $40,000 to qualify for a refinance. If there are eligibility requirements that you don't meet, applying with a co-signer could help. However, ensure the co-signer is someone you trust because RISLA does not have a co-signer release program.
Pros
Offers two repayment options — immediate or deferred
Automatic monthly payments qualify you for a 0.25% rate reduction
No application or origination fees
Conducts a soft credit inquiry when you check your rates
Offers borrower protection

Cons
Only one term for deferred repayment
High income requirement
Fees include a 6% penalty for late payment and $10 for a returned check
Fixed APR Range: 2.99%–4.74%
Variable APR Range: Not available
Loan Amounts: $1,500–$45,000 per year to a maximum of $150,000 per borrower
Grace Period: 15 days after disbursement for immediate repayment and six months after leaving school for deferred repayment
Co-signer: Not required if borrower meets qualifications

How to Find the Best Student Loan Refinance Option

Knowing how to refinance your student loan can help you make the right decision for your needs. MoneyGeek outlined several steps to guide you through the process from comparing potential lenders to preparing the necessary paperwork.

Compare lenders

MoneyGeek's private student loan refinance options are recommendations, so don't hesitate to consider other options. When comparing lenders, ensure you factor in the elements that may make repayment less challenging. These include APRs, loan terms, fees and penalties.

It's also best to look into some features that may come in handy. For example, SoFi allows a 24-month forbearance, which not all lenders offer.

Get pre-qualified

One way to see how manageable a refinance would be for you is by getting pre-qualified. This will give you an idea of how much interest a lender is willing to offer based on your personal and financial information.

Fortunately, most lenders only do a soft credit pull during pre-qualification, which means it won't affect your credit score. This way, you'll know how much you'll need to pay each month and if it fits your budget.

Choose a lender and apply

Comparing lenders allows you to narrow your options, making finding the best deal more likely. Once you identify your preferred lender, you can pursue your application.

Submit necessary documents

When you're trying to refinance a student loan, you'll need to submit several documents to your lender. These usually include the following:

Proof of employment
A government-issued ID
Your transcript or diploma
Proof of residency
Documents for your existing student loan

Remember that requirements vary between lenders. It's best to confirm whether or not you should prepare other documents.

Complete your application and make payments

Once you've gathered everything you need to submit, wait for your lender's decision.

Remember, when you refinance your private student loan, you'll have a different monthly payment and a new due date. It might take a little getting used to — you may want to set reminders to ensure you don't miss any.

Frequently Asked Questions About Student Loan Refinance

MoneyGeek answered common questions about how to refinance student loans to help you decide whether or not it's the best move for you.

sources

Citizens. "Education Refinance Loan Repayment Examples." Accessed October 27, 2022.
Citizens. "Refinance Your Student Loans." Accessed October 27, 2022.
Citizens. "Refinancing Student Loans — FAQs." Accessed October 28, 2022.
Citizens. "Student Lending Disclosures." Accessed October 28, 2022.
Discover. "Consolidate Your Student Loans." Accessed October 27, 2022.
Discover. "Repayment Assistance Options." Accessed October 28, 2022.
Earnest. "Eligibility Guide." Accessed October 27, 2022.
Earnest. "Refinance Student Loans." Accessed October 27, 2022.
Earnest. "What is the Minimum and Maximum Student Loan Balance Earnest can Refinance?." Accessed October 27, 2022.
Earnest. "Who Should Consider Refinancing with Earnest?." Accessed October 27, 2022.
Earnest. "What Does It Mean That I Can Set My Own Monthly Payment?." Accessed October 27, 2022.
Laurel Road. "Refinancing Plus Laurel Road Linked Checking." Accessed October 28, 2022.
Laurel Road. "Refinance Student Loans." Accessed October 28, 2022.
PNC. "Student Refinance Loans." Accessed October 28, 2022.
RISLA. "Refinancing Education Loans." Accessed October 28, 2022.
RISLA. "Refinance Loans." Accessed October 28, 2022.
RISLA. "FAQ for Refinance Loans." Accessed October 28, 2022.
SoFi. "Frequently Asked Questions — Student Loan Refinance." Accessed October 27, 2022.
SoFi. "Info Center." Accessed October 27, 2022.
SoFi. "Student Loan Refinancing." Accessed October 27, 2022.
SoFi. "Eligibility Criteria." Accessed October 27, 2022.

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