Refinance Student Loans

Now that you've graduated, you might find that refinancing or consolidating your student loans is the most logical next step to secure your financial future. Compare below to learn which lender provides the best refinancing solution for you.

  • 3.89%-8.02% APR Range
    Variable Min credit score
    60-240 Months Loan Term

    About the lender

    SoFi is a new kind of finance company taking a radical approach to lending. From unprecedented products and tools to faster service and open conversations, they're all about helping our members get ahead and find success. 

    Qualifications 

    • Typical borrowers have good to excellent credit.
    • APR range: 3.89%-8.02% (with AutoPay)*
    • Minimum Loan Amount: $5,000 

    Facts and fees

    • Zero fees - No origination, pre-payment, or late fees
    • Low rates, flexible payment features, protection in the case of job loss**
    • Membership perks like career coaching and networking events
    • Simple online application and access to live customer support 7 days a week

    Fixed rates from 3.899% APR to 8.024% APR (with AutoPay). Variable rates from 2.540% APR to 7.275% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.540% APR assumes current 1 month LIBOR rate of 2.49% plus 0.04% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. SoFi rate ranges are current as of March 4, 2019 and are subject to change without notice.

  • 3.25%-5.00% APR Range
    Variable Min credit score
    60-240 Months Loan Term

    About the lender:

    Credible makes it quick and easy to save on student loans. In under 2 minutes, borrowers can compare real rates, not rate ranges, from up to 10+ vetted lenders. Save money on your student loans by refinancing with Credible.

    Qualifications:

    • Minimum credit score: 620
    • Minimum annual income: $18,000
    • Minimum credit history: No minimum
    • Maximum debt-to-income ratio: N/A

    Facts and fees:

    • Compare real rates from up to 10+ lenders with Credible
    • Does not impact credit to check rates• Refinance federal and private loans
    • All balances over $5,000 eligible for refinancing
    • Rated 9.5 out of 10 on Trustpilot

  • 4.69% - 8.10% APR Range
    Variable Min credit score
    180-240 Months Loan Term

  • 3.94% - 9.80% APR Range
    Variable Min credit score
    120-240 Months Loan Term

  • 4.45%-7.69% APR Range
    Variable Min credit score
    120-180 Months Loan Term

  • 3.75% - 7.65% APR Range
    Variable Min credit score
    60-180 Months Loan Term

Is it a Good Idea to Refinance Student Loans?

Student loans can be extremely stressful. Currently, the student loan debt in America is nearly one trillion dollars. People look at student loans and have a sense of despair. However, there is a possible way you can reduce the amount you must pay—and no, we don’t mean default. You can refinance student loans! When you refinance student loans, you can possible adjust the interest rate and repayment terms. To do so, you need to be qualified. Qualifications vary. In this article, there will be information on how to refinance student loans. The process to refinance student loans should not be too arduous, and it will be worth it in the end.

Overall, there are some steps you need to know when you refinance student loans, as well as some important terms and definitions. These will provide clarity in the process.

When Should You Refinance Student Loans?

First of all, the term “refinance” is important to define. When you refinance student loans, you are re-analyzing and reevaluating the student loans to see if there is the potential for a lower loan rate. Usually, lower loan rates happen. Not only do interest rates adjust, repayment terms can adjust too. Repayment terms include the duration and frequency of the payment.

You should refinance student loans because it gives you the chance to save money. You should also refinance student loans for debt consolidation purposes. Debt consolidation is great for people with multiple debts. Having a lot of payments per month can be overwhelming. They are hard to keep track of, and the payments all have different terms. When you consolidate the debt, you combine all of these payments and roll them into one debt you pay off each month. The debt has its own interest rate (which might be lower), and its own terms.

Approval to refinance can be strict. And refinancing also might not be cheap. It costs money to refinance. Check ahead to make sure that you won’t end up behind when you refinance student loans.

Why Approval Can Be Stringent

When you apply to refinance student loans, don’t put all your eggs in one basket. Don’t apply to only one student loans lender. While the federal government issues student loans, they do not refinance them. If you want to refinance student loans, you must do so via a private lender. These lenders have differing criteria. Approval can be strict. Lenders want to make sure that you’re reliable and will pay back your debt. Refinancing creates new terms. New terms operate as a contract. The bank needs to ensure you are not at risk to break the contract.

Factors Impacting Your Approval

When you refinance student loans, there are going to be some factors impacting your approval. Approval is not guaranteed. If you have good credit, a steady source of income, and low debt, you are in good shape. Regarding the income, a written job offer is usually sufficient to show that you’re on the path to income. And with regards to the debt, if you have a high income and sizable debt, the financer will look at the ratio of debt to income. These are just several factors. Approval to refinance student loans is more of a totality of the circumstances.

What About a Co-Signer?

Consider a co-signer to the loan. Co-signers add security the loan. They put their own income and credit score next to yours when they co-sign the mortgage. Co-signers do not have to live at the property, and they are often called nonoccupant borrowers. If you decide to have a co-signer, make sure that you pick someone reliable. Ask them about their financial history and credit score. Expect them to return the favor. Adding another person to the contract is a way to vouch for your ability to repay. In some cases, it can increase your chance for approval.

If you’re looking at your credit score now and you’re concerned, there are ways to raise it. Don’t take out any more credit. Don’t withdraw more than 30% on your credit. And, of course, repay your bills in a timely fashion.

Hopefully, this article has given you some clarity on how to refinance student loans. There is a possibility that you can benefit from this process. Why not try it? Refinancing loans will potentially reduce the stress on your shoulders. Student loan debt is not a solitary problem; if you have it, you are not alone by any stretch of the imagination. The trillion-dollar debt in America is likely to expand. Refinancing student loans is a way to possibly cut down that number to something less ominous. Higher education shouldn’t be a burden.

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