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Banks, credit unions, online lenders, and state-affiliated nonprofits may offer student loan refinancing products. These products can allow you to consolidate your federal and private student debt into a private education refi loan. The best refi loan may give you a lower monthly payment and lower interest rate.You may compare student loan refinance rates to help determine whether student loan refinancing is right for you. Our ultimate list of student loan refinance companies is composed of seven fintechs, seven banks, two credit unions, and nine state-affiliated nonprofits. Below we uncover the history of student loan refinancing and highlight 25 student loan refi companies.
History of Student Loan Refinancing
Modern-day student loan refinancing allows borrowers to combine their federal and private student debt into a single private education loan. This is something that didn’t occur until SoFi introduced the concept in May 2012.How student loan refinancing works is that borrowers submit an application with a private lender requesting a new loan agreement for refinancing student loan debt. Refinancing student debt can allow borrowers to replace their existing education loans with the terms and conditions of a private loan agreement.You can refinance a portion of your student loans if you qualify for student loan refinancing. SoFi introduced modern-day student loan refinancing in 2012, but the concept of consolidating and refinancing federal or private education loans has existed for decades.Federal student loan refinancing before 2012, however, did not necessarily reduce your finance charges if it increased your repayment period or included interest capitalization. The refinancing model that SoFi created in 2012 allowed federal student loan borrowers to consolidate and refinance at a potentially lower rate of interest. Student loan refinancing may be right for you if you can lock in a lower interest rate.Recommended: Should I Refinance My Student Loans
How Did Student Loan Refinancing Work Before 2012?
Borrowers before 2012 could consolidate federal student loans into a Federal Consolidation Loan and private student loans into a single private education loan. The federal government, before 2012, historically relied upon private lenders to participate in federal student loan programs.Starting in the 1960s, the federal government encouraged states and private nonprofit agencies to guarantee student loans. Then the federal government became a direct lender in the 1990s when it created the William D. Ford Federal Direct Student Loan Program. Federal student loan borrowers for decades had the ability to refinance and consolidate federal student loans. Borrowers under the former Federal Family Education Loan program, for example, could consolidate their federal Stafford Loans and Perkins Loans into a Federal Consolidation Loan or Direct Consolidation Loan. Borrowers also had the ability to refinance their former Federal Supplemental Loans for Students or Federal SLS debt before 2012.Federal Consolidation Loans historically add outstanding unpaid interest to your principal loan balance and then charge additional interest on the larger principal balance. Most instances of federal student loan interest capitalization will be eliminated under a new rule that goes into effect in July 2023.
How Fintech Companies Disrupted Student Loan Refinancing
Fintech companies disrupted student loan refinancing following the U.S. financial crisis of 2008. At a time when commercial banks faced heavy scrutiny, financial technology companies began offering fintech-powered student refinance loans while some elected officials encouraged such innovation.As mentioned earlier, SoFi introduced a refinancing model in 2012 that allowed private and federal student loan borrowers to consolidate and refinance at a potentially lower rate of interest. Fintechs during the 2010s experienced fast growth and increased their market share in consumer lending.Fintech lending of private student loans and student loan refinancing grew from about $3.4 billion in 2015 to $7.8 billion in 2017, according to a federal analysis. SLM Corporation, a private student loan provider also known as Sallie Mae, in its 2021 annual report specifically cites fintech student loan refinancing as a risk factor for its business. Student loan consolidations and refinancings contribute to increased prepayment rates and, therefore, “could have a material adverse effect on our business,” SLM reported.You can minimize your interest costs by paying off student loans early. There’s no prepayment penalty for paying off federal or private student loans early.Recommended: How to Lower Your Student Loan Interest Rate
Choosing a Student Loan Refinance Company
There are more than two dozen student loan refinance companies that have actual experience with refinancing federal student loans and private student loans. Some of these companies offer fixed-rate and variable-rate student refi loans.A fixed-rate loan has an annual percentage rate or APR that remains the same throughout the life of the loan, while the interest rate on a variable-rate loan may fluctuate from time to time. You may want to consider all of these factors when choosing a student loan refinance company.Below we highlight 25 student loan refinance companies across the following sectors:
Seven fintech companies
Seven banks
Two credit unions
Nine state-based nonprofits
Student Loan Refinance Companies – Fintechs
Below we highlight seven fintechs operating in the student loan refinance space:
LendKey Technologies Inc.
