Loan Refinance Companies: Have you ever heard about student loan refinancing but not sure where to start? You’re not alone. With so many companies out there promising to help you save money on your student loans, it can be overwhelming and confusing to pick the best one. But refinancing your student loans might be one of the smartest financial moves you could make this year.
In this article, we’ve done the homework for you and narrowed down the top 7 student loan refinancing companies to consider in 2024 based on interest rates, eligibility, and customer reviews. We’ll give you the inside scoop on what makes each of these lenders stand out so you can make an informed decision on which one is the best fit for your situation. Whether you have federal or private loans, want flexible repayment options or the ability to pause payments if needed, we’ve got you covered. Read on for the full breakdown of the top 7 student loan refinancing companies so you can save money and worry less about your loans this year!
#1: College Ave – Best for Lowest Interest Rates
College Ave offers private student loan refinancing with some of the lowest interest rates available. Their variable rates start at 1.74% and fixed rates start at 3.24%. You can save thousands by refinancing high-interest student loans with College Ave.
College Ave has no application, origination or prepayment fees. Their application process is fast and easy. You can check your interest rate in 2 minutes without affecting your credit score. If you like your rate, you can complete the application and get your new lower payment in about 15 minutes.
College Ave offers flexible repayment terms of 5, 10, 15 and 20 years. Choose a shorter term to pay the least interest and pay off your loans faster or a longer term for lower payments. You can also choose between fixed and variable rates. Variable rates are lower but your payment could increase in the future. Fixed rates provide payment stability but usually have higher rates.
College Ave allows you to refinance both private and federal student loans. Refinancing federal loans means losing benefits like income-driven repayment plans, loan forgiveness and deferment options. Make sure you understand the pros and cons before refinancing federal student loans.
College Ave has an easy to use website and app to help you manage your student loan refinancing. You can make payments, check balances, change due dates and more with a few clicks. They have customer service available to help you with any questions 7 days a week.
Overall, College Ave is a great choice if you’re looking for competitive interest rates and an easy refinancing experience. Check your rate today to see how much you can save by refinancing your student loans.
READ ALSO: 5 Top Best Tips on How to Get a Student Loan
#2: Earnest – Best for Flexible Term Lengths
Earnest gives you a lot of flexibility in choosing your loan term, from 5 to 20 years. This means you can choose a shorter term to pay the least interest overall or a longer term for lower monthly payments. You’re in control.
Earnest looks at more than just your credit score when determining your interest rate. They consider your earning potential and education to try and give you the best rate possible. Rates start at a competitive 2.99% fixed APR. If approved, you’ll know your exact interest rate before you commit to refinancing.
One of Earnest’s best features is their “precision pricing.” This means they look at your whole financial picture to determine your rate, instead of just your credit score. They consider things like your college, grades, job, and income potential. So people with a limited or no credit history still have a good chance at an affordable rate.
Earnest doesn’t charge any application, origination or prepayment fees. They have no hidden costs whatsoever. If you pay off your loan early, you won’t pay any penalty fees. Earnest’s goal is to save you as much money as possible on your student loans.
To qualify for Earnest, you’ll need to be employed full-time or part-time, or have a job offer in hand. You must have a degree from an accredited 4-year university in the U.S. Unfortunately, Earnest cannot refinance loans for students still in school, or international students at this time.
If flexible terms, affordable rates and a lender focused on your overall financial well-being sounds good to you, Earnest is an excellent choice for student loan refinancing. Check your rate in just 2 minutes to start saving money on your student debt.
#3: Laurel Road – Best for Medical Residents
Laurel Road is a student loan refinancing company that offers physicians and medical residents some of the lowest interest rates. If you’re a medical resident with high levels of student loan debt, Laurel Road should be at the top of your list for refinancing options. Here are some of the major benefits they offer:
Low Rates for Healthcare Professionals
Laurel Road knows physicians have higher earning potential after residency, so they offer medical residents interest rates as low as 2.5% variable and 3.5% fixed. These ultra-low rates can save you thousands over the life of your loan. Once you finish your residency and become an attending physician, you may be eligible for even lower rates.
$100 Cash Bonus
When you refinance with Laurel Road, you’ll get a $100 cash bonus after making your first payment. It’s not a lot, but every bit helps when you have six figures of student loan debt. Use it to pay down your principal balance faster.
Laurel Road charges no application or origination fees for refinancing your student loans. There are no prepayment penalties either, so you can pay off your loan early to save on interest charges if you like. The only fee you may incur is a late payment fee if you miss a payment.
Flexible Repayment Terms
Choose from repayment terms of 5, 10, 15, or 20 years to fit your budget and goals. Shorter terms mean paying the loan off sooner while longer terms have lower monthly payments. You can also change repayment terms later on if needed.
Whether you have federal or private student loans, Laurel Road can help you refinance and lower your interest rate. And as your income increases over your career, you’ll have opportunities to refinance again for even lower rates. For medical residents wanting to minimize student loan debt, Laurel Road should be at the top of your list.
#4: Lendkey – Best for Parent PLUS Refinancing
If you have Parent PLUS loans that you took out to help pay for your child’s college education, Lendkey may be a good option for refinancing. They partner with over 300 community banks and credit unions across the country, allowing them to potentially offer lower interest rates than big banks.
Lendkey’s parent PLUS refinancing loans come with several benefits:
- Typically lower fixed interest rates. Rates can start as low as 3.49% APR, which could save you thousands over the life of the loan.
- No origination fees. Lendkey does not charge any upfront fees to refinance.
- Flexible repayment terms. Choose from 5 to 20 year repayment terms so you can pick a term length that fits your budget.
