Today, student loans have become a problem that millions of Americans are facing. And it grows worse than more and more people pursue higher education.
There is a way out, though, and that’s by refinancing student debt through a student loan refinance company.
It’s often deemed as one of the best ways to get rid of a large amount of student debt. In this article, we’re going to review the top 10 best refinance companies for student loans.
Our mission is to help you find a company that can provide you with the lowest rates possible while fulfilling your requirements and needs.
One thing you have to understand about refinancing or consolidating student loans is that regardless of the company you choose, your new interest rate will depend on a number of factors. Some of those factors include:
- Credit score
- Loan amount
- Income level
Another thing to consider is that consolidating student loans means a longer repayment period.
If you want a lower monthly payment, then refinancing your student debt is the way to go.
Before you begin your search, be sure to understand how much money you can save by refinancing your loan. It’s important that you do proper research before.
To help make this process easier for you, we’ve reviewed the top 10 best student loan refinance companies (in no particular order) to help you make the right choice.
We’ve taken into account the company’s interest rates, repayment periods, customer satisfaction ratings, and overall benefits. But before we review each one of them, let’s first provide some useful tips to consider when refinancing student loans:
#1. Have all-around good credit. This is because lenders will also consider your debt-to-income ratio (DTI) among other factors when determining the rate you can qualify for.
#2. Be prepared to provide proof of income, employment status, and other important documents needed for verification purposes.
#3. Interest rates are high. It pays to shop around for the best rate that meets your standards. There are many companies available, both online and offline, that offer student loan refinancing.
#4. Do not consolidate loans if you’re in default or have a co-signer who is struggling with debt because these loans will be consolidated along with yours.
#5. You should also be aware that refinancing student loans is considered as a private decision, which means you will not be eligible for federal benefits such as loan forgiveness and repayment assistance programs.
10 Best Student Loan Refinancing Company
Now that we’ve covered some of the basic tips to consider when refinancing your student loans, let’s begin our review and comparison of the top 10 companies that provide benefits for student loan refinancing.
#1. SoFi
SoFi (Social Finance) is one of the most popular providers of refinancing student loans.
Since 2011, it’s played an important role in helping graduates reduce their monthly payments and save thousands of dollars by offering a wide range of repayment plans.
Unlike other lenders, SoFi does not charge any fees for late payments.
This is because the company understands that unforeseen circumstances may occur which could lead to delinquency or default on student loans.
Private refinancing options are offered by SoFi at a competitive interest rate of 5.24% APR with only 1 application required (no need to separately apply for each loan).
#2. CommonBond
CommonBond is another great option if you’re looking to reduce your monthly payments and save up to $14,565 over the lifetime of your loan.
The company has one of the lowest interest rates among all student loan refinancing companies, making it an excellent choice for borrowers.
CommonBond also offers benefits to both recent graduates and MBA borrowers by providing $100 in Amazon gift cards once you secure your loan with them.
Moreover, if you decide to travel abroad while on the job, CommonBond is willing to offer a travel assistance program for you.
#3. College Ave Student Loans
College Ave Student Loans offers a wide variety of refinancing options for students with competitive rates and flexible repayment plans.
With College Ave, you can choose between 5 different repayment programs to suit your current financial situation. This enables you to maximize your cash flow, reduce monthly expenses and save money in the process.
College Ave offers a competitive interest rate of 5.50% APR with no application fee or penalty for early repayment of student loans.
#4. Citizens Bank
Citizens Bank is another great refinancing company that provides you with flexible options for paying back your student loans.
It offers several different payment programs (fixed, graduated, and income-based repayment plans) to help borrowers manage their finances more efficiently.
Citizens Bank also provides a low-interest rate of 5.74% APR with no penalty for early payment. You can also save money on the overall cost of your loan by selecting a shorter repayment term (10 years or less).
#5. Earnest
Earnest is one of those lenders that go above and beyond to help borrowers succeed financially. This is why it provides benefits such as career coaching and internships on top of student loan refinancing services.
If you’re looking to join a company that’s willing to go that extra mile for you, Earnest may be the perfect option for you.
It offers competitive rates starting at 5.99% APR and allows borrowers to potentially cut down their repayment period from 10 years to as low as 5 years.
#6. LendKey
Lendkey is a unique lender in that it enables you to work with community banks and credit unions rather than large financial institutions. This enables borrowers to get rates that are more personally tailored to their needs.
Lendkey also offers several unique benefits for its clients (such as earning $200 in Amazon gift cards after you secure your loan with them). To learn more about the company and its services, visit LendKey.
#7. SoFi
SoFi (Social Finance) is a well-known company in the refinancing industry, and for good reason. Not only does it offer low-interest rates starting at 3.19% APR, but it also provides a wide variety of repayment plans to suit your current financial needs.
#8. Laurel Road
Laurel Road is one of the top student loans refinance companies out there, offering competitive rates and low fees.
It also provides access to benefits like career coaching, internship referrals, and networking events with over 300 employers (including Amazon).
This lender offers a low-interest rate starting at 5.74% APR and there are no origination fees to worry about.
Laurel Road also allows borrowers to select a loan term as long as 15 years, which can help decrease monthly payments and save you money in the long run.
#9. Earnest
Earnest is one of those lenders that go above and beyond to help borrowers succeed financially. This is why it provides benefits such as career coaching and internships on top of student loan refinancing services.
If you’re looking to join a company that’s willing to go that extra mile for you, Earnest may be the perfect option for you. It offers competitive rates starting at 5.99% APR and allows borrowers to potentially cut down their repayment period from 10 years to as low as 5 years.
#10. Citizens Bank
Citizens Bank is another great refinancing company, offering benefits such as career coaching, internship referrals, and networking events. You can also save money on the overall cost of your loan by selecting a shorter repayment term (10 years or less).
Which student loans should I refinance?
When it comes to refinancing student loans, there are a lot of things you should consider before making your choice-including the benefits and drawbacks associated with each specific lender.
That being said, here’s a simple breakdown of what you need to know about choosing a lender:
Benefits: The biggest benefit offered by most lenders is a lower interest rate, which can save you money over the life of your loan. Some lenders also offer special discounts (such as waiver of application fees) and flexible repayment options (such as extended repayment plans).
Downsides: Unfortunately, there are some drawbacks to refinancing your loans with any lender. For example, if you consolidate through a new company, you lose your right to any borrower benefits you could have received from your federal loans (such as student loan forgiveness and income-driven repayment plans).
Before making a decision on refinancing, do some research into what each lender has to offer. This way, you can choose the best option for your needs and budget.
How do I know if student loan refinancing is right for me?
Refinancing is a great way to help lower your monthly payments and save money in the long run.
However, it’s not for everyone – especially if you’d like to keep your federal student loan benefits (such as income-driven repayment plans).
The Bottom Line
There are many great student loan consolidation companies out there. If you’ve been looking for a way to refinance your student loans, these are some of the top options available.
To learn more about any of the companies reviewed above and their refinancing services, visit their website.
Disclaimer: This content is not provided or commissioned by any of the above-mentioned financial institutions. Any opinions, analyses, reviews, or recommendations expressed in this article are those of the author alone and have not been reviewed, approved, or otherwise endorsed by any of these entities.
