Refinance rates with Laurel Road start at 1.89%.
Checking your rates won’t affect your score.
Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government and many lenders. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.
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When Rebecca Estelle was laid off, she got creative with her student loan repayment. Estelle called up her lender, SoFi, and was delighted to learn that it’s among the top student loan refinance companies for job loss protection. The online company offered a three-month break from payments, plus career-services support.
“I was just trying to think of some ways to take the pressure off as I was searching for employment,” Estelle told Student Loan Hero. “A lot of my friends weren’t aware that this program existed, but that’s not a bad thing to ask about when you’re searching around and looking for a refinancing source.”
If you’re looking for student loan refinance companies for job loss safeguards, you’re already ahead of the game. Many find that bad news has a way of coming out of nowhere. Estelle, for example, had worked for over a dozen years at Swedish technology company Ericsson when she found out in October 2017 that she was unemployed with student loans to repay.
Estelle admitted that she didn’t know about SoFi’s unemployment protection program when she chose the refinancing company to rework her parent PLUS loan. She was most concerned with savings (Estelle refinanced $16,537.45 that she had borrowed to send her daughter to the University of Texas at Austin, lowering her interest rate from 7.90% to 4.875%.)
But interest-rate savings and repayment-plan options are just a few of the many ways to evaluate lenders. If you’re considering refinancing your student loans, you’d be wise to ask lenders a simple question: Do you offer job loss protection if I suddenly lose my primary source of income?
Some lenders don’t offer many types of deferment or forbearance — the latter is the ability to press pause on your repayment because of economic hardship. You might think other lenders like SoFi go above and beyond your expectations.
Keep in that not all job loss protection policies are created equal, however. For each policy, you’ll want to review:
- Eligibility requirements
- The length of forbearance available
- Whether it affects any plans to release a cosigner from your loan
Here are four lenders that could suit your refinancing needs:
|Lender||Months of protection||Noteworthy|
|1. SoFi||12||Protection is specific to involuntary job loss, with career coaching included|
|2. Earnest||12||Change your payment due date or skip a payment if your job isn’t in complete jeopardy|
|3. CommonBond||24||Forbearance isn’t specific to job loss and is awarded on a case-by-case basis|
|4. Citizens Bank||12||Nine on-time payments are required before you can apply for this discretionary and general forbearance|
Estelle said SoFi’s career-coaching perks easily trumped the outplacement program offered by her ex-employer. Estelle met weekly with a personal career coach provided by the lender. They improved her application materials, drawing compliments about her newly-formatted resume from one of the hiring managers she met with.
There were big-picture benefits, too. Estelle saw SoFi’s program as allowing her to:
- Maintain her credit: Although SoFi reports the loan’s forbearance status to the credit bureaus, her payment history didn’t end up with missed payments that could depress her credit score.
- Focus on finding a job: With her loan payments temporarily out of the picture, she was less stressed about finances and had more energy for her job search.
- Pay for household expenses: Not having to make her monthly payment to SoFi also gave Estelle some extra room in her budget for the bare necessities.
Estelle was especially happy with the results because she was so skeptical at the outset.
“When a company tells you that you don’t have to pay back your loan for a few months, you don’t know exactly what’s going to happen at the end,” said Estelle, who also received governmental unemployment assistance. “‘Was there some fine print I missed? Is this really going to sting me at the end?’ There were no surprises — the way they explained is the way everything turned out.”
Even SoFi, which launched its program in March 2017, has some fine print to read. It offers up to 12 months of forbearance, in three-month increments, over the life of borrowers’ repayment. And like Estelle, you must have lost your job “through no fault of your own.”
As with SoFi, Earnest’s forbearance policy isn’t limited to an involuntary job loss. Earnest’s support also extends to borrowers in the following situations:
- Your income has decreased, for example, due to a reduction in your work hours
- Your family expenses have suddenly and significantly increased
- You’re taking a leave from work to care for a child
Earnest also offers simpler flexibility options if your job situation isn’t tenuous enough to merit a full forbearance. For instance, you could move your payment date or skip one payment per year once you’ve made six consecutive, on-time payments.
CommonBond offers up to 24 months of forbearance over the life of your loan in cases where your income has decreased or disappeared.
There are a couple of eligibility requirements, however. For one, you must be less than 60 days delinquent on your repayment.
Citizens Bank, a more traditional lender (albeit with online operations), offers 12 months of forbearance. Its policy isn’t exclusive to job loss protection, catering to borrowers who experience other types of economic hardship, including trouble with medical bills.
You must make nine monthly, on-time payments before applying for forbearance. Electing forbearance also resets the clock on your path to cosigner release, if that’s a goal you have. You’d need to make three years’ worth of timely payments once you’re back from forbearance to remove a cosigner from your loan.
Be aware that lenders allow interest to accrue while you’re in forbearance. The interest capitalizes while you take a break from making payments, so don’t be surprised to find a larger outstanding balance upon your return. Unfortunately, that’s how student loan interest works.
You also have the option of making interest-only payments during your forbearance to keep the size of your loan from growing.
But although accruing interest is a drawback of forbearance, Estelle said the job loss protection she received paid significant dividends — specifically, it gave her time to get past her job loss so she could be prepared to continue her loan repayment. It also helped her find a new job within five months thanks, in part, to her SoFi-curated resume.
Student loan refinance companies with job loss protection could be a boon for you, too, but it’s wise to keep a healthy level of skepticism. Ask questions while you shop around, so you won’t be surprised by their answers when it matters most.
Compare your options in our student loan refinancing marketplace.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.88% – 6.15%1||Undergrad & Graduate|
|1.88% – 5.64%2||Undergrad & Graduate|
|2.50% – 6.85%3||Undergrad & Graduate|
|1.89% – 5.90%4||Undergrad & Graduate|
|2.25% – 6.39%5||Undergrad & Graduate|
|1.88% – 5.64%6||Undergrad & Graduate|
|1.90% – 5.25%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.13% – 5.25%8||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 June 1, 2021.
2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.59% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance 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 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Refinancing Loan Cost Examples
These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.
One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.
© 2021 Earnest LLC. All rights reserved.
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 Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
5 Important Disclosures for SoFi.
Fixed rates from 2.74% APR to 6.74% APR (with autopay). Variable rates from 2.25% APR to 6.39% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
6 Important Disclosures for Navient.
7 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 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.
8 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 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% 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.