2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
Student loan refinance has become very popular with college graduates looking to save money — and for good reason. Refinancing rewards professionals that have steady income and good credit with low rates and less interest.
There are plenty of lenders out there competing for your business. With Purefy’s free tools, you can find the best interest rate and apply for a student loan refinance in minutes — without having to fill out five different forms just to compare the best refinance companies.
Student loan refinance has become very popular with college graduates looking to save money — and for good reason. Refinancing rewards professionals that have steady income and good credit with low rates and less interest.
There are plenty of lenders out there competing for your business. With Purefy’s free tools, you can find the best interest rate and apply for a student loan refinance in minutes — without having to fill out five different forms just to compare the best refinance companies.
Find savings from the best lenders with Purefy
When you refinance student loans, you finally have a chance to:
Sound complicated? That’s where Purefy comes in.
We’ll help find out if refinancing and consolidating student loans can benefit you, in just a few minutes of your time — without giving away your personal info or affecting your credit score.
That’s why we built our rate comparison tool. Just answer a few simple questions, and our technology will provide you with estimated interest rates for each lender where you qualify.
Precision Pricing: Pick Any Term Between 5—20 Years
Fixed Rate:
2.98% - 5.89% APR
Variable Rate:
1.99% - 5.74% APR
Term:
5 - 20 years
Minimum Income:
No minimum
Loan Limits:
$5,000 - $500,000
Refinance Student Loans With Your Spouse
Fixed Rate:
2.99% - 5.15% APR
Variable Rate:
2.19% - 4.49% APR
Term:
5, 8, 12, or 15 years
Minimum Income:
No minimum
Loan Limits:
$7,500 - $300,000
Loans Available Nationwide — Not Just for Iowans
Fixed Rate:
2.55% - 6.42% APR
Variable Rate:
Not offered
Term:
5, 7, 10, 15, or 20 years
Minimum Income:
No minimum
Loan Limits:
$5,000 - $300,000
Flexible Terms up to 20 Years
Fixed Rate:
3.34% - 6.19% APR
Variable Rate:
3.24% - 6.04% APR
Term:
5 - 20 years
Minimum Income:
$65,000
Loan Limits:
$10,000 - $150,000
Precision Pricing: Pick Any Term Between 5—20 Years
Fixed Rate:
2.98% - 5.89% APR
Variable Rate:
1.99% - 5.74% APR
Term:
5 - 20 years
Minimum Income:
No minimum
Loan Limits:
$5,000 - $500,000
Refinance Student Loans With Your Spouse
Fixed Rate:
2.99% - 5.15% APR
Variable Rate:
2.19% - 4.49% APR
Term:
5, 8, 12, or 15 years
Minimum Income:
No minimum
Loan Limits:
$7,500 - $300,000
Loans Available Nationwide — Not Just for Iowans
Fixed Rate:
2.55% - 6.42% APR
Variable Rate:
Not offered
Term:
5, 7, 10, 15, or 20 years
Minimum Income:
No minimum
Loan Limits:
$5,000 - $300,000
Flexible Terms up to 20 Years
Fixed Rate:
3.34% - 6.19% APR
Variable Rate:
3.24% - 6.04% APR
Term:
5 - 20 years
Minimum Income:
$65,000
Loan Limits:
$10,000 - $150,000
Earnest
PenFed
Iowa Student Loan
College Ave
Extremely flexible terms–pick any term of your choosing between 5 and 20 years.
High maximum loan limit of $500,000.
U.S. Citizen or Permanent Resident.
Loans not offered in Kentucky or Nevada.
Earnest does not offer cosigned loans.
Not offered.
Up to 12 months of hardship forbearance.
Spouse couples can combine loans into once refinance loan.
Borrowers become a member of the credit union.
U.S. Citizen.
Cosigner release available after just 12 consecutive on-time payments (not eligible for couple loans)
Student loans can be transferred from a parent’s name to the child’s, or vice versa.
