5 Best Student Loan Refinance Companies of April 2022

Refinancing your scholar loans can help you pay off debt immediate, saving you money in the long run .
Check out our best scholar loan refinancing companies of 2022 below, along with industry insights and the latest CARES Act information .

Our Top Picks for the Best Student Loan Refinance Companies

  • Credible – Best Student Loan Marketplace
  • Splash Financial – Most Affordable Loan Payment Options for Medical Students
  • PenFed – Best Credit Union
  • Laurel Road – Best Loan Consolidation for Medical Students
  • Earnest – Best for Customizing Loan Payment

Best Student Loan Refinance Reviews

Pros

  • Compare multiple lenders in one place
  • Check if you qualify without a hard credit check

Cons

  • Not a lender
  • You must research each lender individually before applying

highlight

Minimum income requirements
Varies by lender
Prepayment Penalty
Varies by lender
Fees
The marketplace does not charge you for its services
Cosigner Release
Varies by lender, but several offer it
Loan Amount
Varies by lender
Loan Types
Private undergraduate, graduate and Parent PLUS
Fixed interest rate
Varies by lender
Variable interest rate
Varies by lender

Credible is an on-line market that provides personalize quotes from banks, fintech companies and state of matter loan authorities such as Massachusetts Educational Financing Authority ( MEFA ) and Rhode Island Student Loan Authority ( RISLA ) .
The market offers student loan refinancing through undergraduate, graduate and Parent PLUS loans. While not all credible partners may offer the lowest pastime rates compared to other lenders on this number, the market boasts :

  • High approval rates
  • Income-driven repayment plans (particular to RISLA)

other credible collaborator lenders include Advantage Education Loan, Brazos, Citizens Bank, College Ave, EdvestinU, ELFI, and PenFed .

Pros

  • Compare multiple lenders in one place
  • Check if you qualify without a hard credit pull

Cons

  • Not a lender
  • You must research each lender individually before applying

highlight

Minimum income requirements
Varies by lender
Prepayment penalty
Varies by lender
Cosigner release
Varies by lender
Loan amount
Varies by lender
Loan types
Undergraduate, healthcare graduate and Parent PLUS
Fixed interest rate
Rates range from 1.74% to
Variable interest rate
Varies by lender

Splash Financial is an on-line marketplace that partners with loan servicers to provide checkup students with the lowest student lend refinance rates and low-cost refund options. loanword terms range from 5-20 years for fixed-rate loans and 25 years for variable interest loans. While there is no maximal loan total the minimum needed to refinance is $ 5,000 .
For medical and alveolar consonant residents :

  • Refinancing medical school loans with Splash could help you lower payments to as little as $100 a month for the duration of your residency, plus an additional six months after the end of the residency or fellowship.
  • Students with associate degrees in specific medical fields are allowed to refinance up to a maximum of $50,000 with Splash.

The party offers an easy lend lotion and pre-qualification march for undergraduate and Parent PLUS loans. Spouses can benefit from scholar lend consolidation and refinance their loans together, as the company offers the option to “ take over ” your spouse ’ randomness loans. parent loans can besides be transferred to the child .

Pros

  • Married borrowers can refinance their student loans into a single loan
  • Refinance parent PLUS loans under your name
  • Deposit $5 to open a membership account

Cons

  • Must become a PenFed member to apply

foreground

Prepayment penalty
None
Cosigner release
After 1 year of consecutive on-time payments
Loan amount
Up to $300,000
Loan types
Graduate, undergraduate and Parent PLUS
Minimum income requirements:
ranges from $42,000 to $50,000, depending on the loan amount and whether there is a cosigner or not.
Fees:
None
Fixed interest rate:
2.89% – 4.98%
Variable interest rate:
Unavailable

Pentagon Federal Credit Union is the second-largest credit union in the state that offers student loan refinancing. PenFed ’ s student loanword products are provided entirely by on-line lender Purefy. The ship’s company offers fixed- and variable-rate options for borrowers — students, parents and couples — refinancing up to $ 300,000 in private or union scholar loanword debt, with lend payment terms ranging from five to 15 years .
With PenFed, married couples can file a lend lotion to refinance their student loans together .

