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Last update: September 30, 2023

Student loan refinancing, simplified

TuitionHero has you covered with simple explanations and refinancing options, empowering you to make confident financial decisions.

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Since 2019, we've helped over 500,000

students make informed decisions about financing their college education.

What is student loan refinancing?

Student loan refinancing is the process of taking out a new loan to pay off your existing student loans. The new loan may have a lower interest rate or better repayment terms, which can save you money on your monthly payments and overall loan costs.

Learn more about student loan refinancing

Who is eligible for student loan refinancing?

Student loan refinancing eligibility depends on financial stability and creditworthiness. Lenders typically look for a good credit score, steady income, timely repayment history, and a low debt-to-income ratio. Degree completion may also be required.

How much can you take out in private student loans?

A great time to refinance your student loan can be when interest rates have dropped, or your financial situation or credit score has significantly improved, allowing for potentially lower rates. It can also be beneficial if you wish to release a cosigner from the loan.

Can you refinance a student loan more than once?

There's no limit to how many times you can refinance your student loans. It makes sense to refinance again whenever interest rates go down or your financial situation improves. Refinancing is also usually free from fees like prepayment penalties and origination fees.

TuitionHero's best student loan offers for September 2023

This month, we have a variety of student loan refinancing options. We've partnered with top lenders to help you refinance at a lower rate and better terms

Citizens

Citizens

On lenders secure website

VARIABLE APR

7.05% - 12.40%*

FIXED APR

6.79% - 10.99%*
CollegeAve

CollegeAve

On lenders secure website

VARIABLE APR

5.99% - 11.99%¹

FIXED APR

5.99% - 11.99%¹
Discover

Discover

On lenders secure website

VARIABLE APR

1.87% - 5.87%

FIXED APR

3.49% - 6.99%
Compare Personalized Rates

The difference between student loan refinancing and consolidation?

Consolidation and refinancing are the two primary ways to restructure your student loans. Each option has unique characteristics, and they apply to different types of existing loans.

Loan Refinancing

Refinancing replaces an existing loan with a new one, often with better terms or a lower interest rate. This is common when a borrower's credit score improves, or interest rates drop.

Great for students who:

  • Have high-interest loans

  • Recently improved their credit score

  • Want to change their loan term

Loan Consolidation

Consolidation simplifies your loans by combining multiple loans so that there's just one monthly payment to manage. However, loan consolidation usually won't lower your interest rate.

Great for students who:

  • Want to manage fewer loan payments

  • Want to keep federal loan benefits

  • Want to change their loan term

Read more about refinancing vs consolidation
Read more about refinancing vs consolidation

TuitionHero tip

Refinancing makes the most sense whenever interest rates go down or your financial situation improves. That way you have better chances of lowering your interest rate and saving money over the lifetime of your loan.

Do's and don'ts of student loan refinancing

Here are a few things to consider before refinancing your student loans to help you make informed decisions, manage your finances effectively, and avoid unnecessary debt.

Do's

  • Consider your ideal monthly payment

  • Shop around for the best rates and compare multiple lenders

  • Make sure you have a strong credit score or cosigner before applying

  • Double-check that your lender has your current contact information

Don'ts

  • Settle on the first lender you see

  • Give personal or financial information to unfamiliar callers

  • Choose a loan with a higher interest rate than you had before

  • Refinance federal loans without considering the loss of federal benefits

How to refinance your student loans

Here's how our process works in just three easy steps:

  1. 1

    Complete our fast and simple form

    Give us the details in our 2-minute form so we can show you accurate rates from multiple top lenders.

  2. 2

    Complete our fast and simple form

    Next, we'll display an organized table with rates and terms from several top lenders. Our table makes it incredibly easy to compare and decide on the best loan for your specific needs.

  3. 3

    Choose the best loan for your needs

    Once you've found a loan you like, we'll help connect you with your chosen lender to complete the application process.

Illustrative purposes, actual results may vary. Prequalified rates are not a firm offer of credit.

Students love us

We are honored to have helped hundreds of students find the best loans for their needs. Check out some of our reviews below.

