Best Companies For Student Loan Refinancing

Refinancing student loans can be an effective way to reduce interest rates, lower monthly payments, and pay off debt faster. However, with so many refinancing companies to choose from, it’s essential to find a lender that offers competitive rates, flexible terms, and unique borrower perks. Here’s a look at some of the best student loan refinancing companies, their offerings, and what sets them apart.

SoFi

• Interest Rates: Fixed rates from 4.49% APR; variable rates from 4.99% APR
• Loan Terms: 5 to 20 years
• Minimum Loan Amount: $5,000
• Key Features:
• Offers career coaching, networking events, and other member benefits
• No application, origination, or prepayment fees
• Unique forbearance options for financial hardship, with up to 12 months available
• Best For: Borrowers looking for comprehensive member perks and career support.

SoFi is known for its range of borrower benefits beyond refinancing. In addition to competitive rates, SoFi offers networking opportunities, financial planning resources, and even community events for its members. This makes it an appealing choice for those who want more than just refinancing.

Earnest

• Interest Rates: Fixed rates from 4.45% APR; variable rates from 4.99% APR
• Loan Terms: 5 to 20 years with flexible customization options
• Minimum Loan Amount: $5,000
• Key Features:
• Precision-based payments let borrowers pick any monthly payment that suits their budget
• Skip a payment feature once every 12 months
• No origination or prepayment fees
• Best For: Borrowers who want maximum control over their repayment schedule.

Earnest offers a unique approach to loan payments by allowing borrowers to adjust their monthly payments and loan terms to meet their specific needs. The flexibility is ideal for those who want to match their loan repayment more closely with their financial situation.

Laurel Road

• Interest Rates: Fixed rates from 4.75% APR; variable rates from 5.10% APR
• Loan Terms: 5 to 20 years
• Minimum Loan Amount: $5,000
• Key Features:
• Special refinancing rates for medical professionals and healthcare workers
• No origination fees, application fees, or prepayment penalties
• 0.25% rate discount if you open a Laurel Road checking account
• Best For: Medical professionals and healthcare workers seeking tailored refinancing options.

Laurel Road has become a favorite among medical professionals due to its unique offerings and rate discounts for this group. With added benefits for those in healthcare, this lender is well-suited for borrowers with specialized financial needs.

Splash Financial

• Interest Rates: Fixed rates from 4.34% APR; variable rates from 4.60% APR
• Loan Terms: 5 to 25 years
• Minimum Loan Amount: $5,000
• Key Features:
• Offers refinancing for Parent PLUS loans and spousal loan refinancing
• No application, origination, or prepayment fees
• Access to a network of lenders for competitive rates
• Best For: Borrowers looking for a variety of options and specialized refinancing.

Splash Financial partners with a network of lenders, helping borrowers compare rates and terms. They also cater to unique situations, like combining loans with a spouse, making it ideal for families or couples with shared debt.

CommonBond

• Interest Rates: Fixed rates from 4.65% APR; variable rates from 5.00% APR
• Loan Terms: 5, 7, 10, 15, or 20 years
• Minimum Loan Amount: $10,000
• Key Features:
• Offers a unique “hybrid” loan with variable rates that switch to fixed after five years
• Forbearance of up to 24 months for financial hardship
• No origination or prepayment fees
• Best For: Borrowers interested in a hybrid loan option.

CommonBond’s hybrid loan option is perfect for those who want an initially lower rate without the full risk of variable  interest. This flexibility, combined with extended forbearance options, makes it a solid choice for borrowers who value flexibility in their loan repayment structure.

LendKey

• Interest Rates: Fixed rates from 4.59% APR; variable rates from 4.90% APR
• Loan Terms: 5 to 20 years
• Minimum Loan Amount: $5,000
• Key Features:
• Partners with community banks and credit unions to offer competitive rates
• Access to local lenders often provides better personalized customer service
• No application, origination, or prepayment fees
• Best For: Borrowers who prefer working with community banks or credit unions.

LendKey connects borrowers with community-based lenders, offering a personal touch and often lower rates than big lenders. It’s particularly attractive for those who appreciate the benefits of local banking but still want the flexibility of online loan management.

Comparison Table: Key Features of Top Student Loan Refinancing Companies

Factors to Consider When Choosing a Refinancing Company

• Interest Rates: Look for competitive APRs. Variable rates might offer lower starting rates, but fixed rates can provide long-term security.
• Repayment Flexibility: Companies like Earnest and CommonBond offer flexible repayment options, such as customized payments and forbearance options.
• Additional Perks: SoFi and CommonBond provide extra benefits like career coaching, networking events, and more, which can add value beyond simple refinancing.
• Loan Types and Eligibility: Some lenders, like Splash Financial, offer options for refinancing Parent PLUS loans or combining spousal loans, which is valuable for unique financial situations.
• Customer Support and Resources: Companies like LendKey, which partner with local lenders, may offer more personalized support.

FAQs: Common Questions About Student Loan Refinancing

Is refinancing the right choice for everyone?

Not necessarily. Refinancing is best for those who have a stable income and want to secure a lower interest rate. If you have federal loans and want to retain benefits like income-driven repayment, refinancing with a private lender may not be the best option.

Can I refinance both federal and private loans together?

Yes, most lenders allow borrowers to consolidate both federal and private loans. However, refinancing federal loans with a private lender means you’ll lose access to federal loan benefits, like Public Service Loan Forgiveness.
How often can I refinance my student loans?

There’s no limit on how often you can refinance, so if you find better rates in the future or your financial situation changes, you can refinance again to secure lower rates or different terms.

Do all refinancing companies require a co-signer?

Not necessarily. Many lenders don’t require a co-signer if you have a strong credit history and steady income. However, adding a co-signer may help you qualify for a lower rate.

What happens if I can’t make my payments after refinancing?

Many companies offer forbearance options for financial hardship, usually ranging from 12 to 24 months. However, it’s important to discuss this with your lender to understand specific terms and conditions.

Final Thoughts: Choosing the Best Refinancing Option for You

Choosing the right student loan refinancing company depends on your financial goals, income stability, and desired repayment terms. Each lender has its unique advantages: SoFi and CommonBond offer perks and extensive support; Earnest is ideal for repayment flexibility; and Splash Financial and LendKey offer specialized refinancing options that cater to specific borrower needs. Take time to compare rates, check eligibility requirements, and consider how each company’s unique offerings align with your personal and financial needs.