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5 Best Student Loans Refinancing Companies You Should Explore

  • April 29, 2022
  • 9 min read
5 Best Student Loans Refinancing Companies You Should Explore

Last Updated on April 29, 2022 by Editorial Team

Best places to refinance student loans

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5 Best student loans refinancing companies

Make sure you get a lower rate and I know you might be thinking what’s the importance of getting a lower rate. But getting a lower rate is the purpose of refinancing.

People sometime don’t pay attention to what their interest rates are, so it’s important to make sure you understand where you currently are with your interest rates and with that, going through this process will lower your interest rates.

You will be surprised to know that even 1,2 or 3 percent can have a massive impact on how much you will be paying interest overall on your student loans.

Another thing we should keep in mind is our credit score. Refinancing your student loans will have a potential impact on your Credit score once you go through the full process.

Most companies will do what is called a soft pull when you are trying to get rates but once you go through the full process you will actually have your full credit score report which means you can

Some things you should actually keep in mind when refinancing your student loans is the potential benefits you might actually lose.

One of the benefits of subsidized loan originally is the disability and death benefits where if something happens to you, and you become disabled or eventually lose your life, the loan will not be pass on to your family members. Keep this in mind because some companies don’t offer this with refinancing.

5 Excellent places to refinance student loans

SoFi student loan refinancing

This might sound familiar, or you may have seen their logo somewhere on the internet before, they are definitely one of the best when it comes to student loans refinance.

As at the time of writing this, Sofi has a low variable interest rate starting from 1.10%.

One of the big features that Sofi has is that they will actually honor your 6 months grace period if you are still in school. Depending on where you are on your grace period, if you still have it, they will honor up to what you have left.

They also have no early prepayment penalty. That’s actually important to know because some companies do charge for paying early on your loan and especially if you are trying to get out of debt and pay out the student loans faster. You want to make sure you don’t gather any additional fee for wanting to pay off soon.

No fees for refinancing. This is also a big deal because you would rather not refinance and have to pay a couple of hundreds or even thousand of dollars to refinance your loans, which can cost you in the long run.

$5000 minimum
You need to have $5000 minimum to refinance, so if you are under that limit you won’t be able to do so.

Can’t remove cosigner
If you need a cosigner to get your refinancing, you actually can’t remove them from your actual loan. That’s something to keep in mind because if you require somebody at the beginning, and you want to have the loan for a long term, and you don’t want them to be on that forever, you won’t be able to remove them.

Unemployment protection.
This is also one of the great feature that Sofi has, so if something happens to you, and you lose your job, you will file a claim and be able to hold off payments until you get another job with a given period of time and that can really help you get back on feet.

Splash Financial Student loan refinancing

Has a variable interest rate starting from 1.74%
You can do what is called a soft pull on your credit score to see what you can potentially get for your rate.

If you go through the full process they will do a full inquiry on your Credit report, but it’s nice to know you can at least have an idea of what your rate would be before you get a full report.

No early prepayment fee
If you want to pay out your students loan even faster, this is very critical,, especially when we are talking about refinancing to save money. That actual money can be used, if it pleases you, to put towards your loans and pay them off faster.

No fee for refinancing.
They also don’t charge any fee for refinancing, which can save you a lot of money so that you can consistently be adding more towards your debt and having that gone even faster.

Good credit score.
One thing about splash financial is that you will need to have a decent credit score to be able to get a nice rate.

Earnest Student Loan Refinance

They have a variable interest rate as at the time of writing this starting 0.94%

No early payment penalty and no origination fee when it comes to starting up your refinance.

Analyse beyond credit score.
One thing about earnest is that they go above and beyond looking at just your Credit score, they do also analyse a little bit more than that base on your history and other factors which can be a very important thing if maybe you don’t have the best of credit score.

Skip 1 payment a year.
One of the other really great features that they do offer is the ability to actually skip a payment once a year and then adding it towards the backend if needed. And that can be really helpful in case of emergencies or something that comes up where maybe having that payment made is not the most important thing in your life in that month.

