Refinance Student Loans

Shop for the Best Student Loan Refinance Option in Minutes

Student loan refinancing has become very popular with college graduates looking to save money, and for good reason. If you have steady income and good credit, refinancing student loans can get you a lower interest rate and a monthly payment that fits your needs.

With Purefy, you can find the lowest interest rate and apply for a student loan refinance in minutes — no need to complete five different forms just to compare the best refinance companies.

Today’s Rates Starting From 4.49% APR1

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How Purefy Helps With Your Student Loan Refinance Options

Our rate comparison tool helps you find the best student loan refinancing company for your situation. Here are a few things you can achieve through refinancing:

Lower Interest

Save money on interest with a lower rate and have more cash for other goals


Pay off your student loans sooner, and get rid of college debt for good

Customizable Repayment Plan

Choose the loan term that you want, not one you signed up for years ago

Flexible Monthly Payments

Select a monthly payment that fits your budget

Better Servicing

Switch to a new lender with a modern
website and real customer service

Sound complicated, or too good to be true? That’s where we come in.

We’ll help you learn if refinancing and consolidating student loans can benefit you. It just takes a few minutes of your time, and we’ll never sell your personal info. Checking rates has no effect on your credit score, and best of all? It’s free.

See How Much You Can Save

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Student loan refinancing combines your current loans into a single loan with a new rate and term. See how much you can save by entering your loan information below, or by getting quotes from multiple lenders using Purefy’s rate comparison tool.

Step 1: Enter Current Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Current Monthly Payment
The total amount of your monthly student loan bill.
Add Multiple Loans to Calculate

Step 2: Enter New Loan Information

New Interest Rate
Your updated interest rate after refinancing student loans.
The length of time you have to repay your student loan debt in full.

Add Multiple Loans

Insert additional loan

Step 3: See How Much You Can Save


Lifetime Interest


New Monthly



Current Loan New Loan Savings
Rate 6.7% 4.2% 2.5%
Lifetime Interest $37,520 $22,210 $15,310
Monthly Payment $1,146 $1,018 $128

Like what you see? Check your actual prequalified rates from the industry’s top lenders in just 2 minutes or less.

Student Loan Refinance Basics

How to choose the best student loan refinancing options
How to apply for a student loan refinance
Why you should consider refinancing student loans
Deciding to refinance federal student loans
Getting approved for student loan refinancing
What should I do after getting approved?
Which is the best student refinance lender for you?
What’s the difference between student loans consolidation and refinance?
How much can I refinance?

How to choose the best student loan refinancing options

Most people who are looking for the best student loan refinance and consolidation options will choose the company offering the lowest 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 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 allows you to check eligibility and 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.

However, there are other things to keep in mind. Aside from the different eligibility criteria and loan limits each company has, many lenders offer unique benefits, some of which may be more valuable to you than simply choosing the lowest student loan rate.

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. Through cosigner release, you can remove your parent from the loan once your credit is more established, but you’d still benefit from their income and credit profile by scoring a lower rate when you refinance.

Some lenders also offer deferment options for borrowers who want to pursue graduate degrees. If you do plan on returning to school, having that added flexibility may be a key factor in deciding where to refinance and consolidate student loans.


How to apply for a student loan refinance

Once you’ve 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 gather your student loan statements before you apply to speed up the application process.

After applying to refinance your student loans, the lender will run a hard credit check and give you a decision on the application. If you are preapproved, the lender will ask for documents to verify the information on your application — this usually includes an ID, income verification, and loan payoff statements, but may also include other documentation, depending on the lender’s guidelines.

When your documents are processed and your application is fully approved, you’ll be able to finalize your student loan refinance by eSigning your loan documents. Your new lender will pay off your existing loans and set up a new loan in your name with the rate and term you select.


Why you should consider refinancing your student loans

The primary reason that people refinance student loans 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, including:

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 wallet, you’ll free up cash 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.

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.

When refinancing your student loans, you can also choose a shorter 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.

Another big benefit of refinancing student loans is that it consolidates your loan payments into one.

All of your existing student loans that are refinanced will be paid off, and your new lender will create a single loan — so you’ll only have one monthly payment and loan servicer to worry about instead of multiple. If you hate the hassle of keeping track of more than one monthly payment, potentially with multiple loan servicers, then student loan consolidation can be a smart way to simplify your finances.

Did you apply for a private student loan in college with a cosigner? If you have strong credit, you can refinance student loans solely in your own name to release your cosigner. This will relieve them from being equally responsible for your monthly payments until the debt is paid in full.

