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Best Student Loan Refinance Companies

The best student loan refinance company is the one that offers you the lowest interest rate.
Written by
Grace Lemire
Last Update on Aug 10, 2023

Companies like Earnest, Laurel Road, and PNC Bank provide some of the best refinancing options.

Takeaways
  • Student loan refinancing is the process of borrowing a new loan with better terms to pay off a previous loan.
  • Lenders like Earnest, Laurel Road, and PNC Bank offer low-interest rate options.
  • Lenders like Discover and Citizens Bank provide strong options for borrowers that didn’t graduate.
  • Consider the risks associated with refinancing federal student loans before doing so.

Best Student Loan Refinance Companies

LenderBest For…Fixed APRVariable APRMin. Credit Score
Citizens BankBorrowers that didn’t graduate or those that are already Citizens customers5.40% to 10.65%6.50% to 11.85%Does not disclose
DiscoverBorrowers that didn’t graduate5.99% to 10.49%6.87% to 10.62%Does not disclose
EarnestBorrowers looking to refinance high student loan balances4.96% to 8.99%5.15% to 8.94%680
Laurel RoadBorrowers that would like to refinance as early as possible4.24% to 8.45%4.49% to 8.35%Does not disclose
MEFABorrowers with steady income and no degree5.50% to 8.45%N/A670
PenFed Credit UnionSpouses that would like to combine their student debt into a single loan7.74% to 9.93%N/A670
PNC BankBorrowers with small loan balances and no degree4.79% to 14.54%5.14% to 14.89%Does not disclose
RISLABorrowers seeking income-based repayment5.79% to 8.24%N/A680
SoFiStrong member benefits4.99% to 9.99%5.74% to 9.99%650
Splash FinancialCompetitive interest rates4.96% to 9.99%4.74% to 9.99%650
Best for Borrowers that Didn’t Graduate or Those that Are Already Citizens Customers

Citizens Bank

Auto Debit Discount
Up to 0.50% for Citizens customers
Borrowing Minimum and Maximum
$10,000 minimum; $300,000 maximum
Degree Required?
No
Fixed APR
5.40% to 10.65%
Variable APR
6.50% to 11.85%
Minimum Credit Score
Does not disclose
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Citizens Bank offers student loan refinancing with decent interest rates and flexible repayment terms of 5, 7, 10, 15, or 20 years. If you opt to add a cosigner, you’ll be able to release them after 36 on-time payments.

Pros

  • Available to borrowers that didn’t graduate
  • Auto debit discount of up to 0.50%
  • Several repayment terms to choose from

Cons

  • Higher borrowing minimum than some competitors
  • Hardship forbearance is available, but only on a case-by-case basis
  • Unclear credit score requirements
Additional Details

Citizens Bank requires a minimum income of $24,000 for the borrower and cosigner combined. If you don’t surpass that minimum, you’ll want to consider another lender.

Best for Borrowers that Didn’t Graduate

Discover

Auto Debit Discount
0.25%
Borrowing Minimum and Maximum
$5,000 up to the total student debt balance, for certain degree types
Degree Required?
No
Fixed APR
5.99% to 10.49%
Variable APR
6.87% to 10.62%
Minimum Credit Score
Does not disclose
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Discover provides a competitive refinancing offer for borrowers that did not obtain a degree. However, they only offer two loan repayment terms of 10 or 20 years and don’t offer cosigner release, which is less flexible than some competitors.

Pros

  • Available to borrowers that didn’t graduate
  • Auto debit discount up to 0.25%

Cons

  • Higher interest rates than some competitors
  • Only offers two loan terms of 10 or 20 years
  • No cosigner release
Additional Details

Discover does not disclose credit or income requirements, and you’ll need to complete a formal application to see what you’ll qualify for. This will result in a hard credit check, which can temporarily impact your credit score.

Best for Borrowers Looking to Refinance High Student Loan Balances

Earnest

Auto Debit Discount
0.25%
Borrowing Minimum and Maximum
$5,000 ($10,000 for California residents) up to $500,000
Degree Required?
No
Fixed APR
4.96% to 8.99%
Variable APR
5.15% to 8.94%
Minimum Credit Score
680
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Earnest offers an incredibly competitive refinance loan, complete with lower-than-average interest rates, flexible repayment terms, and clear eligibility criteria.

