BEST OF
5 Best Lenders to Refinance Student Loans With Low Income
Consider refinancing if you have a low income and private student loans.
Lenders often require a minimum income to refinance your student loans. You'll likely need to earn at least $30,000, but that number could be even lower if you have a co-signer.
But there’s usually a big difference between the minimum income required and the actual average income of those approved for student loan refinancing. You can still refinance if you don’t make a lot of money, but you should think twice before refinancing federal student loans. There’s no downside to refinancing any private loans you have, however.
Here are our picks for the best lenders to refinance student loans with low income, as well as tips to decide if this option is for you.
Lenders often require a minimum income to refinance your student loans. You'll likely need to earn at least $30,000, but that number could be even lower if you have a co-signer.
But there’s usually a big difference between the minimum income required and the actual average income of those approved for student loan refinancing. You can still refinance if you don’t make a lot of money, but you should think twice before refinancing federal student loans. There’s no downside to refinancing any private loans you have, however.
Here are our picks for the best lenders to refinance student loans with low income, as well as tips to decide if this option is for you.
Summary of Best Lenders to Refinance Student Loans With Low Income
| Lender | NerdWallet Rating | Min. Credit Score | Fixed APR | Variable APR | Learn More |
|---|---|---|---|---|---|
 Earnest Student Loan Refinance Check rate on Earnest's website | Best for Recent graduates with low income | 650 | 2.50 - 5.79% | 1.88 - 5.64% | Check rate on Earnest's website |
 LendKey Student Loan Refinance Check rate on LendKey's website | Best for Refinancing student loans with low income | 660 | 2.95 - 7.63% | 1.90 - 5.25% | Check rate on LendKey's website |
 PenFed Student Loan Refinance Check rate on Purefy's website | Best for Working with a credit union | 670 | 2.89 - 5.63% | 2.13 - 5.25% | Check rate on Purefy's website |
 RISLA Student Loan Refinance See my rates on NerdWallet's secure website | Best for Making payments based on income | 680 | 3.49 - 8.14% | N/A | See my rates on NerdWallet's secure website |
 Citizens Student Loan Refinance See my rates on NerdWallet's secure website | Best for Borrowers who didn’t graduate | Does not disclose | 2.39 - 9.15% | 2.24 - 8.90% | See my rates on NerdWallet's secure website |
Our pick for
Recent graduates with low income
It may take a while to reach your earning potential if you recently graduated. But Earnest can approve you based on a job offer alone.
on Earnest's website
Earnest Student Loan Refinance
Min. Credit Score
Fixed APR
Variable APR
on Earnest's website
Our pick for
Refinancing student loans with low income
Borrowers who refinance with LendKey have an average income of $65,000 — the lowest number among lenders who shared this information with NerdWallet.
on LendKey's website
LendKey Student Loan Refinance
Min. Credit Score
Fixed APR
Variable APR
on LendKey's website
Our pick for
Working with a credit union
As nonprofit organizations, credit unions may have more generous approval criteria and terms for low-income borrowers compared to other lenders.
on Purefy's website
PenFed Student Loan Refinance
Min. Credit Score
Fixed APR
Variable APR
on Purefy's website
Our pick for
Making payments based on income
Income-driven plans are rare among private lenders, but RISLA offers one that sets payments at 15% of your discretionary income for up to 25 years.
on NerdWallet's secure website
RISLA Student Loan Refinance
Min. Credit Score
Fixed APR
Variable APR
on NerdWallet's secure website
Our pick for
Borrowers who didn’t graduate
Unlike many lenders, Citizens does not require you to have a degree to refinance student loans.
on NerdWallet's secure website
Citizens Student Loan Refinance
Min. Credit Score
Fixed APR
Variable APR
on NerdWallet's secure website
How to refinance student loans with low income
Having a low income doesn’t mean you can’t refinance student loans, but it may be harder to qualify. Take the following steps to help prevent your salary from holding you back:
Make sure you meet the lender’s income requirements. Not all lenders share their income requirements publicly, but those that do often set their minimum income threshold at more than $30,000. You may need to earn more than that number based on different factors, though. For example, PenFed requires a higher income if you want to refinance more than $150,000.
Have good credit. You’ll typically need a FICO score in at least the high 600s to qualify for refinancing. But getting your scores into the mid-700s or above may improve your odds and help you get a lower interest rate. Plus, a higher score can show lenders you do a good job managing money and expenses at your current income level.
Manage your debt-to-income ratio. If your income is low, your biggest hurdle to refinancing may be your debt-to-income ratio. DTI compares your monthly debts — student loans, car payments, rent, etc. — to your monthly income. This helps lenders understand whether you'll have enough cash on hand to afford your loan payments. Most lenders want a DTI below 50%.
Even if you can’t increase your income, you can take steps to make yourself a better candidate for student loan refinancing. For example, you can build credit faster by making payments strategically and minding credit limits, or you could improve your DTI by paying off your credit cards (but leaving the accounts open) before you apply.
If low income still prevents you from being approved, consider refinancing with a co-signer. That person will be equally responsible for your loan. You won’t want them to be on the hook forever, though, so be sure to review potential lenders’ co-signer release policies.
Other repayment options if you have low income
Some private lenders may let you pay less or pause repayment temporarily. But refinancing is the best way to lock in a smaller payment that doesn’t cost you more long-term. Be sure to compare offers from multiple refinance lenders to get the best interest rate — and lowest bill.
Federal student loans have more repayment options if you don’t make a lot of money — particularly income-driven repayment plans. These plans tie payments to a fixed percentage of your discretionary income, usually 10%, and are the best option if you have federal student loans and a low income. Payments can be as low as $0, though you'll likely pay more overall.
Refinancing federal student loans costs you access to income-driven plans, as well as other repayment benefits like loan forgiveness programs. Even if you’re positive your earnings will grow — for example, you’re a medical resident — you may want to wait until your income actually increases to refinance federal loans.
Last updated on July 28, 2021
To recap our selections...
NerdWallet's Best Lenders to Refinance Student Loans With Low Income
- Earnest Student Loan Refinance: Best for Recent graduates with low income
- LendKey Student Loan Refinance: Best for Refinancing student loans with low income
- PenFed Student Loan Refinance: Best for Working with a credit union
- RISLA Student Loan Refinance: Best for Making payments based on income
- Citizens Student Loan Refinance: Best for Borrowers who didn’t graduate
Frequently asked questions
Minimum income requirements vary by lender, and many don’t share this information publicly. Those that do usually require an income of at least $30,000 to refinance student loans.
Borrowers whom lenders approve for student loan refinancing often have an average income that’s at least six figures. You can refinance if you earn less, but it may be harder to qualify.
Enroll in an income-driven repayment plan if you have low income and federal loans. Private loan borrowers typically don’t have that option, but refinancing may make payments more affordable.
The majority of private lenders don’t offer plans that base student loan payments on your income. RISLA and iHELP are exceptions, as both offer income-driven repayment for refinanced loans.