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 are often lower, so this can allow you to save money when the market is strong.

On the other hand, you may have a variable rate but crave the structure of a fixed rate and a monthly payment that never changes. Refinancing can allow you to switch from a variable rate to a fixed rate (or vice versa), so you can choose the best option for your situation.

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.

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 customer service and benefits, which can make your life and money management a little easier.


Deciding to refinance federal student loans

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 loans 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

If you don’t want to give up 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.

Ultimately, a federal student loan consolidation will help simplify your finances, but is unlikely to save any money when compared to refinancing.


Getting approved for student loan refinancing

Each student loan refinance lender has basic eligibility requirements. For instance, citizenship requirements can differ from one lender to the next. 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 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 consider:

• Credit Score
• Income
• Debt-to-income ratio
• Employment history
• Degree and school
• Repayment history


What should I do after getting approved?

After finding the best company to refinance your student loans and going through the application process, you will need to e-sign your loan documents to make the refinance official. Be sure to take a close look at all the documents, particularly the promissory note, which is the agreement you are entering with your new lender, and the disclosures they provide, which help you understand the new loan that you are taking out.

After signing there will be a brief waiting period called the “Right to Cancel” period. This is usually 3 days and is also referred to as a “cooling period” by some lenders. During this time, you are allowed to cancel the loan if you change your mind. Once the Right to Cancel period is over, your funds will disburse and your loan will be finalized.

Your new lender will pay off the existing loans electronically, or by mailing a check to your old lender. It’s important to keep an eye on your old loans until they show as paid off. If you have payments due during this time, it is highly recommended you continue to make them to avoid any delinquencies. If you end up overpaying the loan, your previous servicer will send you a refund when the payoffs are processed.

Your new lender will then set up the new loan in your name, and you’ll be able to create an account for servicing and set up your first loan payment. Many lenders offer a 0.25% discount on your interest rate if you elect to use autopay, so be sure to check with your lender to see if you have this benefit.


Which is the best student refinance lender for you?

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 and stable income. 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.

Simply share a few details about yourself and your student loan debt with one easy form. You’ll then be able to shop around without visiting each lender’s website or filling out multiple cumbersome applications. If you like what you see, you’ll be able to select an option and apply in minutes.


What’s the difference between student loans consolidation and refinance?

Student Loan Consolidation

Student loan consolidation is available for federal student loans through the Direct Consolidation Loan offered by the U.S. Department of Education. This combines multiple loans into one new loan with a single monthly payment. This program is only available for federal student loans and cannot be used to consolidate private student loans.

The benefits of consolidating student loans are that you get one new loan with one monthly payment, which can be easier to keep track of than multiple loans with different balances and rates. The interest rate on your consolidation will be determined by the weighted average of your current loans’ rates, rounded up to the nearest 1/8th of a percent. As such, it can actually increase the amount of interest you will have to pay. You can’t lower your rate with consolidation as you can through refinancing. This is one reason why many people with a good credit decide to refinance student loans with a private lender.

Student Loan Refinancing

Like a student loan consolidation, a student loan refinance combines multiple loans into one. However, through refinancing, you can secure a new interest rate along with a shorter or longer repayment term. While Direct Consolidation Loans are only available for federal loans, with a student loan refinance you can combine both private and federal loans together.

If you refinance your student loans, you’ll have one monthly payment and loan as you would with consolidation. But unlike Direct Consolidation Loans, the new refinanced student loan is completely different from your old loans. You’ll have a new fixed or variable interest rate, repayment term, and monthly payment. However, it’s important to consider you would lose any benefits that come with federal student loans when you refinance, such as forbearance, loan forgiveness, and income-driven repayment. Please review your federal benefits before deciding to refinance federal student loans.


How much can I refinance?

Most student loan refinance companies have a minimum loan amount between $5,000 and $10,000. This does vary from lender to lender, so if you’re shopping around, make sure your loans meet the minimum before you decide to apply and refinance college loans.

If you utilize Purefy’s rate comparison tool, we’ll take the guesswork out of shopping for a refinance lender. You’ll only see results from lenders who are able to refinance the loan amount you enter.

But what if you have a significant loan balance? If your student debt is $200,000, $400,000, or even higher, you still have options. In recent years, many banks that refinance student loans have raised maximum loan sizes to $500,000, or even gone so far as to remove the limit altogether. These large loans are becoming increasingly common due to the cost of education. The highest balances are typically held by medical professionals or people with other advanced degrees who have a strong ability to repay the loan.

Everything you need to know about student loan refinancing

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