Founded in 2009, LendKey Technologies Inc. is a fintech company that promotes student loan refinancing at a smaller scale than some of its rivals. The firm has deployed more than $5 billion in lending capital and serviced more than $2.3 billion in loans on behalf of community banks and credit unions to date.Formerly known as Fynanz before rebranding as LendKey, the company introduced a consolidation program for private student loans in 2011. LendKey later embraced modern-day student loan refinancing after SoFi pioneered the concept of combining federal and private student loans into a single private education loan.Here’s some info on student loan refinance products powered by LendKey:
Banks and credit unions issue LendKey-powered loans that may exceed 10% APR as of November 2022, and LendKey services those loans as a nonbank fintech
Fixed rates start at 3.99% and may go up from there as of November 2022
Variable rates start at 2.81% and may go up from there as of November 2022
Repayment terms range from five years to 20 years
Borrowers may refinance up to $250K depending on the loan issuer’s terms
The minimum refinance amount is $5,000
SoFi
SoFi introduced student loan refinancing in May 2012, becoming the first company to refinance federal and private student loans. To date, SoFi has refinanced more than $30 billion of student loan debt.Here’s some info on SoFi’s student loan refinance products:
Fixed rates range from 3.99% to 8.94% with autopay discount as of November 2022
Variable rates also range from 3.99% to 8.94% with autopay discount as of November 2022
Repayment terms range from five years to 20 years
Borrowers may refinance the full balance of their qualified education loans
The minimum refinance amount is $5,000
Earnest and NaviRefi (Navient Corporation)
In 2013, a fintech company called Earnest entered the student loan refinancing business. Navient Corporation later acquired Earnest in 2017. More than $18 billion in student loans have been refinanced under the Earnest and NaviRefi brands to date.Here’s some info on Earnest student loan refinance products:
Fixed rates range from 3.99% to 8.99% with autopay as of November 2022
Variable rates range from 3.24% to 7.99% with autopay as of November 2022
Repayment terms range from five years to 20 years
Borrowers may refinance up to $500K of student debt
The minimum refinance amount is $5,000
Splash Financial
Founded in 2013, Splash Financial is a fintech company that has realized more than $6 billion in student loan refinancing requests to date.Here’s some info on student loan refinance products offered through the Splash Financial lending platform:
Fixed rates range from 3.99% to 8.49% as of November 2022
Variable rates range from 2.50% to 8.65% with autopay as of November 2022
Repayment terms range from five years to 20 years
Borrowers may refinance the full balance of their student loan debt with certain lenders through the Splash Financial platform
The minimum refinance amount is $5,000
College Ave Student Loans
Founded in 2014, College Ave Student Loans originates and services more than $1 billion in student loans annually, including refinanced student loans.Here’s some info on student loan refinance products from College Ave:
Fixed rates range from 4.49% to 7.99% with autopay as of November 2022
Variable rates range from 3.69% to 7.99% with autopay as of November 2022
Repayment terms range from five years to 15 years
Borrowers with medical, dental, pharmacy, or veterinary doctorate degrees may refinance up to $300K
Borrowers with other undergraduate or graduate degrees may refinance up to $150K
The minimum refinance amount is $5,000
Yrefy LLC
Since 2018, private lender Yrefy LLC has refinanced private student loans for borrowers who have defaulted on their private student loans.Here’s some info on Yrefy’s student loan refinance products:
Fixed rates range from 1% to 7%
Repayment terms range from three years to 15 years
Borrowers may refinance over $250K of defaulted private student debt
The minimum refinance amount is $5,000
Impact Capital Funds Inc. (ICF)
Founded in 2020, ICF is a social impact investment company that promotes student loan refinancing.Here’s some info on ICF student loan refinance products:
Fixed rates range from 3.65% to 6.15% with 0.25% autopay discount as of August 2022
Repayment terms range from three years to seven years
Borrowers may refinance up to $200K of student debt
The minimum refinance amount is $20,000
Student Loan Refinance Companies – Banks
Below we highlight seven regulated banks that serve as student loan refinance companies:
Citizens Bank
Citizens Bank offers student loan refinancing as a federally regulated national bank. Here’s some info on the student loan refinance products offered by Citizens:
Fixed rates range from 5.39% to 11.88% as of November 2022
Variable rates range from 5.09% to 11.67% as of November 2022
Repayment terms range from five years to 20 years
Borrowers with a bachelor’s degree or below may refinance up to $300K
Borrowers with more advanced degrees may refinance up to $500K or $750K
The minimum refinance amount is $10,000
Discover Financial Services (Discover Bank)
Discover offers student loan refinancing as a state-chartered bank regulated by the Federal Deposit Insurance Corporation (FDIC) and Office of the Delaware State Bank Commissioner. Here’s some info on the student loan refinance products offered by Discover:
Fixed rates range from 4.99% to 9.49% as of November 2022
Variable rates range from 5.49% to 9.49% as of November 2022
Repayment terms can be 10 years or 20 years
Borrowers may refinance up to $150K (higher limits may apply for specific fields of study)
The minimum refinance amount is $5,000
Education Loan Finance aka ELFI (SouthEast Bank)
SouthEast Bank, a Tennessee state-chartered bank, offers student loan refinancing through its Education Loan Finance or ELFI division. Here’s some info on the student loan refinance products offered by ELFI:
Fixed rates range from 4.29% to 7.29% as of October 2022
Variable rates range from 2.48% to 7.98% as of October 2022
Repayment terms range from five years to 20 years
Maximum refi loan amounts may vary based on eligibility
The minimum refinance amount is $10,000
Laurel Road (KeyBank)
KeyBank National Association, a national bank, became a major player in the student loan refinancing business in April 2019 upon acquiring Laurel Road’s digital lending business from Laurel Road Bank. Here’s some info on the student loan refinance products offered by KeyBank’s Laurel Road brand:
Fixed rates range from 4.24% to 6.65% with customer discounts as of October 2022
Variable rates range from 2.25% to 6.55% with customer discounts as of October 2022
Repayment terms range from five years to 20 years
Borrowers with a bachelor’s degree or higher may refinance the full balance of their qualified education loans
Eligible borrowers with an associate degree may refinance up to $50K
The minimum refinance amount is $5,000
Nelnet Bank
Nelnet Bank offers student loan refinancing as an internet industrial bank chartered by the Utah Department of Financial Institutions. Here’s some info on the student loan refinance products offered by Nelnet:
Fixed rates range from 4.49% (with auto debit discount) to 9.44% (without auto debit discount) as of November 2022
Variable rates range from 5.92% (with auto debit discount) to 12.58% (without auto debit discount) as of November 2022
Repayment terms range from five years to 25 years
Borrowers with an undergraduate degree may refinance up to $125K
Borrowers with a graduate or doctorate degree may refinance up to $175K
Borrowers with an MBA degree or law school degree may refinance up to $175K
Borrowers with an associate degree may refinance up to $75K
Borrowers with an undergraduate degree may refinance up to $175K
Borrowers with a graduate degree may refinance up to $200K
The minimum refinance amount is $10,000
Panacea Financial (Primis Bank)
Primis Bank, the state-chartered bank headquartered in Virginia, launched its Panacea Financial division in November 2020 to launch a student loan refinance program for doctors and dentists in training.Here’s some info on Panacea Financial student loan refinance products:
Fixed rates range from 5.25% to 6.99% on student refinance loans for practicing doctors and dentists as of September 2022
Fixed rates range from 6.25% and 7.25% on student refinance loans for doctors in training as of September 2022
Repayment terms range from five years to 15 years depending on loan type
Borrowers may refinance the full balance of their qualified education loans
The minimum refinance amount is $15,000
Student Loan Refinance Companies – Credit Unions
Below we highlight two credit unions that offer education refi loans:
HPC Credit Union
HPC, a federally insured state-chartered credit union based in Michigan, offers student loan refinancing on a small scale. Here’s some info on HPC’s student loan refinancing:
Rates are fixed at 3.75%
Repayment term is 84 months (seven years)
Members of the credit union may refinance up to $20K in student loan debt
There’s no designated minimum amount you may refinance
Pentagon Federal Credit Union (PenFed)
PenFed, a federal credit union also known as Pentagon, offers student loan refinancing. Here’s some info on PenFed’s student loan refinancing products:
Fixed rates range from 7.74% to 9.93%
Repayment terms range from five years to 15 years
Borrowers may refinance up to $300K
The minimum refinance amount is $7,500
Student Loan Refinance Companies – Nonprofits and State-Affiliated Lenders
Below we highlight nine state-based nonprofit lenders that offer student loan refinancing:
Brazos Managed Companies
Brazos Higher Education Service Corporation Inc., a Texas-based nonprofit, promotes student loan refinancing as the manager of organizations like Brazos Education Lending Corp.Here’s some info on the Brazos education loan refinancing products available to eligible Texas residents:
Fixed rates range from 3.85% to 5.75% with autopay as of November 2022
Variable rates range from 5.43% to 8.35% with autopay as of November 2022
Repayment terms range from five years to 20 years
Borrowers with a bachelor’s degrees may refinance up to $150K
Borrowers with more advanced degrees may refinance up to $400K
The minimum refinance amount is $10,000
Indiana Secondary Market for Education Loans Inc. (INvestEd)
The Indiana Secondary Market for Education Loans Inc., doing business as INvestEd, is an Indiana-based nonprofit that promotes student loan refinancing.Here’s some info on INvestEd refinance loan products:
Fixed rates range from 5.18% to 8.36% as of November 2022
Variable rates range from 5.12% to 9.01% as of November 2022