Borrowers can refinance just about any loan type, including private parent loans and federal Parent PLUS loans.

Pros

  • Competitive interest rates
  • Auto debit discount of 0.25%
  • Ability to choose any repayment term between five and 20 years
  • Ability to refinance parent and Parent PLUS loans
  • Available to borrowers that didn’t graduate

Cons

  • Must meet a list of criteria, including having at least two months’ worth of expenses saved
  • No cosigner release policy
Additional Details

Earnest requires borrowers to either:

  • Have graduated from a Title IV accredited school, or;
  • Have completed a portion of a program, and meet other criteria.
Best for Borrowers that Would Like to Refinance as Early as Possible

Laurel Road

Auto Debit Discount
0.25% for the first three months
Borrowing Minimum and Maximum
$5,000 minimum; no maximum for all degree types except associate’s degree graduates, who have a $50,000 maximum
Degree Required?
Yes
Fixed APR
4.24% to 8.45%
Variable APR
4.49% to 8.35%
Minimum Credit Score
Does not disclose
Show More Details

Laurel Road offers student loan refinancing for specific degree types and professions, with the ability to refinance as early as your final semester in school. Borrowers can refinance standard loan types, like federal and private, as well as Parent PLUS loans.

Unlike some other lenders, Laurel Road does offer refinancing for associate’s degree graduates. However, it is only available to certain professions.

Pros

  • Competitive interest rates
  • Cosigner release after 36 months
  • Ability to refinance Parent PLUS loans in your own name

Cons

  • Unclear credit requirements
  • 0.25% auto debit discount requires a Laurel Road Linked Checking Account after the introductory offer
  • Associate’s degree loan refinancing is only available to certain professions
Additional Details

Laurel Road offers an introductory 0.25% auto debit discount offer for the first three billing cycles. After that, the auto debit discount is based on the amount deposited into your Laurel Road Linked Checking Account.

That said, if you’re receiving deposits greater than $7,500 per billing cycle, you can get up to 0.55% in auto debit discounts.

Best for Spouses that Would Like to Combine Their Student Debt Into a Single Loan

MEFA

Auto Debit Discount
None
Borrowing Minimum and Maximum
$10,000 minimum; no maximum
Degree Required?
No
Fixed APR
5.50% to 8.45%
Variable APR
N/A
Minimum Credit Score
670
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MEFA, or the Massachusetts Educational Financing Authority, offers competitive interest rates and doesn’t require borrowers to have graduated. However, they don’t offer an auto debit discount or cosigner release, and you’ll only have three repayment term options — 7, 10, or 15 years.

Pros

  • Competitive interest rates
  • Available to borrowers that didn’t graduate

Cons

  • No cosigner release option
  • No variable interest rate option
  • No auto debit discount
  • Few repayment term options
Additional Details

MEFA requires a minimum income of $24,000.

Best for Spouses that Would Like to Combine Their Student Debt Into a Single Loan

PenFed Credit Union

Auto Debit Discount
PenFed offers discounts to Pentagon Federal Credit Union members, but it is unclear what those discounts are.
Borrowing Minimum and Maximum
$7,500 up to $300,000
Degree Required?
Yes
Fixed APR
7.74% to 9.93%
Variable APR
N/A
Minimum Credit Score
670 with a cosigner; 700 without a cosigner
Show More Details

While PenFed’s interest rates are higher than some competitors, and they don’t offer a variable rate option, they do allow spouses to refinance their student debt into a single loan — something most lenders don’t offer. They also allow borrowers to refinance Parent PLUS loans in their own name.

Pros

  • Allows spouses to combine their student debt into a single loan
  • High borrowing maximum
  • Cosigner release after 12 months of consecutive, on-time payments

Cons

  • Higher interest rates than some competitors
  • No variable interest rate option
  • Higher borrowing minimum than some competitors
Additional Details

PenFed’s cosigner release policy is shorter than most competitors. After just 12 months of consecutive, on-time payments, your cosigner can be released.

