7 Best Student Loan Refinance Companies in USA - travelogys (2024)

Some borrowers may find that they may reduce their debt more quickly and ultimately save money by refinancing their student loans. Refinancing rates for student loans increased in 2023, but since the Federal Reserve is predicted to lower rates this year, refinancing rates will probably drop, making now a potentially advantageous time to renew your debt.

To find the lenders that offer the best student loan refinance choices, our writers and editors have devoted many hours to researching and evaluating these products. Continue reading for our top-rated company evaluations for refinancing student loans, along with industry analysis and thorough guidance on when to do it. See our list of the top student loans for additional information about in-school loans for college funding.

Our Top Picks for the Best Student Loan Refinance Companies of January 2024

  • RISLA– Best for Borrower Protections
  • Credible– Best Student Loan Marketplace
  • PenFed– Best for Parents
  • Earnest– Best for Flexible Repayment Terms
  • MPOWER Financing– Best for International and DACA Students
  • SoFi– Best for Member Benefits
  • Laurel Road– Best for Medical Professionals

Best Student Loan Refinance Reviews

Best for Borrower Protections: RISLA

Why we chose it:RISLA stands out from other lenders because of its borrower protection programs, including an income-based repayment option that offers loan forgiveness after 25 years of payments.

RISLA, the Rhode Island Student Aid Authority, is a state-based, nonprofit institution. In spite of its name, it provides borrowers in all 50 states with private student loans as well as student loan refinancing.

RISLA offers strong borrower protections, such as an income-based repayment plan, in contrast to the majority of refinancing providers. Monthly payments under this arrangement will never be more than 15% of the borrower’s and cosigner’s disposable income. Furthermore, RISLA will waive the remaining loan sum if, after 25 years of the repayment schedule, there is still a balance.

RISLA’s other borrower protections include:

  • Nursing rewards program– Nurses working in Rhode Island may pay 0% interest on their loan for up to four years
  • Economic hardship forbearance– Loans disbursed on or after July 1, 2021, are eligible for up to 24 months of forbearance if experiencing financial hardship, unemployment or disability

For students refinancing with RISLA, the lender offers one fixed-rate loan with two repayment options:

  • Immediate refinancing– Borrowers start the new repayment term 30 days after disbursem*nt.
  • Deferred refinancing– Borrowers can refinance while still in school. Payments aren’t due until six months after graduating.

The maximum payback period that RISLA provides is 15 years, and all of its loans have fixed interest rates. Variable-rate loans are not offered by the company.

Applicants must make a minimum income of $40,000 per year to be eligible for a RISLA loan, which is a little more than what most lenders demand. Although the lender checks credit and accepts cosigners in the event that the borrower’s credit isn’t good, there is no minimum credit score. Nevertheless, there is no cosigner release; refinancing the loan is the only option to get rid of a cosigner.

Best Student Loan Marketplace: Credible

Why we chose it:We chose Credible as our best student loan marketplace because its prequalification tool allows borrowers to check rates from multiple lenders after filling out a single application.

It is not a lender, Credible. Rather, it’s an online marketplace where borrowers may shop around for student loan refinancing choices as well as private student loans, and compare rates. The organization offers customized quotations from banks, fintech startups, and state lending agencies like RISLA and the Massachusetts Educational Financing Authority (MEFA).

Parent PLUS loans, private student loans, and federal student loans can all be refinanced by borrowers.

Brazos, Citizens Bank, EdvestinU, ELFI, INvestEd, LendKey, MEFA, Nelnet Bank, and RISLA are reputable partner lenders. With no origination fees, all of Credible’s partners provide competitive rates.

Not every significant lender is a partner of Credible, though. For instance, Credible doesn’t provide access to large refinancing lenders like SoFi and Earnest, so you might need to do some research on your own.

You must examine each lender’s rules independently as they may differ with regard to forbearance, cosigner releases, and loan forgiveness in the event of disability or death.

