Best Companies for Refinancing Student Loans in 2022

Best Companies for Refinancing Student Loans in 2022

Choosing the best alternative to refinance or consolidate your student loan debt can be quite difficult. It can be intimidating because there are so many different banks and lenders, coupled with an equal number of programs.

Before we start, it's crucial to comprehend the main distinctions:

Student loan refinancing is the process of replacing an existing loan or loans with a new private student loan.

Combining several Federal student loans into one one is known as student loan consolidation.

You can refinance and/or consolidate with any of the student debt refinancing businesses we'll cover. You can repay all of your loans or only a portion of them.

It can be difficult to know what to do, but generally speaking, you shouldn't refinance federal student loans unless you can afford to pay your debts off over the course of the typical 10 years. Refinancing, however, might be very financially advantageous if you can afford it.

If you're thinking about refinancing your federal student loans, you should know that the present period of deferred payments and 0% interest will end on August 31, 2022. To benefit from historically low interest rates before your loans unpause, you might want to start the refinancing procedure now, but you might want to wait until a bit closer to the expiration.

Rates for refinancing student loans: The refinancing rates listed here are updated every day. Shorter loan terms, variable rates, those with good credit scores, and people with low debt-to-income ratios typically have the lowest rates.

Peoples Bank

One of the few banks on this list is Citizens Bank. They provide lots of excellent lending possibilities, supported by the dependability of a bank, which is why we prefer them.

Some of the highlights are as follows:

Options for 5-, 7-, 10-, 15-, and 20-year payback terms

Options for fixed- and variable-rate loans

Fee-free application, origination, and disbursement

Discounts on interest rates are offered through loyalty programs.

A co-signer may also be released from loan responsibility under Citizens Bank's release program following 36 consecutive on-time principal and interest payments.

Last but not least, there is a $10,000 minimum loan amount, so a borrower with a little loan balance might not be able to use this.

Campus Avenue

Private student loans and student debt refinancing are both available through College Ave. They have some unique alternatives for repaying their private student loans, including interest-only payments, postponed payments, and fixed rate payments. Depending on the sort of degree they hold, current borrowers can refinance a debt for as little as $5,000 or as much as $300,000.


Earnest, one of the most accommodating student loan refinancing providers, is on this list because it allows you to choose any monthly payment and term between 5 and 20 years, saving you more money than conventional rates and durations.

Additionally, they allow you to make changes to your loan, like free refinancing, altering the due dates, and even skipping a payment once a year and making it up afterwards.

The income requirements for borrowers at Earnest are flexible. Additionally, they are cost-free and provide unemployment insurance to halt your monthly payments if you lose your job. Earnest is also one of the few mortgage companies that would refinance a loan even if you haven't finished your bachelor's or associate's degree (assuming you meet their other lending criteria).


One of the best lenders available is ELFI (or Education Loan Finance), whether you're wanting to refinance existing student loans at cheap interest rates or you're a parent looking to refinance a Parent PLUS Loan into your child's name.

For refinancers, the ELFI loan minimum is $10,000, and the maximum is your remaining loan sum. For borrowers with significant student loan debt, particularly doctors, this might be a tremendous victory.

Although ELFI doesn't set any particular credit minimums, they do demand that customers have a good credit history (or have a creditworthy cosigner). However, one of ELFI's minor drawbacks is that it is one of the few lenders on this list without a cosigner release program.

Education Lending ISL

A non-profit lender is ISL Education Lending (also known as Iowa Student Loan). ISL provides straightforward refinancing for student loans with fixed interest rates.

One of the few lenders that will let you refinance your student loans while you're still in school is ISL Education Lending. Additionally, they provide a tiered repayment plan for your loans.

Of course, if you choose to pay off your loans early, there are no prepayment penalties or origination fees either.

ISL Education Lending is listed on the Credible marketplace, so if your loan is authorized and funded, you could receive a bonus gift card worth up to $1,000.

Laurel Street

Although graduates of the medical and dental fields may benefit most from Laurel Road, all borrowers can take use of their student loan refinancing alternatives.

The fact that they're one of the only lenders to provide unique payment choices for medical residents is one of the things we like best about them. Currently, while you are a resident, you can pay as little as $100 per month toward the loans you have refinanced with Laurel Road.


LendKey is a student loan refinancing company that pools funds from local banks and credit unions to provide students with affordable student loans.

LendKey provides loans ranging from $5,000 to $300,000, based on the degree the borrower has obtained. For instance, the lowest amount, which is capped at $125,000, is for undergraduate degrees.

LendKey based its prices on your credit, and auto-pay users receive reductions. Additionally, there are no prepayment or origination fees. You should be aware that LendKey does not permit borrowers who did not complete their education to refinance.


One of the most recent additions to this list of the top student debt consolidation services is PenFed. The cause? They have some of the lowest rates we've ever seen for consolidating student loans, and they keep going down.

Since PenFed is also a member of the Credible platform, you can readily examine how it stacks up against the other leading lenders in the market.

PenFed offers loans up to $500,000, but you normally need to present evidence of substantial earnings or a suitable cosigner.

Another interesting option that some people might want to think about is the ability to consolidate spouse student loans, which PenFed is one of the only lenders we've found to provide.


Another of the initial lenders for student debt refinancing is SoFi, and it's likely the most well-known. They provide a comprehensive range of fixed rate and variable rate loans with repayment lengths of 5, 7, 10, 15, and 20 years. Indeed, SoFi provides mortgages.

No origination fees or prepayment penalties apply to SoFi loans. Additionally, SoFi provides borrowers with unemployment insurance and even has a career support program.

You need to have excellent credit or a cosigner for your loan in order to get the best rates. There is a cosigner release program offered by SoFi.

Best Rates for Refinancing Student Loans

Rates for refinancing student loans might vary significantly. You'll probably notice a rate listed, but that doesn't imply you'll automatically be eligible for the highest rate.

You normally need to refinancing a loan for a term of three years, have a credit score of at least 800, and have an excellent debt-to-income ratio in order to get the best rate. Other prerequisites can include taking up a variable rate loan and enrolling in autopay (direct debit).

Currently, the best APR range for refinancing student loans is 1.86 percent to 9.73 percent.

The Conditions for Student Loan Refinancing

When you originally took out your student loans, the standards were a little different than they are now. You only needed to complete the FAFSA to apply for federal loans. You might have been required to submit to a credit check in addition to the FAFSA for some graduate school loans (such as medical school loans).

This article was contributed on Jul 31, 2022