Ratings Methodology for Student Loan Refinance
NerdWallet’s overall ratings for student loan refinance are weighted averages of ratings in the following categories:
- Faster repayment.
- Payment flexibility.
- Customer support.
Data collection and review processOur 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.
Student loan questionnaires are reassessed annually, and writers and editors make review updates throughout the year as necessary. We work to maintain contact with providers to keep information current.
The review teamThe review team is made up of student loans writers and editors who cover student finance topics, including student loans, college debt and college alternatives. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.
In addition to NerdWallet, the work of our team members has appeared in The New York Times, The Associated Press, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets. The student loan team’s writers and editors combined have more than 30 years of experience in finance.
For faster repaymentWe pay closest attention to the following:
Top lenders generally meet all of NerdWallet’s criteria for faster repayment.
For disclosuresWe consider the following:
Top lenders generally allow borrowers to get their interest rate and loan terms with a soft credit check and disclose their interest rate range, minimum income requirements and minimum credit score requirements.
For availabilityWe look at the following eligibility requirements:
Top lenders generally lend to those with at least an associate’s degree and allow the refinancing of PLUS loans.
For payment flexibilityWe evaluate the following:
Lenders with the highest marks for payment flexibility generally offer at least five options for borrowers struggling with payments.
For customer supportWe analyze:
Top lenders generally have a defined complaint process and separate complaint department or ombudsman, live chat and in-house customer service.
Note on 5-star must-havesIn some cases, a lender may score high enough to receive a five-star rating but doesn’t meet one or more of the must-have criteria. They include:
Half a star is deducted from lenders who meet the point requirement for five stars but don’t meet the must-have criteria.