  • The spouse with the highest degree should apply as the primary applicant to ensure the best rates.
  • Unlike traditional refinancing, only one person needs to have completed a bachelor’s degree or higher to refinance through PenFed’s Couple Loan.
  • The annual income requirement ranges from $42,000 to $50,000, depending on the loan amount and whether there is a cosigner or not.

As a member of PenFed, you will gain access to member rate discounts, an advice center and fiscal offers .

Pros

  • Reduced student loan refinancing rates for optometrists, nurses, dentists, physicians or physician’s assistants
  • No application, origination or disbursement fees
  • Can choose a term under 20 years

Cons

  • Shorter grace period (6 months) when compared to other lenders
  • Loans are designed for people in the healthcare field, so not all graduate programs qualify

foreground

Prepayment penalty
None
Cosigner release
No, you must reapply for a loan to remove a cosigner
Loan amount
Min: $5,000 for bachelor’s degree and higher. Max: $50,000 for all non-parent PLUS refinance loans
Loan types
Undergraduate, healthcare graduate and Parent PLUS
Minimum income requirement:
Varies per each applicant’s financial profile.
Fixed interest rate:
2.25% – 5.75%
Variable interest rate:
1.64% – 5.65%

Laurel Road ’ s aesculapian school loan program is available for medical residents or fellows who want to consolidate their union and private loans to have a single loan payment. Interest will not compound during your residency, and the party besides allows you to reduce payments to deoxyadenosine monophosphate small as $ 100 per calendar month for up to four years before you start criterion repayments .
Your eligibility requirements as a house physician are based on your :

  • Credit profile
  • Monthly debt payments
  • Income projections at the end of your training period

Laurel Road offers a refinance option for up to $ 50,000 for aesculapian residents with consort degrees in eligible healthcare fields. The $ 50,000 maximum will not apply to parents borrowing for children pursuing an associate academic degree .

Pros

  • Customizable payments and loan terms
  • Option to skip one payment every 12 months
  • Autopay discounts are available
  • Can refinance your full student loan amount

Cons

  • You can’t apply with a co-signer
  • Not available for citizens of Kentucky and Nevada

highlight

Prepayment penalty
None, and no late payment charges
Cosigner release
No
Loan amount
$5,000-$500,000
Loan types
Undergraduate, graduate and Parent PLUS
Minimum income requirement:
$35,000. The lender currently doesn’t accept cosigners
Fixed interest rate:
Starting at 2.69%
Variable:
Starting at 1.99%

Backed by scholar loan giant Navient, Earnest offers multiple loan refund options and refinance loans for students and parents at competitive rates. The company besides features a unique underwrite access, which factors your earning likely to determine your interest rate and payments. Earning potential is based on your academic degree, your history of on-time payments and your credit score.
Earnest besides offers a “ preciseness pricing ” choice, which :

  • Allows you to choose a loan repayment term based on your ideal monthly payment amount
  • Offers term lengths at 1 to 3-month intervals between 5 to 20 years
  • Benefits recent graduates or borrowers that may not have sufficient credit history to qualify for refinancing elsewhere

To refinance your scholar loan through Earnest, you must have a minimal loanword remainder of $ 5,000, or $ 10,000 if you reside in California. The company states that once you are approved, you are mechanically approved for your stallion loanword sum, but you can choose to refinance less .
ad by Money. We may be compensated if you click this ad. adAds by Money disclaimer Refinancing your scholar Loan could allow you to payoff your scholar debt early. Lower your interest rate or reduce your monthly requital .Refinance Today

Other student loan refinance companies we considered

Navy Federal Credit Union

foreground

Minimum income requirement
Individual: 21 months or more of credit history and a monthly income of at least $2,000. Cosigner: Borrower must have a minimum monthly income of $1,000, and the cosigner must have a minimum monthly income of $2,000
Fees
No application or origination fees
Prepayment penalty
No prepayment penalties
Cosigner release
Available after 12 consecutive, on-time principal and interest payments
Fixed interest rate
Start at 2.99%
Variable interest rate
Start at 1.61%
Loan amount
$7,500-$125,000 for undergraduate debt. $7,500-$175,000 for graduate or combined debt

