5 Best Student Loan Refinancing Companies of June 2023
The best student loan refinancing companies typically offer lower interest rates. But some refinance lenders also excel at serving specific customer groups.
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A student loan refinance is when you move your loans from one lender to a new, private lender. The new servicer will pay off your old debt and typically offer you a better interest rate or more suitable terms. These better terms can save you money.
You can refinance federal and private student loan debt into one, new private loan. Refinancing federal student loans will forfeit federal benefits. If you want to keep your federal loans federal, consider consolidation.
Refinancing student loans is usually best for those with strong credit and stable income since this often results in better loan terms.
NerdWallet student loan experts evaluated dozens of data points to identify the best student loan refinance companies for different customers.
We've identified all our selections below.
Best Student Loan Refinancing Companies
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
4.0 /5 | 660 | 6.61-10.68% | N/A | Check rateon LendKey's website on LendKey's website | |
5.0 /5 | 650 | 4.99-9.99% | 5.99-9.99% | Check rateon SoFi's website on SoFi's website | |
5.0 /5 | Mid-600s | 5.99-11.99% | 5.99-11.99% | Check rateon College Ave's website on College Ave's website |
Our pick for
Student loan refinancing with low income
You can refinance if you don't make a lot of money, but this may not make sense for federal loan borrowers.
LendKey Student Loan Refinance
660
6.61-10.68%
N/A
Borrowers who refinance with LendKey have an average income of $65,000 — the lowest number among lenders who shared this information with NerdWallet.
- Forbearance of 18 months for 15- and 20-year loan terms is longer than many lenders.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in Maine, Nevada, North Dakota, Rhode Island or West Virginia.
- No payment postponement available if borrowers return to school or serve in the military.
- Typical credit score of approved borrowers or co-signers: 751.
- Loan amounts: $5,000 to $300,000, depending on the higest degree earned.
- Must have a degree: Yes, at least an associate degree.
Our pick for
Banks to refinance student loans
SoFi Student Loan Refinance
650
4.99-9.99%
5.99-9.99%
- You can refinance parent PLUS loans in your name.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Additional perks like career planning, job search assistance and entrepreneurship support available.
- No co-signer release available.
- Loan size minimum is higher than most lenders.
- Typical credit score of approved borrowers or co-signers: 700+.
- Loan amounts: $5,000, up to your total outstanding loan balance.
- Must have a degree: Yes, an associate degree or higher.
Our pick for
Overall
College Ave Student Loan Refinance
Mid-600s
5.99-11.99%
5.99-11.99%
- You can choose any loan term between 5 and 15 years.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- No co-signer release available.
- Students cannot refinance a parent PLUS loan in their name.
- Typical credit score of approved borrowers or co-signers: Mid-700s.
- Loan amounts: $5,000 to $300,000, depending on the highest degree earned.
- Must have a degree: Yes, an associate degree or higher.
RISLA Student Loan Refinance
680
5.79-8.24%
N/A
- Income-based repayment plan available, with forgiveness after 25 years.
- No co-signer release available.
- Students cannot refinance a parent PLUS loan in their name.
- Typical credit score of approved borrowers: 748.
- Loan amounts: $7,500 to $250,000, depending on the highest degree earned.
- Must have a degree: No.
Our pick for
State-based refinancing
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You can refinance without a degree.
- You can refinance while in school or during a medical residency.
- Interest rates vary by refi product.
- Typical credit score of approved borrowers or co-signers: Approximately 750.
- Loan amounts: $5,000 to $300,000. (Minimum for California residents is $10,000.)
- Must have a degree: No.
How to refinance student loans
Identify your financial goals. Refinancing can help you lower your monthly student loan payment, total payback amount or both. You can also use a refinance to change your loan terms and pay off your student debt faster. Consider your goals first to determine if refinancing will help you meet them.
Evaluate your finances. For the best chances of approval, you'll likely need a credit score in the high 600's, a debt-to-income, or DTI, ratio of 50% or better and stable income.
Compare rates. Get prequalified with several lenders to see who gives you the best deal. The lenders on this list will show you your rate offer without affecting your credit score
Choose a lender, and complete the application. You may need the following information to complete the official application: loan verification statement, proof of employment, proof of residency, proof of graduation, proof of identity.
Sign the final documents, and wait for loan payoff. Once final underwriting is complete, you’ll need to sign some final paperwork to accept the loan. You'll have three days to cancel the refinance loan if you change your mind.
Best student loan refinance companies
Current student loan interest rates for the best refinance companies
The NerdWallet team of student loans experts analyzed reported refinancing rates from six lenders over a period of 39 months. We considered four variables — average maximum fixed rates, average minimum fixed rates, average maximum variable rates and average minimum variable rates — for each lender on a month-over-month basis.
The average rates as of Apr. 19, 2023, are:
Minimum fixed interest rate - 5.16%.
Maximum fixed interest rate - 9.09%.
Minimum variable interest rate - 5.13%.
Maximum variable interest rate - 9.66%.
The rates for top refinance lenders tend to follow the trend line of student loan refinance interest rates in general. Borrowers have seen a general upward trend starting in December 2021.
Use this chart to gauge how your student loan refinance offers measure against average interest rate ranges.
STUDENT LOAN REFINANCE RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loan refinance and our editorial guidelines.
Last updated on April 19, 2023
NerdWallet's Best Student Loan Refinancing Companies of June 2023
- LendKey Student Loan Refinance: Best for Student loan refinancing with low income
- SoFi Student Loan Refinance: Best for Banks to refinance student loans
- College Ave Student Loan Refinance: Best for Overall
- RISLA Student Loan Refinance: Best for Overall
- ISL Refinance Loan: Best for State-based refinancing
