Refinancing your student loans opens the door to a number of potential benefits, from simplified monthly payments to the chance of a lower interest rate. If you’re not happy with your current lender, here’s a list of the best student loan refinance companies and how to choose the right one. 

Factors like your credit, income, and existing debt all impact the exact refinancing terms you receive — and each lender has a different way of analyzing your application. 

If possible, prequalify with a few lenders before submitting an application. By prequalifying, you can see the estimated rates and terms you’re likely to qualify for, often with only a soft credit check that won’t affect your score. This can give you a better idea of what each lender may offer and help you find the best loan for your situation. Once you submit an official application, a hard credit check will be conducted which may cause a slight dip in credit score. 

If the options above don’t fit your needs, see what these lenders can provide:

• SoFi: This online lender offers competitive fixed and variable interest rates with absolutely no fees. There are also specialized refinance loans for parents, health professionals, lawyers, and more. But what really makes SoFi shine is its extra benefits for members: Borrowers can access free financial planning, career coaching, and discounts on flights and hotels. 
• Laurel Road: With fixed and variable rates available, along with loan terms from 5 to 20 years, you can customize your loan to fit your needs. Borrowers who link a Laurel Road checking account and meet deposit requirements can also access lower refinancing rates. You can schedule a free consultation with a student loan specialist to compare your options.

We evaluated these student loan refinancing lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

When comparing your loan options, it can be tough to know which factors are most important. Here’s what to review for each loan offer you receive:

• Annual percentage rate (APR): This is what the lender charges to loan you money. Make sure you understand the difference between the APR and simple interest rate: While the simple interest rate only includes interest costs, the APR factors in the interest plus other borrowing costs, such as an origination fee.
• Loan terms: This is how long you have to repay your debt. A longer term generally results in smaller monthly payments but higher total interest costs. Many lenders offer options between 5 and 20 years, but some only have 2 or 3 terms to choose from.
• Loan amounts: Lenders often instate minimum and maximum amounts they're willing to refinance. Make sure the companies you review offer the amounts you need.
• Eligibility requirements: In addition to meeting credit and income standards, lenders may also require you to be a U.S citizen or permanent resident, live in an eligible state, or have certain types of student loans. Many lenders also require that you graduated with your degree, though some will work with borrowers who didn’t complete their education. 
• Cosigner policies: If you plan to use a cosigner, review each lender’s rules. See if releasing the cosigner later is an option, and what requirements you must meet to do so. 
• Fees: Review the other expenses that may come with your loan. Most lenders don’t charge upfront costs such as application or origination fees, but some might. Also compare late fees, returned payment fees, and similar costs.
• Discounts and rewards: Most lenders offer a rate discount of 0.25 percentage points when you enroll in autopay, but there may be other perks available, too. Look for things like loyalty discounts for existing customers, lower rates for residents of certain states, and refer-a-friend programs, all of which can save you money on your student debt.
• Hardship options: If you later have trouble making payments, what programs does the lender have to help? Some offer forbearance programs if you’re unemployed or experience a natural disaster, while others may allow you to skip one payment a year or adjust your due date as needed.
• Membership benefits: Some companies offer unique perks to entice customers. Your loan might come with free access to a finance professional, career planning resources, or other specialized services. 

Pros and cons of student loan refinancing

You'll need to weigh more than just your options in lenders before moving forward with student loan refinancing. It's also important to consider the pros and cons of refinancing to ensure it's financially beneficial for you: 

Pros of student loan refinancing: 

• You can save money: By securing a lower interest rate, you could significantly reduce the total cost of your loan over time, potentially saving you thousands in interest charges. 
• You can lower your monthly payments: When you refinance, you’ll have the option of extending your repayment period, which will lower your monthly payments. Just know that a longer repayment term means you’ll be in debt for longer and owe more interest.
• You can combine multiple loans into one: Consolidating several loans into one refinancing plan simplifies your finances with a single monthly payment.
• You can release a cosigner from your loans: Refinancing will release any cosigner from a previous loan from their responsibility of the debt, potentially improving their credit profile. 