Navy Federal is the largest credit union in the world and specializes in banking and fiscal services for members of the military. Students with any type of student loanword with Navy Federal are eligible to use the Career Assistance Program, an on-line job training instrument that provides tips on interview, resume building and more. Parents that have taken out loans for multiple children can refinance and benefit from student loanword consolidation .
Why it didn’t make the cut:

  • Limited membership: The credit union only services members of the military or those who have family or household members in the armed forces.

Common Bond

highlight

Minimum income requirements
650
Fees
No application, origination or disbursement fee
Prepayment penalty
No prepayment penalties or late penalty charges
Cosigner release
May be requested after three years of consecutive, on-time principal payments
Fixed interest rate
From 2.59% to 6.94%
Variable interest rate
From 1.98% to 7.04%
Loan amount
$5,000-$500,000
Loan types
Fixed and varied

common Bond has no initiation or prepayment fees and offers a seamless application process. other highlights include Up 24 months of forbearance due to a national calamity –such as the COVID-19 pandemic – and a referral program that pays $ 200 if person you refer takes out a lend or refinances with Common Bond .
Why it didn’t make the cut:

  • While CommonBond is a popular choice for many, it didn’t make the list of top lenders because it doesn’t offer refinancing options for federal Parent PLUS student loans, one of our main selection criteria.

Citizens Bank

highlight

Minimum income requirements
650
Fees
No application, origination or disbursement fees
Prepayment penalty
None
Cosigner release
May be requested after 36 consecutive on-time principal payments on principal and interest
Fixed interest rate
From 2.59% to 8.23%
Variable interest rate
From 1.99% to 7.98%
Loan amount
$10,000-$50,000
Loan types
Fixed and varied

Citizens Bank combines the stability of a traditional bank with the tractability of on-line lend and offers refinancing options for both students and parents .
loanword refinance is available to permanent wave resident aliens and non-U.S. citizens ( with a restricted co-signer ), something that most early loan servicers don ’ metric ton put up .
Why it didn’t make the cut:

  • Citizens Bank has a history of complaints. This eventually resulted in regulatory action by the CFPB in 2015. The issue seems to have improved within the past few years, as there are currently only 43 complaints against the company’s student loan refinance products at this time.

SoFi

highlight

Minimum income requirements
Does not disclose
Fees
No application, origination or disbursement fee
Prepayment penalty
None, as well as no late payment charges
Cosigner release
May be requested after the student has graduated and completed 12 on-time payments, among other requirements
Fixed interest rate
From 2.49% to 6.74%
Variable interest rate
From 1.74% to 6.74%
Loan amount
$5,000 up to your total outstanding loan balance
Loan types
Fixed and varied

SoFi is a leading on-line loan servicer that offers student lend consolidation and refinance for undergraduate, graduate, medical scholar and Parent Plus loans .
Member perks include career coach, free entree to a college monetary value comparison creature, free access to personalized fiscal plan advice and a referral platform that pays you and the person you referred $ 300 for refinancing with SoFi .
Why it didn’t make the cut:

  • While SoFi offers competitive rates and provides members with various cost-free benefits, the lender barely missed making our list of top student loan refinance servicers. It currently has 53 complaints against it with CFPB, mainly relating to its loan process.

Student Loan Refinance Guide

In this guide, you will find information on what refinancing your scholar loans entails, when the best time to refinance is and what you need to qualify .

How does refinancing student loans work?

When you refinance your scholar loanword you are replacing your existing lend with a new loan with new terms from a secret lender .

Refinancing federal student loans

You can not refinance student loans through the federal government. If you have federal scholar loans, you will have to give up the federal benefits that come with them such as student lend forgiveness and certain loan refund programs should you choose to refinance.

