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A Guide to Student Loan Refinancing Companies

Joseph Roltz

2022-02-05

Are you sick of making student loan payments? Is your financial future limited because of the amount of money that you owe in student loans? You aren't alone; there are thousands of students that hate dealing with what seems like an unfair system.  If you've been looking for a way to make your student loan repayments easier and help make your future look better, it's time to learn about the practice known as refinancing.

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What is Student Loan Refinancing?

Refinancing is when a private company or bank buys out your existing student loans and issues new ones at a lower interest rate than what was originally offered by the federal government. This makes paying off your debt both easier and less expensive. Some companies offer repayment terms that can stretch up to 25 years while others will allow 10 years. The longer you take to repay your debt, the more money you will pay back in interest over time.

When looking for a company to refinance with, make sure that the refinancing company understands how much you owe and what your repayment terms are like. You also need to make sure that they offer special incentives for students who have substantial amounts of student loan debt. Not everyone can afford this sort of help but most companies will give substantial benefits to those who qualify. 

Allowing steps like cosigners, accepting lower credit scores (below 580), or offering flexible repayment plans are usually enough incentives for students to leave federal loans behind and enjoy new terms at a lower rate. These options can be changed if needed; most companies allow borrowers to go back to a federal loan after three years if they find out that refinancing isn't their best option.

In order to refinance your student loans, you usually need good credit and a stable source of income. Not everyone will qualify for these programs since not everyone has the ability to repay the debt as promised. Students who have been laid off or those with disabilities may not be able to afford their monthly payments should their financial situation change drastically. Be sure that you meet all qualifications before signing up for a program; if you don't want to risk losing money and time on this loan, you need to make sure it is worth doing so.


Popular Student Refinance Companies

Be aware of the five companies outlined below: they offer some of the best benefits and offers when it comes to refinancing your student loans. However, they aren't the only companies in the market; make sure that you do your homework before choosing a company that fits your needs.

SoFi

SoFi stands for Social Finance Inc.; this company focuses on helping students who are drowning in debt to find better repayment options outside of federal loans. This company offers programs that are tailored for specific students depending on their needs and qualifications. Borrowers must have a credit score above 680 in order to qualify for lower rates when refinancing their student loans with SoFi. They also offer flexible repayment plans so you can plan out your payments in accordance with what is best for you without being too harsh or lenient when it comes to repayment.

The Benefits of Refinancing With SoFi: 

Lower rates from the start. This company targets students that have been rejected by federal loan companies and local banks, offering them a new chance at lowering their interest rates by refinancing student loans with them. They offer both variable and fixed interest rates on their loans, giving borrowers more options when it comes to repayment methods while also helping you find the right terms for your unique situation. Many of these companies offer reduced or even waived origination fees, saving you money when signing up for a program with this company.

Offers both flexible and extended payment plans. Not everyone is able to make a large monthly payment on top of everything else they have going on in their lives. This company offers flexible repayment plans that can give you anywhere from 5-25 years to pay off your loans, depending on the amount of money you owe and how much you currently make. Lower rates are given if borrowers agree to longer repayment periods.

Many payment options are available with this company. Not only do they offer different types of loans for students who qualify, including refinancing without a cosigner, but they also have options for parents who are trying to transfer educational costs onto their children by refinancing student loans. Repayment terms are offered up to 25 years depending on what each family is comfortable with when it comes to monthly payments.


CommonBond

CommonBond has been in the student loan refinancing business for a little while now. Founded by three students that we're unable to find companies interested in refinancing previous educational debts, this company offers competitive interest rates and free enrollment to begin refinancing your loans with them. Their repayment terms range from 3-15 years depending on what you need and how much money you owe in total.

The Benefits of Refinancing With CommonBond:

Lower rates when compared to federal options. This company helps borrowers lower their current interest rate by refinancing student loans; depending on the lender, these rates can be reduced anywhere from 1-5 percent just because you choose to work with them rather than the original provider. They also offer up to 1% of the loan amount in cashback bonuses, depending on how much you owe. If you want to save money and get a lower interest rate at the same time, this company can help you do both.

Offers flexible repayment terms ranging from 3-15 years. The longer your term is when refinancing student loans with this company, the more money you will actually end up paying because the interest rates are higher. However, shorter payment periods can also be risky if they give you a high-interest rate compared to federal lenders; the goal is to find a balance between these two options when applying for lower rates with CommonBond.

Extended repayment plans are available when refinancing student loans. In case you find yourself unable to make a large monthly payment, extended repayment options are available when refinancing with this company. These plans can range from 3-15 years depending on what you need, and the total amount of money you owe will determine the length of these terms.


