Top Student Loan Refinancing Options - October 2021

With high student loan interest rates, college grads can end up owing far more than they initially borrowed, and their monthly minimum payments can take up a significant portion of their paychecks.

If you have student loans and want to tackle your debt head-on, you can use student loan refinancing to qualify for a lower interest rate and save money over your loan's life. There’s no fee to refinance your education loans, and you can usually refinance online in just a few minutes.

We researched some of the top lenders to identify the best student loan refinancing companies for your needs. Here they are, as well as who each lender is best for.

In this article

• Best student loan refinancing options of October 2021
• Best student loan refinancing if you didn’t graduate: INvestEd
• Best student loan refinancing for parents: Laurel Road
• Best student loan refinancing for the lowest interest rates: Splash Financial
• Best student loan refinancing for married couples: PenFed
• Best student loan refinancing for borrower protections: RISLA
• Best no-fee student loan refinancing: MEFA
• Best student loan refinancing marketplaces: Credible and LendKey
• How to pick the best student loan refinancing company for you
• Methodology

Best student loan refinancing options of October 2021

Best student loan refinancing if you didn’t graduate: INvestEd

Most student loan refinancing lenders require you to have a bachelor’s degree or higher to qualify for a loan. If you didn’t graduate, you aren’t eligible for refinancing. INvestEd is one of the few exceptions that will work with borrowers who don’t have a degree.

INvestEd is a private lender. Although it gives private student loans only to those attending schools in Indiana, it offers student loan refinancing to borrowers nationwide. Borrowers may have up to 20 years to repay their loans and refinance up to $250,000. INvestEd offers both variable and fixed-rate loans.

The lender also has a generous forbearance policy. If you’re experiencing financial hardship, you can postpone your payments for up to three months at a time, for up to 24 months over the life of your loan.

Interest rates (as of June 11, 2021) Variable: 2.46% to 6.35%

Fixed: 3.47% to 6.82%

Loan amounts $5,000 to $250,000 Repayment terms 5, 10, 15, and 20 years

Best student loan refinancing for parents: Laurel Road

If you took out federal Parent PLUS Loans or private parent loans to pay for your child’s education, consider refinancing your debt through Laurel Road.

Not only does the lender offer competitive interest rates and multiple repayment terms, but it’s one of the only lenders that allows you to transfer parent student loans to your child. When you refinance into your child’s name, you’re no longer responsible for the loan, and you don’t have to make payments anymore.

With parent loan refinancing, you can have up to 20 years to repay your debt, and you can choose between a fixed-rate loan and a variable-rate loan. Laurel Road doesn’t charge loan application fees or origination fees, and there is no prepayment penalty.

Interest rates (as of June 11, 2021) Variable: 2.14% to 6.65%

Fixed: 2.75% to 6.25%

Loan amounts $5,000 and up Repayment terms 5, 7, 10, 15, and 20 years

Best student loan refinancing for the lowest interest rates: Splash Financial

If you’re looking for a low interest rate, Splash Financial has the lowest refinancing rates as of June 11, 2021. Splash Financial works with a network of banks and credit unions to offer low rates on refinancing loans.

There are also no application fees, origination fees, or prepayment penalties. Although there is a $5,000 loan minimum to refinance, there is no loan maximum, which makes Slash Financial a good option for those with a significant amount of student loan debt. At this time, eligibility for student loan refinancing with Splash Financial is limited to U.S. citizens and permanent residents.

Interest rates (as of June 11, 2021) Variable: Starting at 1.88%

Fixed: Starting at 2.49%

(lowest rates include .25% autopay discount)

Loan amounts $5,000 and up Repayment terms 5, 7, 8, 10, 12, 15, and 20 years

Best student loan refinancing for married couples: PenFed

If you’re married and both you and your spouse have student loans, PenFed Credit Union is the only lender that offers spouse loan refinancing. With this option, you can combine your loans and refinance them to have the same interest rate and a single monthly payment.

When you apply for spouse loan refinancing through PenFed, the lender looks at your household income and highest credit score, which increases your chances of qualifying for a loan and getting a competitive interest rate.

PenFed has a range of repayment terms to choose from. With spouse loan refinancing, you can have as long as 15 years to repay your loan, and you can opt for a fixed interest rate or a variable interest rate. There are no prepayment penalties, origination, or application fees.

Interest rates (as of June 11, 2021) Variable: 2.13% to 5.25%

Fixed: 2.89% to 5.63%

Loan amounts $7,500 to $300,000 Repayment Terms 5, 8, 12, and 15 years

Best student loan refinancing for borrower protections: RISLA

The Rhode Island Student Loan Authority is a nonprofit organization that offers student loan refinancing for borrowers in all 50 states. The lender offers competitive, fixed-rate loans, cosigner releases, and interest rate discounts.

But what makes RISLA stand out from other refinancing lenders is its unique borrower protections:

• Income-based repayment: If you can’t afford your monthly payments, RISLA offers income-based repayment. Similar to the federal repayment plan of the same name, RISLA’s income-based repayment plan is based on your income and family size. Depending on your situation, your monthly payment amount could be significantly reduced.
• Grad school deferment: If you go to graduate school, RISLA allows you to defer your student loan payments for up to 36 months.
• Total and permanent disability discharge: If you become totally and permanently disabled and cannot work, RISLA will discharge your remaining loan balance.

Interest rates (as of June 11, 2021) Fixed: 3.19 to 6.09%

(lowest rates include .25% autopay discount)

Loan amounts $7,500 to $250,000 Repayment terms 5, 10, and 15 years

Best no-fee student loan refinancing: MEFA

The Massachusetts Educational Financing Authority is a nonprofit, state-chartered student loan organization that offers private student loans and refinancing loans to borrowers nationwide.

As a nonprofit, MEFA tends to have lower rates and fees than some other lenders. For its refinancing loans, it charges no fees at all. There are no application fees, origination fees, late fees, or even returned check fees. If you decide to repay your loan early, there is no prepayment penalty, either.

You can choose between fixed- and variable-APR loans, and you have up to 15 years to repay your loan. You must have at least $10,000 in student loans to qualify for refinancing with MEFA, but there is no loan maximum.

Interest rates (as of June 11, 2021) Variable: Starting at 3.05% 

Fixed: Starting at 3.05%

Loan amounts $10,000 and up Repayment terms 7, 10, and 15 years

Best student loan refinancing marketplaces: Credible and LendKey

Credible

Before refinancing your loans, you should look at offers from multiple lenders to compare rates and terms. Although you can manually shop around on your own, it can be time-consuming. Using a student loan refinancing marketplace like Credible can simplify and streamline the process.

With Credible, you can get rate quotes from up to 12 lenders — more than other marketplaces offer — when you fill out one form. It does only a soft credit check so it doesn’t affect your credit score, and it’s completely free.

Credible gets a fee from its partner lenders when you take out a loan through the platform. However, the fee doesn’t affect your loan terms or how much you pay the refinancing lender.

Read our Credible review.