Of course you don’t want to just take advantage of and utilize it every year because you are essentially kicking the count down the road because you definitely have to pay for that regardless.

Disability and death benefits.
One of my favourite thing about earnest is that they do offer a disability and death benefits.
No all companies offer this and this can be an important decision when it comes to switching over two different companies and refinancing with them.

If something happens to you weather it’s a death or disability, that loan can will eventually get forgiven and will not be passed on to your family members.

CommonBond student loan refinancing

Has a variable interest rates of as low as 2.01%.

No early payment penalty
They also do offer a no early prepayment penalty as similar to the first two.

No fees for refinancing

These factors are essential when looking for what to work with.

You want to avoid paying to refinance your loan,, and you also don’t want to get penalty for paying off your student loans even faster.

You would be surprised when companies put that in the back end or somewhere in that hidden agreement section where you don’t usually pay much attention to, and then you end up having to pay fees if you want to pay soon to get out of debt faster

Offer Forbearance
Commonbond also do offer a forbearance if needed. Of course, you will have to supply them with proof to be able to get that forbearance.

Can remove cosigner after 36 months
They also do offer a great opportunity if you did need somebody to cosigned with you that after 36 months of on time payment, you can actually remove a cosigner.

You might be thinking why would you want to do that, to some people it’s actually a pretty important thing to be able to remove anybody from your actual loan so that when you are in full control, and you don’t have to rely on anyone.

LendKey Student Loan Refinance

They have a variable starting interest rate of about 1.49%.

No early payment penalty
They don’t charge you any early payment penalty.
And also no fees for refinance.

Flexible payment options
One great feature of Lendkey is that they offer flexible payment options, which can really help people in different kind of situations.

Remove cosigner after 12 on time payment
Lendkey also do offer the ability to remove a cosigner after only 12 months of on time payment.

You May Also Like 7 Best Private Student Loans Options You Should Explore

Requirements for refinancing student loans.

10 Best student loans refinancing rates

Earnest
Interest:Variable rate :0.94%
Fixed rate :2.99%
Including 0.25 discount autopsy

PNC bank
Variable rate : 1.09% 8.89% Fixed rate :2:99% 9.89%

College Ave
Variable rate : 0.94%_ 11.98%
Fixed rate : 2.99%_ 12.99%

Lend key
Variable rate : 1.49%
Fixed : 3.99%

Citizens Bank
Variable rate :N/V
Fixed rate : 3.48% _ 10.78%

Sofi
Variable rate : 1.10% _ 11.68 %
Fixed rate : 3.22% _ 11.16%

Sallie Mae
Variable rate : 1.13%_ 11.23%
Fixed rate : 3.50%_12.60%

Discover
Variable :1.29%_10.59%
Fixed rate : 3.99%_11.16%

Common bond
Variable rate : 2.01%_7.11%
Fixed rate: 2.94- 6.99%

Ascent
Variable rate : 1:46%_ 11.31%
Fixed rate : 3.87%_13.65%

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Featured lenders

  • Sofi
  • Earnest
  • Lendkey
  • Splash Financial
  • Commonbond
  • Sallie Mae
  • College Av
  • Ascent

Top Rated

  1. Earnest
  2. Lendkey
  3. Commonbond

Best for Borrowers without a Cosigner

  • Ascent
  • Funding U
  • Stride

Best Deferment Options

Best Cosigner Release Option

Lendkey – After 12 consecutive on-time payments, the cosigner will be removed.
After only 12 months of on-time payments, Lendkey allows you to eliminate a cosigner.

Best customer service

Sallie Mae

Best Flexibility for Repayment

Lendkey – One of Lendkey’s best features is that they provide various payment alternatives, which might come in handy in a variety of situations.

Once you refinance your student loans, you might find some extra money in your pocket and that little money can have a significant impact on your student loans.

Top Student loans refinancing companies you should also explore

Splash Financial

ELFI

LendKey

Earnest

PenFed

Citizens Bank

Laurel Road

SoFi

College Avenue

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Editorial Team

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