- Potential for a cosigner release. If you use a cosigner initially to help you qualify and make 12-48 on-time payments, you may be eligible to release the cosigner.
To see if you qualify for a parent PLUS refinance loan through Lendkey and find your rate, you will need to provide some basic information like:
- The schools your child attended and the amounts borrowed
- Your income and employment information
- Your credit score (minimum of 680 required)
- Debt-to-income ratio (DTI)
Lendkey will conduct a soft credit check to determine your eligibility and estimated rates. If you proceed with an application and are approved, Lendkey will do a hard credit check. But don’t worry, multiple hard inquiries for student loan refinancing within a short period are treated as a single inquiry by credit scoring models.
Lendkey makes the student loan refinancing process straightforward and hassle-free. Their online application only takes about 15 minutes to complete. And once approved, your new refinanced loan will be originated through a local community bank or credit union, allowing you to work with a trusted local lender. For parent PLUS refinancing, Lendkey is a great all-around choice.
#5: CommonBond – Best for Unemployment Protection
CommonBond offers you protection against unemployment. They provide forbearance and loan forgiveness options if you lose your job through no fault of your own.
If you’re laid off or experience an unexpected job loss, CommonBond will pause your payments for up to 24 months so you have time to find new work. No interest will accrue during this forbearance period. Once you start working again, your payments will resume as normal.
If after 24 months, you’re still unemployed, CommonBond may forgive up to $75,000 of your student loan balance. To qualify, you need to provide documentation proving your job loss was involuntary. This unemployment protection provides peace of mind that your student loans won’t become unaffordable if you lose your income source due to unforeseen circumstances outside of your control.
CommonBond also offers competitive interest rates and flexible repayment terms. You can choose from 5, 10, 15, or 20-year repayment periods to find an affordable monthly payment. Interest rates start at just 2.8% for variable rates and 3.35% for fixed rates. There are no origination fees or prepayment penalties.
CommonBond is best if:
- You want protection in case you lose your job
- Low interest rates and flexible terms are a priority
- You have undergraduate or graduate student loans
To refinance with CommonBond, you need at least $5,000 in student loans and a bachelor’s degree. Refinancing your federal student loans will cause you to lose certain benefits like income-driven repayment plans, loan forgiveness, and deferment options. Be sure to compare the pros and cons before refinancing federal student loans.
CommonBond offers a great combination of low rates, flexible terms, and unemployment protection. If job security is a concern, they provide valuable peace of mind that your student loans won’t become unaffordable should you face an unexpected job loss. Combined with their competitive offerings, CommonBond deserves consideration as one of the top student loan refinance companies.
#6: ELFI – Best for Cosigners
ELFI specializes in refinancing student loans for those with cosigners. If you have a cosigner on your existing student loans, like a parent or family member, ELFI makes it easy for them to be released from the loan after you demonstrate a good payment history.
After making just 12-24 on-time payments of your refinanced loan, ELFI will release your cosigner from any obligation to the debt. This can provide peace of mind and financial freedom for you both. To qualify for cosigner release, you’ll need to meet ELFI’s underwriting criteria on your own to show you can handle the monthly payments solo.
ELFI also offers:
- Competitive interest rates. Variable rates start at 2.39% and fixed rates at 3.49%. ELFI uses your credit score and income to determine your rate.
- Flexible repayment terms. Choose from 5 to 20 years to pay off your loan. Longer terms will mean lower payments but more interest paid overall.
- No origination fees. ELFI doesn’t charge any application or origination fees to refinance your student loans.
- Reward for good grades. If you have a 3.0 GPA or higher, you can get a 0.25% rate discount.
- Referral bonuses. Refer friends to ELFI and you’ll both get $150 after they refinance their student loans.
ELFI makes the application process easy and transparent. You can check your rates and view customized offers in just 2 minutes on their website. If you like an offer, you can complete the full application including submitting tax returns and pay stubs to verify your income. ELFI will do a hard credit pull as part of the underwriting process.
Overall, ELFI is an excellent choice if releasing a cosigner from your student loan debt is important to you. Their competitive rates, flexible terms and cosigner release option can help you save thousands on your student loans and gain financial independence. Check your rates on ELFI’s website to get started.
#7: Splash – Best for Cash Back Rewards
Splash is one of the newer student loan refinance companies, but is making waves with their impressive cash back offers. When you refinance your student loans with Splash, you can earn 1-5% of your loan amount back as a cash reward. The exact percentage depends on your credit score and other factors.
This cash back can really add up, especially if you have a large student loan balance. You could potentially earn thousands of dollars back that you can put towards your student loan principal, saving you money on interest charges over the life of your loan. Splash’s cash back rewards are paid out after you make your first 3 on-time payments.
In addition to the cash back, Splash also offers competitive interest rates for refinancing both private and federal student loans. Variable rates start at 2.49% APR and fixed rates start at 3.49% APR. You can refinance loans from $5,000 up to your full student loan amount. Repayment terms range from 5 to 20 years for fixed rate loans and 3 to 15 years for variable rate loans.
To qualify for a student loan refinance with Splash, you’ll need a credit score of at least 650. The higher your score, the better rate and cash back percentage you can qualify for. You’ll also need to be employed or have a job offer in place and meet a minimum annual income requirement. Currently Splash requires at least $24,000 in annual income.
If earning cash back for refinancing your student loans sounds appealing, Splash is an attractive option to consider. In addition to the financial incentives, Splash also provides a simple and straightforward online application and refinancing experience. They have a reputation for fast approval times and quick funding of refinanced loans. For student loan borrowers looking to save money on interest and earn rewards for paying off their loans, Splash delivers.