Refinance rates with Laurel Road start at 1.89%.
Checking your rates won’t affect your score.
From potentially lowering your interest rate to offering new repayment terms, student loan refinancing comes with a bunch of sweet perks.
One major benefit is the chance to simplify repayment by combining several loans into one. Instead of tracking multiple payments to different loan servicers every month, refinancing lets you make a single payment to a single lender.
But while combining your loans can simplify repayment, doing so is not always a financially savvy move. Instead of automatically refinancing all your loans, consider whether refinancing just one or two loans could save you more money in the end.
Why you should cherry-pick which student loans to refinance
With the average borrower paying off 3.7 student loans, according to Experian, refinancing all your loans into one easy payment might seem like an obvious move. But there are other factors to consider before you combine your debt into one lump sum.
You might save more money by refinancing just some of your loans
If your main goal is to save money, you might be better off refinancing just one or two loans, instead of all the ones you have in your name.
For example, let’s say you have three loans; Loan A has a 7.0% interest rate, Loan B has a 5.0% rate, and Loan C has a 3.0% rate. If, when you apply for refinancing, you get an offer for a refinanced student loan at a 4.5% rate, this would only save you money on your first and second loan.
In such a case, although you won’t get to simplify your monthly bills as much, you would probably want to save the most money on interest by refinancing Loan A and Loan B, but leaving Loan C alone.
You might want to keep access to federal plans and programs
Another reason you might not want to refinance all your student loans is to keep your access to federal plans and programs. Federal loans are eligible for a variety of income-driven repayment plans, forgiveness options and other benefits.
If you refinance federal loans with a bank, you turn those loans private and lose all federal perks. And if you run into financial hardship, your private lender might not be as flexible as the government is about adjusting your monthly bills.
Likewise, your new refinanced private loan won’t qualify for forgiveness programs such as Public Service Loan Forgiveness or Teacher Loan Forgiveness. If you want to remain eligible for federal programs, you could still refinance your private loans for a potentially lower interest rate, but leave your federal loans out.
Make the most of instant rate quotes to compare interest rates
If finding the lowest interest rate is your goal, take advantage of instant online rate quotes to compare refinancing offers.
After providing a few basic pieces of information — your name, loan amount and education level, for example — you’ll see what rates you could get on a refinanced loan. Searching for these rate quotes won’t impact your credit score at all, since they only involve a soft credit check.
Once you’ve seen your offers, you can use our refinancing calculator to estimate how much you’d save by refinancing. If you see an offer you like, you can go ahead and submit a full application.
Just remember to keep paying off your student loans in the meantime, since it can often take a couple of weeks or more before your refinanced student loan is up and running.
Shop around with multiple lenders to find the best offer
Just as you should be strategic by cherry-picking which student loans to refinance, you’ll also benefit by comparing offers from a variety of lenders.
Online lenders such as SoFi, CommonBond and Earnest offer some of the most competitive rates in the student loan refinancing space. Meanwhile, refinancing marketplace LendKey makes it easy to compare several offers at once from community banks and credit unions.
Along with searching for the lowest interest rate, consider other benefits, too. Some lenders offer forbearance if you run into financial hardship, for example. SoFi even has career coaching and community events for its customers.
Although saving money on interest might be your priority, don’t forget about secondary factors that could make one lender stand out above the rest.
Making the best decisions with your student loans
Refinancing can help you manage your student loans better, but be careful to go about the process in the right way. Pay close attention to the details of your offer, so you can choose the right lender and repayment plan for your needs.
Ultimately, everyone’s financial situation is unique, and the best decision for you might look different than it does for someone else. Assess each of your student loans individually so you can decide if refinancing all, some or none of them is the right decision for you.
Interested in refinancing student loans?Here are the top 6 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.89% – 5.99%1||Undergrad & Graduate|
|1.99% – 5.64%2||Undergrad & Graduate|
|1.99% – 6.84%3||Undergrad & Graduate|
|1.91% – 5.25%4||Undergrad & Graduate|
|2.25% – 6.53%5||Undergrad & Graduate|
|2.17% – 4.47%6||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews! |
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of Feburary 1, 2021.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 10/26/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 02/17/2021 student loan refinancing rates range from 1.91% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.
5 Important Disclosures for SoFi.
6 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.99%-5.15% APR and Variable Rates range from 2.17%-4.47% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.