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Stefanie Tenorio

San Jose State University

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Lissette Rodriguez

San Diego State University

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Sofia Alves

Arizona State University

Compare our top lenders and refinance interest rates

Our top pick

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Repayment Options
  • Forbearance
Fees
  • No application fees
  • No prepayment penalties
  • No origination fees
  • No disbursement fees
Discounts & Benefits
Autopay discount: 0.25%
Loyalty discount: 0.25%
Loan Details
Loan amount: $10,000 - $750,000
Term lengths: 5, 7, 10, 15, 20-year

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Repayment Options
  • Forbearance
Fees
  • No application fees
  • No prepayment penalties
  • No origination fees
  • No disbursement fees
Discounts & Benefits
Autopay discount: 0.25%
Loyalty discount: 0.25%
Loan Details
Loan amount: $10,000 - $750,000
Term lengths: 5, 7, 10, 15, 20-year

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Repayment Options
  • Forbearance
Fees
  • No application fees
  • No prepayment penalties
  • No origination fees
  • No disbursement fees
Discounts & Benefits
Autopay discount: 0.25%
Loyalty discount: 0.25%
Loan Details
Loan amount: $10,000 - $750,000
Term lengths: 5, 7, 10, 15, 20-year

CollegeAve

Disclosures

Variable APR

5.99% - 11.99%¹

Fixed APR

5.99% - 11.99%¹

CollegeAve

Disclosures

Variable APR

5.99% - 11.99%¹

Fixed APR

5.99% - 11.99%¹

CollegeAve

Disclosures

Variable APR

5.99% - 11.99%¹

Fixed APR

5.99% - 11.99%¹

Discover

Disclosures

Variable APR

1.87% - 5.87%

Fixed APR

3.49% - 6.99%

Discover

Disclosures

Variable APR

1.87% - 5.87%

Fixed APR

3.49% - 6.99%

Discover

Disclosures

Variable APR

1.87% - 5.87%

Fixed APR

3.49% - 6.99%

Earnest

Disclosures

Variable APR

5.49% - 9.74%

Fixed APR

4.96% - 9.79%

Earnest

Disclosures

Variable APR

5.49% - 9.74%

Fixed APR

4.96% - 9.79%

Earnest

Disclosures

Variable APR

5.49% - 9.74%

Fixed APR

4.96% - 9.79%

LendKey

Disclosures

Variable APR

7.11% - 11.18%

Fixed APR

7.11% - 11.18%

LendKey

Disclosures

Variable APR

7.11% - 11.18%

Fixed APR

7.11% - 11.18%

LendKey

Disclosures

Variable APR

7.11% - 11.18%

Fixed APR

7.11% - 11.18%

Nelnet Bank

Disclosures

Variable APR

7.58% - 14.48%¹

Fixed APR

5.34% - 10.79%¹

Nelnet Bank

Disclosures

Variable APR

7.58% - 14.48%¹

Fixed APR

5.34% - 10.79%¹

Nelnet Bank

Disclosures

Variable APR

7.58% - 14.48%¹

Fixed APR

5.34% - 10.79%¹

SoFi

Disclosures

Variable APR

6.24% - 9.99%

Fixed APR

5.24% - 9.99%

SoFi

Disclosures

Variable APR

6.24% - 9.99%

Fixed APR

5.24% - 9.99%

SoFi

Disclosures

Variable APR

6.24% - 9.99%

Fixed APR

5.24% - 9.99%

Splash Financial

Disclosures

Variable APR

5.49% - 10.24%¹

Fixed APR

4.96% - 10.24%¹

Splash Financial

Disclosures

Variable APR

5.49% - 10.24%¹

Fixed APR

4.96% - 10.24%¹

Splash Financial

Disclosures

Variable APR

5.49% - 10.24%¹

Fixed APR

4.96% - 10.24%¹

MPOWER Financing

Disclosures

Variable APR

N/A

Fixed APR

12.69%*

MPOWER Financing

Disclosures

Variable APR

N/A

Fixed APR

12.69%*

MPOWER Financing

Disclosures

Variable APR

N/A

Fixed APR

12.69%*

Today’s most popular

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Citizens

Disclosures

Variable APR

7.05% - 12.40%*

Fixed APR

6.79% - 10.99%*

Factors to consider when refinancing a student loan

In order to find the best student loan refinancing options with the lowest interest rate and most favorable loan terms, you'll need to consider a variety of important factors while you're shopping. Here are just a few of the most important to look out for.

