Best Student Loan Refinancing Companies 2023

Summer can be a great time of year to review your finances, especially if you’re trying to sort out student loans before the 2023 semester begins. At which time federal student loan repayments are temporary Expected to resume.

If you’re not comfortable with your current student loan situation – for example, because of height interest rate Or because you want to consolidate a mix Federal and private loans – You can benefit from personal Student loan refinancing.

But not all student loan refinancing lenders offer the same terms. If you want to get the best student loan refinancing, the choice may vary based on your situation.

Check out your student loan refinancing options online now.

Best Student Loan Refinancing Companies 2023

Based on our extensive analysis, our picks for the best student loan refinancing companies are:

Best for low rates: earnest

If you’re looking for a low rate when refinancing your student loans, Earnest is a great place to start.

Beginning July 2023, Earnest offers student loan refinancing at a fixed rate of 4.96% annual percentage rate (APR) or 5.32% APR with autopay discount.

That said, student loan interest rates can vary based on your situation, and they can change over time. So, it’s best to compare providers and see what the lowest rates are based on your situation.

Best for Parents: PenFed Credit Union

Helping your kids pay for their education can be a great gift, but sometimes parents need to refinance, too.

While you should still compare rates for different providers, one benefit of refinancing with PenFed Credit Union is that parents with Parent PLUS loans can transfer this loan to their children. This can be helpful in certain situations.

For example, if you’ve agreed to help your children pay for college for a few years, but now they’re more established in their careers and have money to pay off student loans, debt transfer may be best for your family.

Best for those with good credit: Laurel Road

If you have one Good credit score and a solid personal finance track record, the best student loan refinancing lender for your situation may be Laurel Road.

This student loan refinancing lender offers competitive rates, especially if you refinance while opening a Laurel Road Linked Checking Account and setting up direct deposit. Doing so can get you an APR starting at 4.47% starting July 2023 when factoring in the auto-pay discount.

In addition to good credit to help you qualify for a lower refi rate, a high score can also indicate experience managing multiple financial accounts. For example, you can achieve a good credit score by effectively managing multiple credit cards and car loans, including your student loans. If this is the case, you may feel comfortable adding this checking account to get a better student loan refinancing rate.

How Much Can You Save With Refinancing? Learn more here.

Best for those with bad credit: MPOWER Financing

If you have bad credit, it can be difficult to qualify for student loan refinancing, especially with competitive interest rates. A possible solution is to refinance through MPOWER financing.

This lender is often used by international students, but you do not have to be from outside the US to use it. MPOWER does not require a credit score or credit history to qualify for refinancing.

While your credit may still play a role in this company’s refinancing decision, the company also considers your future prospects, which may help you qualify.

Best for flexible payment options: SoFi

If you want flexibility in paying off your student loans, SoFi may be a good choice. When refinancing student loans with this lender, you can choose from a variety of payment options. These include five-, seven-, 10-, 15- and 20-year loan terms, offered as either fixed- or variable-rate loans.

SoFi has no prepayment fees, and there are possible loan deferment or forbearance options if you’re experiencing financial hardship.

Bottom line

These are some of the best student loan refinancing companies to consider, but take your time to research and compare providers before moving forward with one.

In some cases — such as if you have federal student loans with competitive interest rates — refinancing your student loans may not be the best financial decision. Also, if you refinance from a federal to a private student loan, you may lose some of the federal loan’s potential benefits, such as the Teacher Loan Forgiveness Program.

That said, if you’re paying high interest rates now or have other challenges with your student loans, refinancing with these or other private lenders could save you money in the long run. Shop around and consider talking to a trusted advisor to help you weigh your options.