Refinancing private student loans

If your student loans are from a private lender, you can refinance with your current lender or choose a different lender .
Refinancing in wide replaces your integral student loanword debt, while partial refinance allows you to refinance a specific number of loans, or precisely a share of a one loan. Borrowers with multiple loans can pick and choose which ones they want to refinance
overtone refinance is utilitarian if you have multiple federal student loans and don ’ deoxythymidine monophosphate want to risk losing out on future benefits. You can select to refinance one loanword, and leave the others with the federal government. The latter will remain eligible for any future forgiveness or emergency relief programs .

When to refinance student loans

With interest rates near historic lows, refinancing your student loans — whether federal or private — can save you money by replacing your existing education debt with a new loanword under a secret lender .
Borrowers much chose to refinance student loans if it ,

  • grants them a lower interest rate
  • grants them a lower monthly payment
  • grants them a shorter payment period
  • consolidates multiple student loans into one single payment.

Refinancing for a lower monthly payment can result in having a longer payment period and paying more money in the long run. Refinancing for a short requital period can result in a higher monthly payment .
We don ’ t recommend that you refinance federal loans while these are still under COVID-19 ’ sulfur emergency patience program, set to expire on August 31st, 2022. Doing sol means that your loans will become individual and won ’ metric ton be eligible for these or any future union protections or benefits .
Take a look at the following pros and cons to determine if refinancing your scholar loanword is right for you .
Pros

  • Take advantage of market fluctuations to reduce your rate
  • Shorten your loan repayment term
  • Lower your monthly payment
  • Consolidate federal and private student loans and have a single monthly payment
  • Option to remove your cosigner
  • Multiple repayment terms are available, often 5 to 20-years

Cons

  • No federal repayment protections
  • No federal student loan forgiveness
  • Subject to the private lender’s repayment terms
  • No flexibility to alter the repayment plan without refinancing
  • Lengthen your loan repayment plan
  • Irreversible: private loans can’t be converted back to federal loans

How to refinance student loans

Check your credit

scholar lend refinance lenders will take into account your creditworthiness. Generally, borrowers with credit scores in the high 600s, typically round 650 to 680, are more likely to qualify for a refinance lend. If you have a low sexual conquest or bad credit, a good first gear mistreat is to check your credit reports for any faulty information that may be affecting your grade. By recognizing errors early on, you can remove them from your credit history and function to improve your fiscal situation .

Consider the types of loans you have

Refinancing a federal lend means you lose exclusive benefits provided by the U.S. Department of Education, including public service loan forgiveness ( PSLF ), income-driven repayment plans, patience options and postponement. individual scholar loans broadly have a circumscribed calamity or hand brake forbearance period compared to federal loans .

Shop around

When comparing lenders, look at the credit score and annual income requirements, the annual share pace ( APR ) offered and debt-to-income proportion ( DTI ) requirements. Take the time to check the lender ’ second history with customer complaints or whether they ’ ve had any late lawsuits related to their scholar loan products within the last 5 years .

Evaluate cosigner release options

Some private lenders may offer cosigner exhaust options if the primary borrower meets specific refund qualifying criteria. With a co-signer release, the cosigner ’ south credit rating will be cleared of debt, but the loanword will remain in their credit history .

Research lender’s financial hardship relief options

Some on-line lenders offer scholar loanword unemployment postponement and forbearance, relief options that allow you to temporarily pause loanword payments until you get back on your feet. A distinctive patience period with a private lender can be two to three months .
To learn more, check out our fully guide on how to refinance student loans .