  • Interest rates icon

    Interest rates

    You should compare the interest rates of different lenders to find the best deal, ideally lower than what you're currently paying.

  • Hardship options icon

    Hardship options

    Some lenders may offer benefits such as temporarily delaying or reducing payments in case you experience financial hardships or fall behind on your repayment. You can learn more about these options in our comparison table below.

  • The loan term icon

    The loan term

    The term of the loan will affect the monthly payment amount. A longer-term loan will result in a lower monthly payment, but you will end up paying more in interest over the life of the loan.

  • Cosigner Release icon

    Cosigner Release

    If you have a cosigner on your existing student loan who no longer wishes to be attached to it, you should look for a lender with an option to remove your cosigner.

Your student loan refinancing questions answered

While the exact requirements vary by lender, you typically need to have:


  • A degree: You should be able to find a lender willing to refinance your student loans if you have a degree from an accredited university

  • A good credit score: A strong credit score will likely allow you to get a lower interest rate, which will save you money over the life of your loan

  • A steady income: You'll probably qualify for a lower monthly payment with a stable income, which will make it easier to afford your loan payments

When you refinance, there will be a hard credit inquiry the moment you apply for the new loan. A hard inquiry is when a lender looks into your credit history to make a loan approval decision. The good news is that any hard inquiry will have only a small and temporary impact on your credit score. Typically your score will drop by five points or less, and it will affect your credit report for two years at most.
There's no limit on how many times you can refinance your student loans. Not only that, but it can make a lot of sense to refinance multiple times, especially whenever interest rates go down or your financial situation improves. Refinancing is also usually free from fees like prepayment penalties and origination fees, so refinance away!

Whether you should consolidate or refinance depends on the kind of loan that you have.


  • When to consolidate: If you have one or more federal loans, you may want to consolidate those loans so that you can make a single payment and still maintain your federal loan benefits. There is no option to consolidate private student loans.

  • When to refinance: If you have one or more private student loans, you'll want to refinance any time your financial situation improves or interest rates go down so that you save money. While you could refinance your federal loans to get a lower rate, it would mean losing your federal loan benefits, so there's a trade-off.

Your credit score is one of the key factors that lenders look at when considering your application for a refinance loan. A higher credit score indicates to lenders that you're a lower-risk borrower, which could lead to a lower interest rate on your loan. Generally, you'll need a credit score of at least 650 to qualify for student loan refinancing.
There are a few options available to those looking to refinance their student loans with bad credit. The fastest and simplest option is to apply with a cosigner who has good credit. This can increase your chances of getting approved for a lower interest rate. Another option is to work on building your own credit by setting reminders and budgeting so that you can consistently pay bills on time. Lenders also consider how much money you're borrowing relative to how much you're making. If you can find a way to earn more, then you'll be more likely to qualify.

Student loan consolidation and refinancing are similar, but they're used in slightly different situations:


  • Consolidation is best for federal loans. It combines one or more federal loans into a new federal loan to let you make a single payment and qualify for government programs. Private student loans are not eligible for consolidation.

  • Refinancing is best for saving money. It gathers one or more existing federal or private loans into a new private student loan, ideally with a lower interest rate that will help you pay less over time.

A fixed rate is an interest rate that won't change over time. A variable rate is a rate that can go up or down during the life of your loan.

If interest rates are expected to rise, then a fixed rate loan may be the better choice. On the other hand, if interest rates are expected to fall, then a variable rate loan may be the better choice.

Some factors to consider deciding between a fixed rate and a variable rate student loan include:


  • The stability of your income: A fixed rate loan is predictable, which can be helpful if your income is unpredictable.

  • The length of your repayment period: A shorter repayment period will mean that you pay less interest overall, so a variable rate loan could save you money in the long run if you pay off your loan before the interest rate rises.

  • Your tolerance for risk: A variable rate loan means that your payments could go up or down, depending on changes in the market. If you are comfortable with this uncertainty, a variable rate loan could save you money.