LendKey

LendKey is a lender that focuses on helping people who have been turned down by other banks and lenders get lower interest rates when it comes to student loan refinancing. These companies have not been vetted by the federal government, but they do offer some competitive rates for borrowers needing help reducing their interest rates.

The Benefits of Refinancing With LendKey:

Lower interest rates from being rejected elsewhere. If you have been turned down by other lenders, this company works with you to help reduce your interest rates and monthly payments when refinancing student loans. They offer a simple application process that is quick and easy for those who need assistance right now.

No origination fees. When refinancing student loans, not all companies require that you pay a fee just for signing up. This company does not charge any origination fees when borrowers sign up for their program, meaning they can use the money saved on these costs to offer more competitive rates to borrowers overall.

Extended repayment terms range from 1-15 years depending on what each family needs. As with other companies offering types of services, the longer the term you choose, the more money in interest charges you will need to pay. However, shorter repayment terms can be risky if your rate is too high when compared to federal lenders; find a balance between these two options with this company.


Earnest

Earnest is a company that has made refinancing student loans easier than ever for borrowers who need help dealing with debt right now. They offer competitive rates when it comes to getting rid of student loan debt, and they work with every qualified borrower regardless of what their credit score may look like.

The Benefits of Refinancing With Earnest:

Longer repayment terms up to 20 years. When applying for refinancing student loans, this company offers monthly payments over a span ranging from 3-20 years depending on what families need and how much they owe overall. These extended repayment terms can help those who may need a little extra time to pay off their loans and interest charges, giving them the chance to save more money in the long run.

Lower rates than federal lenders. When applying for refinancing student loans, this company offers lower rates than all others so you can get a better deal right away. Each person has different needs when it comes to getting rid of debt and paying off what they owe; work with a lender committed to helping qualified borrowers regardless of what your credit score looks like.


Laurel Road

Laurel Road is one of the few companies offering refinancing services that are even more affordable and tailored specifically toward borrowers with bad credit scores. This means borrowers with low credit scores can work with this company to get rid of debt faster and save more money in the long run.

The Benefits of Refinancing With Laurel Road:

Lower rates than federal lenders. When it comes to refinancing student loans, Laurel Road offers lower interest rates overall so borrowers can save more money in the long term. Payment terms are anywhere from 5-25 years depending on what you may need help with, so find a lender that can meet all your specific needs no matter what they may be.


College Ave

College Ave is another company offering refinancing services designed to help students get rid of higher-interest debt faster. Not everyone who wants to refinance student loans has the best credit or job history because there are many different factors involved in determining eligibility. 

However, it's worth looking into the terms offered by this company just in case you qualify for lower rates than federal lenders can offer you when your finances are viewed in totality. Everyone deserves a chance at getting ahead financially, which means every borrower should have access to affordable options that suit their specific needs after graduation.

The Benefits of Refinancing With College Ave:

Lower rates than federal lenders. Refinancing student loans is one of the best ways to get ahead financially, and College Ave is committed to helping all eligible borrowers find the right repayment terms and rates based on their individual histories. They offer competitive interest rates and a wide variety of repayment options in order to accommodate different financial needs and credit profiles depending on your current situation when you work with them directly. Borrowers have several different repayment terms to choose from when using the services offered by this company, and interest rates start as low as 3.49%.


Citizens Bank

Citizens Bank is well known for offering refinancing services designed to help those working in public service lower their interest rates and save money on a monthly basis. Those who want to refinance student loans should not have to pay higher interest rates than other borrowers because they risk defaulting on their debts due to a lack of financial support. 

Refinancing student loans is one of the best ways to save money, and this company offers flexible repayment terms as well as low-interest rates when you work with them directly. It's important every borrower understands the true cost of credit before making any big financial decisions, which is why these lenders offer competitive rates that make it easier for students to handle their debt responsibly after graduation.

The Benefits of Refinancing With Citizens Bank:

Citizens Bank is one of the most trusted companies offering refinancing services for those who want higher chances of getting approved for lower interest rates than what federal lenders can offer. When you refinance student loans, it's important that you have access to the lowest rates possible so that your monthly payments are manageable and you don't risk hurting your credit scores by defaulting on any debts. Borrowers have several different repayment terms to choose from when working with this company in order to accommodate different needs, and interest rates start as low as 4.74%.


Conclusion

Student loan refinancing can be a great way to get your debt under control while securing lower interest rates than you might find with federal lenders. This company is committed to helping every borrower qualify for affordable monthly payments, and it offers a range of repayment plans that make it easy to save money on a monthly basis. These companies understand how important it is for borrowers to have access to quality refinancing services, which is why they work so hard to provide lower interest rates and flexible repayment terms.