Best for Borrowers with Small Loan Balances and No Degree

PNC Bank

Auto Debit Discount
0.50%
Borrowing Minimum and Maximum
$10,000 to $75,000; higher maximum for certain degree types
Degree Required?
No
Fixed APR
4.79% to 14.54%
Variable APR
5.14% to 14.89%
Minimum Credit Score
Does not disclose
Show More Details

PNC Bank offers competitive interest rates and a higher-than-average auto debit discount of 0.50%. They also work with borrowers that did not obtain a degree, although you’ll need to have made at least 24 payments on your current loan to qualify.

Pros

  • Competitive interest rates
  • High auto debit discount of 0.50%
  • Available to borrowers that didn’t graduate

Cons

  • Low borrowing maximum compared to some competitors
  • Unclear credit score requirements
  • Cosigner release requires 40 months of payments, which is more than some competitors
Additional Details

PNC Bank offers four loan terms — 5, 10, 15, and 20 years — although the 20-year repayment term is reserved for borrowers with loan balances higher than $75,000.

Best for Borrowers Seeking Income-Based Repayment

RISLA

Auto Debit Discount
0.25%
Borrowing Minimum and Maximum
$7,500 to $250,000, depending on the degree type
Degree Required?
No
Fixed APR
5.79% to 8.24%
Variable APR
N/A
Minimum Credit Score
680
Show More Details

RISLA, the Rhode Island Student Loan Authority, offers refinance loans with competitive interest rates and repayment terms. They do not, however, offer a variable interest rate option or cosigner release.

Pros

  • Offers an income-based repayment option
  • High borrowing limit
  • Auto debit discount of 0.25%

Cons

  • No variable rate option
  • No cosigner release
  • No variable rate option
Additional Details

RISLA has a minimum income requirement of $40,000. If you don’t meet that threshold, you’ll need to consider another lender.

Best for Strong Member Benefits

SoFi

Auto Debit Discount
0.25%
Borrowing Minimum and Maximum
$5,000 up to the total outstanding balance
Degree Required?
Yes
Fixed APR
4.99% to 9.99%
Variable APR
5.74% to 9.99%
Minimum Credit Score
650
Show More Details

SoFi offers competitive interest rates and strong benefits for members, but they lack a cosigner release option. They are, however, available to associate’s degree holders and don’t have a borrowing limit.

Pros

  • Available to associate’s degree graduates
  • Competitive interest rates
  • SoFi customers get additional benefits, such as 0.125% discounts on SoFi products
  • No borrowing limit of refinance loans

Cons

  • No cosigner release
Additional Details

SoFi offers their Unemployment Protection Program to all borrowers, which allows you to pause payments in three-month increments for up to 12 months if you’re laid off from work. Members also get access to free career coaching, financial advice, and more.

Best for Competitive Interest Rates

Splash Financial

Auto Debit Discount
Depends on the lender
Borrowing Minimum and Maximum
$5,000 up to $500,000
Degree Required?
Yes
Fixed APR
4.96% to 9.99%
Variable APR
4.74% to 9.99%
Minimum Credit Score
650
Show More Details

Splash Financial is a lender marketplace that allows you to compare loan offers from various credit unions and banks. Because of that, loan details and requirements may vary depending on the specific lender you work with.

Pros

  • Competitive interest rates
  • High borrowing limit

Cons

  • Borrowers must have graduated with an associate’s degree or higher to refinance
Additional Details

Splash Financial doesn’t disclose the minimum income needed to qualify. However, the typical income of an approved borrower is over $80,000, which is high in comparison to competitors.

Frequently Asked Questions (FAQs)

Does Refinancing Hurt Your Credit?

Refinancing will temporarily lower your score. This is because lenders will need to conduct a hard credit check to determine your loan terms. After a short period of time, however, your credit score should recover.

Are There Any Risks Of Refinancing?

There are no risks involved in seeing what refinance loan you may qualify for. During this portion of the process, lenders typically conduct a soft credit check, which doesn’t impact your score.

If you plan to refinance private student loans…
After seeing what you qualify for, you can determine whether you’d like to submit a formal application to borrow the loan, which will then impact your score.

If you plan to refinance federal student loans…
There may be risk involved in refinancing federal student loans. Federal student loans have certain protections that private student loans do not. They are also eligible for forgiveness.

If you refinance federal student loans, you will lose both the protections and potential for forgiveness.

Grace Lemire is a full-time content writer and part-time social media creator with a passion for helping people navigate life's toughest financial decisions – from moving out of your parents' house to buying a home.