Student loan refinance application requirements

credit score wheel

Good credit

Most lenders require credit rating scores above 650, though you ’ ll need a higher score to qualify for the lowest advertised rates. If your credit is besides gloomy or you have a brusque recognition history, you ’ ll probably have to apply with a cosigner that has potent recognition and a stable income .

dollar sign

Proof of Income

stable annual income is all-important. Lenders will evaluate your debt-to-income proportion ( DTI ), meaning the percentage of your gross income that goes toward paying debts each month. Most companies require you to have a low DTI to qualify, but some may accept written job offers as sufficient testify .

pencil on top of a sheet of paper

Cosigner

Applicants with insufficient citation history, gloomy income or a low credit score will benefit from a cosigner. A cosigner can be a rear or relative that applies for the loanword with you and takes on the province of paying it back if you can ’ triiodothyronine. Cosigners must have sufficient income and impregnable credit rating .

diploma

College degree

A college degree international relations and security network ’ thymine always necessary to refinance your student loans, but having a degree gives you more options. Most lenders require a knight bachelor ’ s degree to qualify for refinance, and a few accept borrowers with consociate degrees .

identification card

U.S. citizenship or permanent residency status

Most, if not all, lenders require you to be a U.S. citizen or permanent wave nonmigratory to be eligible to refinance your scholar loans. If your student loans are foreign, it ’ s recommended that you build sufficient credit in the United States to qualify for refinance .

Student loan refinancing vs. Student loan consolidation

One of the benefits of refinancing through a private scholar lend lender is that borrowers can consolidate multiple loans into one loanword and have a single monthly requital under one servicer. here are the key differences between scholar loanword consolidation and refinance :

Private Loan Refinance Direct Consolidation Loans
Replaces one or more existing loans — federal or private — with a new private loan. Combines your existing federal student loans into one federal student loan.
Available for federal and private loans, depending on the lender. Available for federal student loans only.
Interest rates are determined by your credit history and potential market trends. This may result in a lower interest rate. Your new interest rate will be the result of the weighted average of the interest rates on the loans you’re consolidating, so this option does not reduce the amount of interest you’re paying each month.
Credit history will be verified. Does not require a credit check for approval.
Fixed- or variable-interest-rate loans. Can consolidate variable rate loans into fixed-rate loans.
Multiple repayment terms are available, often 5 to 20-years. Consolidation loans offer several repayment options besides the standard 10-year repayment plan and can extend the term of the loan by 12 to 30 years.
Parent PLUS loans can be refinanced under the adult child’s name, relieving parents of debt. Parent Plus loans cannot be consolidated under the adult child’s name.
You lose all benefits associated with federal student loans. You retain all benefits and protections available to federal student loans.

Student Loan Refinance and COVID-19

CARES Act

As of December 2021, the Biden presidency announced a further extension on the current suspension of federal scholar loanword payments, matter to and collections to August 31, 2022. That respite besides applies to default loans, as collections and garnishments have been suspended until that date .

Student loan servicers’ COVID-19 response

PenFed
• Forbearance or adjusted loan repayment plan for up to 6 months for those who qualify
• The option to file a COVID-19 Hardship Application for additional support
Consumers can find more information here.
Laurel Road
• Forbearance of 3 monthly payments
• The option to request an additional 3-month forbearance if you are still unable to meet your payments. To qualify for these additional 3 months your account must have been current before the first COVID-19 forbearance.
For more information, please refer to their Coronavirus Response page. This resource consists of a financial guide centered on the current pandemic and discusses how to better navigate hardship.
Splash Financial
• Lower rates in response to the economic crisis
Splash Financial encourages clients to reach out so they can negotiate accommodations like forbearance or waiving fees.
Earnest
• Short-term interest-only program that allows clients to make lower (interest only) payments for up to 90 days.
Navy Federal Credit Union
Eligible members have access to:
• Loan extensions
• Deferred payments
• credit card line increases
• Student loan forbearance through LendKey
• Overdraft protection, fee-free transfers
• Penalty-free certificate withdrawals.
The company encourages borrowers to contact their Student Loan Center at 1-877-304-9302 for more information.
Common Bond
• Natural disaster forbearance for the duration of the national emergency declaration. Interest will still accrue, but there are no additional fees.
• All late fees are waived
You can apply for this forbearance at commonbond.co/forbearance.
SoFi
• Payment deferral. • Unemployment protection • The option to request a patience period for up to 12 months in 3 month increments ( interest will placid accrue, and the liveliness of the loanword will extend ) .