Temporary and permanent hardship assistance available.
Borrowers with an associates degree or no degree are eligible to refinance.
Armed forces interest reduction – qualifying active duty servicemembers get 0.00% interest for up to 24 months.
Loan forgiveness if the borrower dies or becomes totally and permanently disabled.
U.S. Citizen or Permanent Resident.
Available after the first 24 consecutive monthly principal and interest payments are received on time and if the borrower meets the underwriting and credit criteria at the time the cosigner release is requested.
Not offered.
Has options to postpone payments due to qualifying financial hardships.
Extremely flexible terms–pick any term of your choosing between 5 and 20 years.
U.S. Citizen or Permanent Resident.
Not offered.
Not offered.
Forbearance is considered on a case by case basis should the borrower encounter a financial hardship.
Most people who are looking for the best student loan refinance and consolidation solution will choose the company offering the best interest rate on their preferred repayment term.
Purefy’s rate comparison tool is an easy way to compare lenders and find the best student loan refinance. You will be presented with real, prequalified rates from a selection of quality, vetted lenders — all based on your specific details, credit score, and borrower profile. There are no teaser rates to worry about, and checking rates on Purefy has no impact on your credit score.
This lets you make an informed decision by comparing rates, terms, and monthly payments all in one easy, sortable chart.
By finding a solution with a lower interest rate, more of your payment goes toward the loan principal rather than interest — allowing you to save a significant amount of money.
That said, there are other things to keep in mind. Besides the different eligibility criteria and loan limits each company has, many have unique benefits, some of which may be more valuable to you than simply choosing the best student loan rates.
For example, if you need a parent to cosign on your loan to qualify (or to get a better rate), you might be interested in a lender that offers a cosigner release program, so that you can remove your parents from the loan once your credit is more established. Some lenders also offer deferment options for borrowers who want to pursue graduate degrees — if this is something you plan on doing, that added flexibility may be a key decision factor in deciding where to refinance and consolidate student loans.
Once you have compared rates and selected your best student loan refinance option, you will be taken to the lender’s application, which generally takes less than 15 minutes to complete.
On the application you will have to include personal information, employment details, and information about your current student loans. It’s a good idea to get your student loan statements together before you apply, to speed up the process.
Once you apply to refinance student loans and are preapproved, the lender will ask you for documents to verify the information on your application — this usually includes an ID, paystub, and loan statements, but may include other documentation, depending on the lender’s guidelines.
When you get approval and finalize your student loan refinance, your new lender will pay off your old loans, and set up a new loan in your name with your new rate and term.
The main reason that people refinance is to get a lower interest rate, a more favorable repayment term, or both. But there are other great reasons to choose student loan refinancing, too.
Save More Money with a Lower Interest Rate
If you have high interest federal student loans or private student loans, getting a lower rate through a student loan refinance will reduce the total interest you pay (all else being equal).
With more money in your pocket, you’ll have more available funds to take care of your other financial needs and life goals — or pay off your student loans even faster.
Not only would a lower rate save you money on interest costs, but it can also lower your monthly payment to make it more affordable.
Reduce Your Monthly Payment
with a Longer Repayment Term
Obtaining a lower interest rate can decrease your monthly payments, but so could refinancing to a longer repayment term.
By selecting a longer term, you can ensure that your monthly payment is as low as possible to provide some relief to your monthly budget. Plus, you’ll have more expendable cash for other necessary expenses.
Pay Off Debt Faster with a Shorter Repayment Term
When refinancing your student loans, you can also choose a quicker repayment term than the Standard Repayment Plan of 10 years.
By choosing a shorter term, you can pay off your loans sooner and get rid of them for good — while maximizing your savings on costly interest.
Change to Only One Monthly Payment
Another big benefit of refinancing student loans is that it consolidates your loan payments into one.