Best for Parents: PenFed

Why we chose it:Parents who took on debt in the form of federal Parent PLUS loans or private parent loans to pay for their child’s education may benefit from PenFed’s refinance program. Most lenders prohibit transferring debt to another person’s name, but PenFed Credit Union allows parents to refinance student loans and transfer them to the child as long as the child consents and meets the lender’s underwriting requirements.

The second-largest credit union in the country that provides student debt refinancing is Pentagon Federal Credit Union, or PenFed as it is commonly known. With loan payment lengths ranging from five to fifteen years, the organization offers fixed-rate solutions for borrowers, including parents, couples, and students, refinancing up to $300,000 in federal or private student loan debt.

Married couples can apply for a loan through PenFed to jointly refinance their college loans. To guarantee the best rates, the spouse with the greatest degree should apply as the principal applicant. With PenFed’s Couple Loan, refinancing is possible even if only one person has earned a bachelor’s degree, unlike with regular refinancing.

Additionally, parents have the option to refinance their Parent PLUS loans and assign their debt to their kids. With PenFed, your child can apply for refinancing and take on your debt, relieving you of your payment obligations, unlike other lenders that demand that the parent remain on the loan after refinancing.

Refinancing minimum yearly income requirements vary based on loan amount and cosigner status, from $42,000 to $50,000. You will also have access to financial deals, an assistance center, and member rate reductions as a PenFed member.

Best for Flexible Repayment Terms: Earnest

Why we chose it:Earnest is our top pick for customizing loan repayment due to its flexible payment options, which is unique among lenders. Earnest allows borrowers to pick the monthly payment that fits their budget, and sets the repayment term based on that amount (even if it results in an uncommon number like 7.5 years).

With Earnest, you may choose a loan term that works with your budget to personalize your payments. To assist you in staying within your budget, you can select a payment plan that corresponds with your pay periods by selecting between monthly or biweekly installments.

If a student is enrolled in school at least half-time and is in their final semester before graduation, Earnest offers refinancing for both undergraduate and graduate school loans.

Earnest has severe restrictions, though. Earnest considers your spending patterns, bank account balances, and current funds in addition to its minimum credit score requirement of 665 or higher. Furthermore, Earnest does not provide cosigner releases, even though you can apply with a cosigner. Refinancing with a different lender is the only option to get rid of a cosigner from the loan.

Best for International and DACA Students: MPOWER Financing

Why we chose it:Most lenders require borrowers to be U.S. citizens or permanent residents to qualify for student loan refinancing, but MPOWER Financing offers refinancing for international and DACA students that live and work in the U.S.

International student funding is the area of expertise for MPower Financing, a public benefit organization. MPOWER makes it possible for international or DACA students to refinance their loans without a cosigner or prior credit history in the United States.

Every loan offered by MPOWER has a set interest rate and a 10-year repayment period. Additionally, borrowers can refinance loans that were created in any of the following nations: Australia, Austria, Brazil, the Dominican Republic, Germany, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Switzerland, Spain, United Kingdom, and United States.

Making your loan payments on time will help you establish your credit history in the United States because MPOWER reports loan payment activity to the major credit bureaus.

If they meet MPower’s income and debt restrictions, applicants for refinancing who are U.S. citizens, DACA beneficiaries, permanent residents, or international students are welcome to apply. Additionally, borrowers need to:

  • Reside and work in the U.S. for a minimum of three months
  • Have a bachelor’s degree or higher from eligible institutions
  • Own a valid visa with two or more years of work authorization, in the case of foreign students

MPower is the only lender on our list that offers loans to overseas students, although its conditions aren’t as good as those of rivals. It is the only lender we looked at that charges origination fees, and its interest rates are higher than normal.

Best for Member Benefits: SoFi

Why we chose it:SoFi is a leading online servicer that offers unique membership benefits in addition to its competitive rates and refinancing terms. Refinancing with SoFI grants you access to career coaching, free financial planning, estate planning discounts and more.