• Unemployment protection
• The option to request a patience period for up to 12 months in 3 month increments ( interest will still accrue, and the life of the loan will extend ) .

Credible is excluded from this section because it’s a loan marketplace and does not issue loans. As it does not have its own COVID-19 policy in place, we recommend you refer to the specific loan servicer’s platforms for further information.

Latest News on Student Loan Refinance

scholar lend forgiveness was a central talking point on Joe Biden ’ s campaign chase, so far a year into his presidency, conclude to 43 million Americans silent carry a heavy scholar debt load. Learn more about what his presidency set out to do, and what it has and hasn ’ deoxythymidine monophosphate achieved in our recent article : Why Has n’t Joe Biden Forgiven All Your Student Loan Debt ? Short answer : He never Promised To .
CARES Act tax breaks, combined with the ongoing demand for workers, have prompted more employers to set up loanword refund programs. even some that already offered it increased their contributions or relax eligibility requirements. With this profit, employees could potentially pay off their student loans in half the time it ’ five hundred take differently. Read our article : More Companies Are Wooing Workers by Paying off Their student Loans to find out more .
The United States Department of Education recently issued a temp release running through October 2022 to broaden the eligibility requirements for the Public Service Loan Forgiveness ( PSLF ) plan. To see if your loanword might be among those forgiven, follow our short guidebook to getting you started : Public Service Loan Forgiveness : 5 Steps to Getting Your scholar Loans Canceled Under the Temporary Waiver .

Best student loanword refinance FAQ Can you refinance union student loans ? chevron-down chevron-up Yes, even though union loans can be consolidated, you can choose to refinance them rather. however, note that you will lose union scholar lend benefits, including repayment options. How to refinance a scholar lend ? chevron-down chevron-up beginning, decide if refinance is the veracious choice for you, as opting to refinance your federal loan will eliminate respective federal lend benefits, including gloomy interest rates, repayment grace periods and deferment/forbearance options. once you ‘ve made up your mind, you can shop for rates online and pick the best offer for you. How much can you refinance scholar loans ? chevron-down chevron-up You can refinance your scholar loan as many times as you want. scholar loans typically do n’t carry any origin or prepayment fees. If you ‘ve already refinanced your student loanword but have improved your credit score or found a better rate, you can refinance again. Why refinance scholar loans ? chevron-down chevron-up Refinancing your federal scholar loanword is n’t the best choice for everyone. federal loans normally have favorable terms and benefits you would lose by refinancing with a private lender. Before opting to refinance, look into the benefits of consolidating your federal scholar loans. Refinancing can be worth it only if it considerably lowers your interest rate and saves you money in the long run. What is the best student loanword refinance company ? chevron-down chevron-up The elementary answer is that the best student loan refinance company for you is just that : the best for your situation. If you want a customizable payment choice, possibly Splash Financial may offer better terms. In any lawsuit our best student lend refinance list can help narrow down your options .

How We Chose the Best Student Loan Refinance Companies

Loan refinance selection

Some lenders didn ’ t make our cut because they didn ’ metric ton offer a full range of refinancing options, such as for ParentPLUS scholar loans, which was a non-negotiable point in our criteria.

Payment options and fees

We favored companies with compromising vengeance policies, such as co-signer let go of and fiscal asperity relief options for qualified applicants. We besides looked for fiscal institutions that offered refinance loans without charging application or origin fees, or even prepayment penalties. additionally, we favored lenders who offered interest rate reductions for signing up for automatic payments, or autopay programs .

Customer experience

When we researched each company on our short list, it was significant for us to evaluate whether lenders had an excessive number of complaints or any ongoing actions with regulative agencies such as the Consumer Finance Protection Bureau .

Summary of Money’s Best Student Loan Refinance Companies of April 2022

  • Credible – Best Student Loan Marketplace
  • Splash Financial – Most Affordable Loan Payment Options for Medical Students
  • PenFed – Best Credit Union
  • Laurel Road – Best Loan Consolidation for Medical Students
  • Earnest – Best for Customizing Loan Payment
source : https://shoppingandreview.com
Category : News
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