Cons of student loan refinancing: 

• You might not qualify: A minimum credit score of 670 and a stable income are usually required to refinance on your own. Each lender has their own credit and income requirements. 
• You might not get a better rate: Depending on market conditions and your credit profile, you might not be able to access a lower rate than what you’re currently paying.
• You may increase your interest charges: Refinancing allows you to expand your repayment terms, which lowers your monthly payments. However, if you do choose a longer repayment period, you may not save money in the long run. 
• You might lose federal benefits and protections: Refinancing federal student loans with a private lender means losing benefits like income-driven repayment, deferment and forbearance options, and access to forgiveness programs.

Exact eligibility requirements to refinance student loans vary by lender. However, general requirements include: 

• Good credit score: You'll typically need a credit score in the mid- to high-600s to qualify for student loan refinancing (or include a cosigner with strong credit on your application). 
• Proof of income: Some lenders have a minimum income requirement, while others simply require proof of employment. 
• A minimum amount to refinance: Not all lenders have this requirement, but some may require you to have at least $5,000 to $10,000 in student loans to refinance. 
• A degree from an eligible school: Most lenders won’t allow you to refinance until after you’ve graduated or left school. However, there are some exceptions such as MEFA, which allows current students to refinance with them. 
• A U.S. citizenship or permanent resident status: You typically need to be a U.S. citizen or permanent resident alien with a valid Social Security number to qualify for refinancing. 

Generally, you'll need a minimum FICO score of 670 to refinance your student loans — but the higher your score, the lower the rate you're likely to qualify for. A high credit score matters to lenders because it indicates a lower risk of default. If your credit isn’t ideal, consider bringing on a cosigner with excellent credit to help you qualify for a better rate. 

Related: Can I refinance student loans with bad credit?

You might consider student loan refinancing if you can qualify and if doing so could result in savings or other benefits, such as lowering your monthly dues to a more manageable amount.

Refinancing your student loans might make sense if doing so could lead to savings. This might be the case if you currently have a high interest rate — particularly if it's a variable rate, which can be unpredictable. Additionally, if your financial situation has improved since you took out your loans or the interest rate environment is strong, then refinancing might be worth pursuing. 

If you have federal student loans, however, exercise caution before refinancing. Refinancing federal student loans will cause you to lose access to federal protections and benefits, such as student loan forgiveness, income-driven repayment, and flexible deferment or forbearance.

You might also think twice before refinancing if your current financial situation is rocky or you’re behind on payments. Refinancing in those situations will likely result in you ending up with a higher interest rate.

If you decide that refinancing is right for you, here's a look at how to refinance student loans.

It's generally wise to refinance high-interest private student loans over federal loans, since they usually come with higher interest rates. Federal student loans offer benefits like income-driven repayment plans and the potential for loan forgiveness. Refinancing federal loans with a private lender means you'll lose access to those benefits.

Refinancing may or may not save you money. Let's say you have $30,000 in student loans at a 7.5% interest rate over a 10-year loan term. Refinancing to a new rate of 5.5% with the same loan term would save you $3,663 on interest over the life of the loan. However, if you chose to extend your repayment term to 15 years when you refinanced, you would end up owing a total of $1,390 more in interest charges over the life of your loan.

The credit score you need to refinance your student loans varies by lender. However, most student loan refinance lenders look for a FICO credit score of 670 or higher.

You can refinance your student loan with a private student loan lender - this can be a bank, credit union, or online lender. If you have federal student loans, it's typically not a good idea to refinance with a private lender, as this will cause you to lose federal benefits like access to income-driven repayment plans and loan forgiveness. You can consolidate federal student loans, which is similar to refinancing in that it combines multiple loans into one loan.

Refinancing student loans can potentially save you thousands of dollars over the course of repayment if you qualify for a lower interest rate. If you're struggling to fit your current student loan payment into your budget, refinancing to a longer repayment term can lower your monthly payments - though you'll likely pay more in interest over the life of the loan. And if you have a variable-rate student loan, refinancing with a loan that has a fixed rate can make your monthly payments more predictable.

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