All your existing student loans that are refinanced will be consolidated into one new loan — with only one monthly payment and one loan servicer to worry about. If you hate the hassle of keeping track of multiple payments, potentially with multiple loan servicers, then student loan consolidation can be a smart way to simplify your finances.
Drop a Cosigner from Your Loan
Did you apply for a private student loan in college with a cosigner? If your credit is good enough, refinancing student loans solely in your own name releases your cosigner from their duties of being equally responsible for your monthly payments until the debt is paid in full.
Get a Variable Interest Rate
Do you currently have a fixed interest rate with your student loans? Many private lenders offer both fixed and variable rates, which can be an attractive change for some borrowers.
Unlike a fixed rate, which stays the same for the entire life of the loan, variable rates fluctuate based on the current market rates.
Variable rates tend to start out lower than fixed rates, so it can be a smart decision to gain extra savings while your rate is reduced, if you’re planning to pay off your debt in the next couple of years.
Choose a Lender with Better Service
With federal loans, you don’t get a say in who your student loan servicer is. By refinancing your loans, you’ll have the opportunity to choose a lender based on their service and benefits to make your life and money management a little easier.
When you apply to refinance student loans, you can choose which of your federal student loans and private student loans to include. If some of your federal loans have great rates already, you don’t have to include those — you can decide to only refinance the ones with higher interest.
But keep in mind — your federal student loans come with valuable benefits that you will lose by refinancing including:
• Access to Income-Driven Repayment plans
• The chance to enter into federal forbearance or deferment
• The ability to qualify for loan forgiveness programs
It’s important to keep these in mind when considering whether to refinance your student loans.
If you don’t want to give up the federal benefits, but still want to take advantage of a student loan consolidation, your best option may be a federal Direct Consolidation Loan rather than refinancing. You apply for this student loan consolidation with the federal government, and all your federal student loans are combined into one new loan. Your interest rate will be based on the weighted average of your previous loans.
This is different from student loan refinancing, in which you can get a lower rate, if you qualify. Ultimately, a federal student loan consolidation will help simplify your finances, but is unlikely to save any money, compared to refinancing.
Each student loan refinance lender has basic eligibility requirements. For instance, different lenders have different citizenship requirements. While one may require both the borrower and cosigner to be U.S. Citizens, another may only require you to be a permanent resident. While comparing your refinance options, you can also compare basic requirements and see special program features for each lender.
After determining that you meet the basic eligibility requirements, you’ll want to consider if you’ll qualify for the interest rate you want. Although each lender has different methods for determining creditworthiness, below is what lenders typically look for in a student loan refinance applicant:
• Credit Score
• Income
• Debt-to-income ratio
• Employment history
• Degree and school
• Repayment history and negative public records
Student loan refinancing is an effective way to manage your debt — helping you to save money, reduce your payment, and streamline your loans.
Refinancing is a smart choice for those with good credit, a stable income, and who don’t plan on using their federal loan benefits. By doing your homework and comparing your refinancing options, you can ensure you make the right decision for your financial needs.
And by using Purefy’s rate comparison tool, you can quickly and easily view interest rates, terms, and more from the best lenders — all in one place.
Just share a few details about yourself and your student loan debt with one simple form. You’ll then be able to shop around — without needing to visit each lender’s website while filling out multiple cumbersome applications. Simply choose your best refinancing solution, and apply.
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At Purefy, we do our best to keep all information, including rates, as up to date as possible. Keep in mind that each private student loan refinancing lender has different eligibility criteria. Your actual rate, payment and savings may be different based on credit history, actual interest rate(s), loan amount, and term, including your co-signer [if applicable]. If applying with a co-signer, lenders typically use the higher credit score between the borrower and the co-signer for approval purposes. All loans are subject to credit approval by the lender.
Purefy’s comparison platform is not offered or endorsed by any college or university. Purefy is not affiliated with and does not endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the private sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Purefy reserves the right to modify or discontinue products and benefits at any time without notice.
