Best Perks

Vault Verified

Variable APR

5.99% – 14.70% (with autopay)

Fixed APR

4.44% – 14.70% (with autopay)

Loan Term

5, 7, 10 or 15 years

Loan Amount

$1,000 up to the total cost of attendance

Why We Chose It

When you sign up with SoFi, you’re eligible to use their members benefits, which include career coaching and unemployment protection. So if you find yourself laid off, you may be able to apply for a hardship forbearance and also get help looking for a new job.

Pros

Prequalify with no effect on your credit

Low starting minimum loan amount

No fees

Cons

Limited co-signer release

Must be employed

Must have an associate’s degree or higher

Best for Large Loan Amounts

Citizens Bank logo

Vault Verified

Variable APR

7.29% – 12.43%

Fixed APR

7.00% – 10.99%

Loan Term

5 to 20 years

Loan Amount

$1,000 – $350,000

Why We Chose It

Citizens Bank offers student loan refinancing for up to $750,000 if you have a professional degree, $500,000 if you have your graduate degree and $300,000 if you have your bachelor’s degree. That makes it a lot easier to consolidate your loans even if you’ve borrowed a large amount for your education. And while the upper ranges of Citizens’ student loan refinancing rates are higher than other lenders, a substantial 0.50% rate reduction is available if you’re already an account holder and sign up for autopay.

Pros

Refinancing available even if you don’t have a degree

No loan fees or prepayment penalties

Repayment terms range from five to 20 years

Cons

No co-signer release for the first three years

Must have at least $10,000 in loans to refinance

Best rates reserved for existing Citizens customers

Best for Income-Driven Repayment

RISLA Logo

Vault Verified

Variable APR

N/A

Fixed APR

5.79% – 8.74% (with autopay)

Loan Term

5, 10 or 15 years for immediate repay

Loan Amount

$7,500 – $250,000 per year

Why We Chose It

The Rhode Island Student Loan Authority (RISLA) lets you borrow between $7,500 and $250,000 per year for refinancing with a set repayment term of 5, 10 or 15 years, depending on whether or not you defer payments while in school. RISLA is also one of the few private lenders offering an income-driven repayment plan to borrowers with financial hardship.

Pros

Payment forbearance options

Zero interest for qualifying nurses

No origination, application, insufficient funds or late fees

Cons

Only two repayment term options

No variable interest rate options

Minimum annual income requirement of $40,000

lendkey logo

Student loan refinancing is when you use a new loan to pay off your current student loans. The new loan usually has a better interest rate or different repayment terms, which can save you money. Student loan refinancing can consolidate multiple loans into one new payment, and you can use it for both federal and private student loans.

When you refinance a student loan, you’ll fill out an application with a new lender. If you’re approved, the new loan will provide funds for you to pay off your existing loans. Then all you need to do is make payments on your new loan. Your new lender may even take care of paying off the old loans for you.

If you have existing student loans and a job, you may be able to apply for a student loan refinance.

Qualifying for a student loan refinance typically requires you to have a steady income, a good credit score and a low amount of debt. If this doesn’t sound like you, you may be able to use a co-signer to help you qualify for a refinance. Some lenders also allow refinancing a parent loan into the student’s name, which can be useful for new graduates who want to take over their student loan payments.

There are usually some requirements you’ll need to meet, which can vary by lender. When comparison shopping for the best student loan refinancing rates, check to make sure you’re eligible to apply, since each lender may have different rules. Also keep in mind that your personal situation may affect the rates you can get.

Here are some common refinancing minimum requirements you may encounter.

Degree: Many lenders offer student loan refinancing only to graduates. If you need help refinancing but haven’t completed your degree, you’ll want to shop around to find a compatible lender.

Income: Lenders typically want to see evidence of a steady job history. You might need to provide pay stubs or bank statements to show you receive a steady paycheck.

Debt: You might have a tough time getting approved for a student loan refinance if you have a lot of debt already. Lenders look at your debt-to-income ratio (DTI) when deciding whether they think you can afford the payment of your new loan. This ratio shows how much debt you have compared to how much you earn. The lower your DTI, the better.

Credit score: Your credit history shows how responsible you’ve been with credit so far. Have you missed any payments or defaulted on other loans? A high credit score shows that you’ve been a good borrower, while a low credit score might worry some lenders.

Co-signer: The good news is that if you need help qualifying for a loan, many lenders will accept a co-signer. A co-signer is someone who agrees to sign for the loan with you, and who will also be responsible for making payments if you can’t.

Once you’ve decided you’re ready to refinance, take the process step-by-step. Begin by getting a feel for your credit, which will help you know which lenders to target when comparison shopping. You’ll also want to check multiple lenders to find the best refinancing rates. Don’t skip this step, or you could miss out on a great rate and wind up paying too much for your new loan.

Here are six steps to follow to refinance your student loan:

Check your credit report: Review your credit report with each of the three main credit reporting bureaus: Equifax, Experian, and TransUnion. Your credit report is free when you use annualcreditreport.com. If you find any errors, report them right away, as they could be dragging down your credit score.

Shop for lenders: Once you have an idea of your credit, compare lenders to find the right fit. Look for lenders that offer competitive interest rates, low or no fees, and terms that work with your budget.

Prequalify for rates: Prequalifying for a student loan refinance will let you see the rates you may qualify for—without taking a hit to your credit. Prequalifying is a “soft” credit check, and it’s a good way to compare offers before you apply.

Fill out the application: Once you’ve chosen a student loan lender, fill out the application. Many places let you apply entirely online; just make sure you have your documents ready, such as bank statements, pay stubs, and loan servicer statements. You’ll also need proof of identity, such as a driver’s license and Social Security number.

Sign your loan documents: After your application is approved, read and sign your loan paperwork and send it back to the lender. You may even be able to electronically sign, which speeds up the process.

Receive your funds: Finally, you’ll receive your funds, often directly to your bank account. Make sure you keep paying your old student loans until you’ve confirmed they have been paid off with the proceeds of the new loan and don’t forget to arrange payment for your new loan as well.