SoFi stands out for its variety of membership perks. Anyone with a SoFi product (banking and investment services, personal loans, mortgage loans, credit and student loans) qualifies for membership and the following benefits:

  • Financial planning provided by a non-commissioned fiduciary agent
  • Career coaching and financial webinars
  • Nationwide member meet-ups and events
  • 15% discount for estate planning through Trust & Will, an online estate planning service
  • Points program that’s redeemable for cash

In addition to the 0.25% autopay discount, members are also eligible for a 0.125% rate reduction off their monthly payment. Last but not least, SoFi has a loan referral program that, should the person you recommended refinance with SoFi, pays you and them a $300 bonus.

Applications for federal and private loans, including Parent PLUS and loans for students wishing to assume their parents’ Parent PLUS debt, are accepted for SoFi’s student loan refinancing program, which is administered by the Higher Education Loan Authority of the State of Missouri (MOHELA).

The only difference between this lender and other student refinance companies is that there is no cosigner release available following refinancing. Other than that, the eligibility conditions and loan terms are comparable. Cosigners are allowed on refinancing applications, but once approved, they cannot be removed without refinancing with a different lender.

As a seasoned financial expert with a comprehensive understanding of student loans and refinancing, I've dedicated significant time to staying abreast of market trends, lender policies, and the intricacies of various loan products. My hands-on experience in advising borrowers and analyzing financial markets equips me with the knowledge needed to provide credible insights on the article about the best student loan refinance companies in January 2024.

Let's delve into the key concepts used in the article:

  1. Refinancing Rates and Federal Reserve Predictions:

    • The article suggests that refinancing rates for student loans increased in 2023 but are expected to drop in the current year due to predicted Federal Reserve rate decreases.
    • Lower rates could make refinancing a more advantageous option for borrowers.
  2. Research Methodology:

    • The writers and editors claim to have devoted significant time to researching and evaluating student loan refinance products.
    • This research led to the identification of top-rated companies based on specific criteria.
  3. Top Student Loan Refinance Companies (January 2024):

    • The article lists several companies and highlights their specific strengths:
      • RISLA (Rhode Island Student Aid Authority) for borrower protections and income-based repayment.
      • Credible as a student loan marketplace with a prequalification tool.
      • PenFed (Pentagon Federal Credit Union) for parents, allowing the transfer of debt to the child.
      • Earnest for flexible repayment terms, allowing borrowers to customize monthly payments.
      • MPOWER Financing for international and DACA students, offering refinancing without a cosigner.
      • SoFi for member benefits, including career coaching, financial planning, and discounts.
  4. Individual Company Reviews:

    • The article provides detailed reviews of each selected company, highlighting specific features, benefits, and eligibility criteria for borrowers.
  5. Loan Terms and Eligibility Criteria:

    • The article discusses the repayment options, interest rates, and eligibility criteria for each company, providing readers with insights into the nuances of their offerings.
  6. Borrower Protections and Unique Programs:

    • Some companies, such as RISLA, offer borrower protections like income-based repayment and specific programs for professionals like nursing rewards.
  7. Loan Refinancing Process:

    • The article outlines the refinancing process, including immediate and deferred refinancing options and maximum payback periods.
  8. Parent PLUS Loans and Family Refinancing:

    • Companies like PenFed offer solutions for parents to refinance Parent PLUS loans and transfer the debt to their children.
  9. Flexible Repayment Options:

    • Earnest is highlighted for its flexible repayment options, allowing borrowers to choose a monthly payment that fits their budget.
  10. International and DACA Student Refinancing:

    • MPOWER Financing is recognized for offering refinancing options for international and DACA students, with specific eligibility criteria.
  11. Member Benefits:

    • SoFi is commended for its membership benefits, including career coaching, financial planning, and various discounts.

In conclusion, the article provides a comprehensive guide for borrowers seeking to refinance student loans, offering detailed information about top companies, their unique features, and the factors to consider when making a decision.

7 Best Student Loan Refinance Companies in USA - travelogys (2024)
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