The Iowa Student Loan Liquidity Corporation® is a nonprofit that promotes student loan refinancing under the name ISL Education Lending.Here’s some info on ISL refinance loan products:
Fixed rates for the standard Reset Refinance Loan range from 3.94% to 9.08% with autopay as of November 2022
Fixed rates for the Medical Resident Refinance loan range from 4.10% to 8.21% with autopay as of November 2022
Fixed rates for the Medical and Dental Professional Refinance loan range from 3.64% to 8.28% with autopay as of November 2022
Fixed rates for the In-School Refinance loan range from 5.60% to 7.64% with autopay as of November 2022
Repayment terms range from five years to 20 years depending on refi loan type
Borrowers may refinance up to $300K or $400K depending on refi loan type
The Kentucky Higher Education Student Loan Corporation is a state-affiliated nonprofit that promotes student loan refinancing.Here’s some info on KHESLC’s Advantage Refinance Loan product:
Fixed rates range from 2.94% to 6.24% with autopay effective December 2021
Repayment terms range from 10 years to 20 years
Eligible borrowers may refinance the full balance of their qualified education loans
The Massachusetts Educational Financing Authority is a state-based nonprofit that offers student loan refinancing. Here’s some info on MEFA education refinancing loan products:
Fixed rates range from 4.50% to 7.20% as of November 2022
Repayment terms can be seven years, 10 years, or 15 years
Borrowers may refinance the full balance of their qualified education loans
The minimum refinance amount is $10,000
New Hampshire Higher Education Loan Corporation (EDvestinU®)
The New Hampshire Higher Education Loan Corporation is a nonprofit corporation that promotes student loan refinancing under its EDvestinU trademark.Here’s some info on the EDvestinU refinance loan products:
Fixed rates range from 5.91% to 9.53% as of November 2022
Variable rates range from 6.46% to 8.21% as of November 2022
Repayment terms range from five years to 20 years
Borrowers may refinance up to $200K
The minimum refinance amount is $7,500
New Mexico Educational Assistance Foundation (NMEAF)
The New Mexico Educational Assistance Foundation offers student loan refinancing as a state-based nonprofit established by the New Mexico State Legislature in 1981. Here’s some info on NMEAF’s student loan refinancing products for New Mexico residents:
Fixed rates range from 3.65% to 4.40% as of November 2022
PHEAA, a nonprofit public corporation and government instrumentality created by the Pennsylvania General Assembly in 1963, offers student loan refinancing to eligible borrowers.Here’s some info on the PA Forward Refinance Loan launched by PHEAA in December 2019:
Fixed rates range from 2.48% to 6.36% as of November 2022
Repayment terms range from five years to 20 years.
Borrowers may refinance up to $300K
The minimum refinance amount is $5,000
Rhode Island Student Loan Authority (RISLA)
RISLA is a nonprofit quasi-state authority that promotes student loan refinancing. Here’s some info on RISLA’s student loan refinancing products:
Fixed rates for the immediate repayment plan range from 5.29% to 7.74% with autopay for eligible borrowers as of November 2022
Fixed rates for the deferred repayment plan range from 7.39% to 7.70% with autopay for eligible borrowers as of November 2022
Repayment terms range from five years to 15 years
Borrowers may refinance up to $250K depending on degree
The minimum refinance amount is $7,500
How to Know When Student Loan Refinancing Is Worth It
Refinancing federal student loans may be right for you if you can lock in a lower interest rate, but there are some pros and cons of student loan refinancing to consider:
The portion of your federal student debt that you refinance loses its eligibility for federal student loan forgiveness programs and income-driven repayment plans.
Your personal circumstances may dictate whether student loan refinancing is right for you. You can compare student loan refinance rates from the best student loan refinancing companies and explore your options. Private student loan refinance rates can have fixed or variable rates of interest.Student loan refinance companies may offer refi loan products that provide you with a lower monthly payment. If you have tens of thousands of dollars in student debt and don’t qualify for student loan forgiveness, refinancing might be worthwhile for you to consider.
The Takeaway
Student loan refinancing is dominated by a few companies that compete for your business. Borrowers refinanced about $18 billion in student debt in 2021, a small share of the overall student loan debt pie. The U.S. Department of Education owns or guarantees more than $1.6 trillion in federal student debt, while private entities hold an estimated $128 billion in private student debt.If you’re interested in student loan refinancing, Lantern by SoFi can help. Refinancing might be right for you if you can lock in a lower interest rate. Find and compare student loan refinance options with Lantern.
Frequently Asked Questions
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How much student debt can you refinance?
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Photo credit: iStock/AdamGregor
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About the Author
Sulaiman Abdur-Rahman
Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
