Best Lenders to Refinance Student Loans

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Quick and Easy. These are the best online lenders to refinance student loans in October 2018.

Apply Nowon LendKey’s Secure Site
  • APR Range2.47% to 8.03%
  • Origination FeeNone
  • Eligible LoansPrivate & Federal
  • Terms5, 7, 10, 15, or 20 year repayment plans
  • Average Monthly Savings$192/month in savings
  • Credit ImpactApplying won’t affect your credit

Highlights

  • Click “Apply Now” to get started on LendKey’s website
  • Available for both undergraduate and graduate school student loans
  • Higher chance of approval with LendKey’s network of not-for-profit lenders
  • Very easy application process, takes 2 minutes to check your rates with no impact to your credit score or obligation to take funds
  • No origination fees, application fees, or prepayment penalties
  • Unemployment protection up to 18 months of paused loan payments while in-between jobs
  • No handoffs – you’ll be with LendKey’s fully trained customer care team from your application to your final payment

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  • APR Range2.47% to 6.99%
  • Origination FeeNone
  • Eligible LoansPrivate & Federal
  • Terms5, 7, 10, 15, or 20 year repayment plans
  • Reviews98% would recommend SoFi to a friend
  • Credit ImpactApplying won’t affect your credit

Highlights

  • Click “Apply Now” to get started on SoFi’s website
  • No origination fees, no prepayment penalties
  • 3, 4, 5, 6, or 7 year repayment terms
  • Access to SoFi member events that range from dinners and happy hours to panel sessions and networking opportunities
  • Get a 0.125% rate discount on an additional SoFi loan—just for being a member
  • If you lose your job, SoFi will temporarily pause your payments and help you find a new job
  • Get pre-qualified online with no hidden fees and no obligation

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  • APR Range2.85% to 7.59%
  • Origination FeeNone
  • Eligible LoansPrivate & Federal
  • Terms5, 8, 12, or 15 year repayment plans
  • Average Lifetime SavingsInterest savings of $19,783 hypothetical scenario
  • Credit ImpactApplying won’t affect your credit

Highlights

  • Click “Apply Now” to get started on PenFed’s website
  • PenFed was founded in 1935 and has over 1.6 million members and over $24 billion in assets
  • No prepayment, application or origination fees
  • Unique loan programs such as spouse loans, allowing individuals and couples to consolidate and refinance their federal and private student loans into a single loan
  • Purefy Inc. is a financial technology and services firm specializing in student loans
  • Minimum loan amount is $7,500, and the maximum is $300,000
  • Get pre-qualified online with no hidden fees and no obligation

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What is Student Loan Refinancing?

In today’s times, student loans are often necessary to get ahead. A college degree equates to a higher lifelong income. We all know this. What many don’t know, however, is that student loans can be quite costly, especially in today’s rising interest rate climate.

Refinancing student loans is simple. For every student loan, there is an interest payment. Sometimes, these interest rates can be quite high, near 6% to 10%. When you refinance your student loan, you replace your high interest rates with low interest rates, and you save money. It’s that simple.

Reasons You Should Refinance

If any of the following are true statements, you should strongly consider refinancing your student loans:

  • Your current student loan interest rate is greater than 5%
  • You have fallen behind on payments and owe more in interest and penalties
  • Your monthly payments have recently increased because your variable interest rates increased
  • You want use a better lender than you are currently using

We spent 100+ hours searching and contacting the best online student loan refinance and consolidation sites of 2018. None of the lenders on this page have hidden fees, and all are highly rated and respected. For 2018, LendKey is our favorite, in part because their rates are among the lowest, the application process is easy, and it doesn’t impact your credit score.

Student Loan Myths

One of the most common misconceptions about refinancing student loans is that it is somehow a dangerous process that could adversely affect your credit score. This is NOT true. Refinancing student loans can save you money, especially if you move from a variable (that is likely to increase in cost as federal interest rates rise) to fixed plan that cannot increase.

Another common myth with student loan refinancing is that it is harmful to check to see if you qualify. With the lenders listed on this page, it’s always free to qualify, there’s no obligation to take funds, and it won’t impact your credit score at all. The only way a student loan refinance can harm your credit score is if you fail to make your payments.

What is Options Bro?

Options Bro is an online financial information site dedicated to providing independent, informative, and objective reviews, comparisons, and tutorials on all things finance.

Collectively, we’ve spent hundreds of hours examining the most popular financial products and tools. Bottom line, we simplify and explain the myriad of consumer financial options available today, so you can make smarter financial decisions.

Updated: October 17, 2018

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