While the exact requirements vary by lender, you typically need to have:


  • A degree: You should be able to find a lender willing to refinance your student loans if you have a degree from an accredited university

  • A good credit score: A strong credit score will likely allow you to get a lower interest rate, which will save you money over the life of your loan

  • A steady income: You'll probably qualify for a lower monthly payment with a stable income, which will make it easier to afford your loan payments

Your credit score is one of the key factors that lenders look at when considering your application for a refinance loan. A higher credit score indicates to lenders that you're a lower-risk borrower, which could lead to a lower interest rate on your loan. Generally, you'll need a credit score of at least 650 to qualify for student loan refinancing.
When you refinance, there will be a hard credit inquiry the moment you apply for the new loan. A hard inquiry is when a lender looks into your credit history to make a loan approval decision. The good news is that any hard inquiry will have only a small and temporary impact on your credit score. Typically your score will drop by five points or less, and it will affect your credit report for two years at most.
There are a few options available to those looking to refinance their student loans with bad credit. The fastest and simplest option is to apply with a cosigner who has good credit. This can increase your chances of getting approved for a lower interest rate. Another option is to work on building your own credit by setting reminders and budgeting so that you can consistently pay bills on time. Lenders also consider how much money you're borrowing relative to how much you're making. If you can find a way to earn more, then you'll be more likely to qualify.
There's no limit on how many times you can refinance your student loans. Not only that, but it can make a lot of sense to refinance multiple times, especially whenever interest rates go down or your financial situation improves. Refinancing is also usually free from fees like prepayment penalties and origination fees, so refinance away!

Student loan consolidation and refinancing are similar, but they're used in slightly different situations:


  • Consolidation is best for federal loans. It combines one or more federal loans into a new federal loan to let you make a single payment and qualify for government programs. Private student loans are not eligible for consolidation.

  • Refinancing is best for saving money. It gathers one or more existing federal or private loans into a new private student loan, ideally with a lower interest rate that will help you pay less over time.

Whether you should consolidate or refinance depends on the kind of loan that you have.


  • When to consolidate: If you have one or more federal loans, you may want to consolidate those loans so that you can make a single payment and still maintain your federal loan benefits. There is no option to consolidate private student loans.

  • When to refinance: If you have one or more private student loans, you'll want to refinance any time your financial situation improves or interest rates go down so that you save money. While you could refinance your federal loans to get a lower rate, it would mean losing your federal loan benefits, so there's a trade-off.

A fixed rate is an interest rate that won't change over time. A variable rate is a rate that can go up or down during the life of your loan.

If interest rates are expected to rise, then a fixed rate loan may be the better choice. On the other hand, if interest rates are expected to fall, then a variable rate loan may be the better choice.

Some factors to consider deciding between a fixed rate and a variable rate student loan include:


  • The stability of your income: A fixed rate loan is predictable, which can be helpful if your income is unpredictable.

  • The length of your repayment period: A shorter repayment period will mean that you pay less interest overall, so a variable rate loan could save you money in the long run if you pay off your loan before the interest rate rises.

  • Your tolerance for risk: A variable rate loan means that your payments could go up or down, depending on changes in the market. If you are comfortable with this uncertainty, a variable rate loan could save you money.

Frequently Asked Questions

Confused about how things work? Check out our FAQ below for quick answers to all your burning questions.

Absolutely not. You don't need to worry about your credit score at all when you search for personalized rates with us. The only time a hard credit check will occur is when you decide to take your next step by applying for a loan with a specific private lender who will need to determine your ability to make payments.
TuitionHero's private student loan shopping platform is 100% free of charge. There are zero surprise add-ons at the last minute and zero hidden fees.
Tuition Hero receives compensation from the loan provider when you complete a loan application and the loan is disbursed. When it comes to credit cards, the issuer compensates Tuition Hero when you apply for a credit card and are approved. No part of any of these fees fall onto you, and this doesn't affect how the loans and credit cards are displayed on our site.
We are a marketplace, not a loan, bank, or credit card issuer. This allows us to show you offers from multiple competitors side-by-side to help you get the best deal possible on your loans. We make comparison shopping easy by providing you several offers from multiple lenders within minutes. And when lenders compete for your business, it's a win for your wallet!
With so many private student loan options out there, it can be overwhelming! TuitionHero shows you rates and terms from a variety of lenders, so you can compare them side-by-side and easily spot the potential savings.

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