Best Student Loan Refinance Companies of June 2025

Refinancing your student loans can help some borrowers pay off their debt quicker and save money in the long run. And it may be a good time to pursue the strategy: After the Federal Reserve started cutting its benchmark interest rate last year, student loan refinance rates gradually ticked down, though they are still not as low as they were a few years ago.

What to know about student loan refinance

• When you refinance, you replace your existing student loan(s) with a new loan that has either a lower interest rate, a lower monthly payment or, ideally, both.
• When you refinance federal loans, you turn them into private loans and you lose access to exclusive benefits and repayment terms. Although there is a lot of uncertainty regarding federal student loans and possible changes to repayment plans, borrowers with only federal debt should not make any knee-jerk decisions to refinance.
• See industry insights and a comprehensive guide on when to refinance student loans here.

How we picked our winners

Our edit team has been covering student loans (and student loan refinance) for the better part of a decade. Our writers and editors independently analyzed and vetted student loan refinance products, focusing on eligibility, perks, interest rates and fees, to determine which lenders stand out. (See our methodology here.)

If you're looking for more information on in-school loans to pay for college, see our picks for best student loans.

Our top picks for the best student loan refinance companies of June 2025

The following companies are listed in alphabetical order.

• Earnest - Best Overall
• ELFI - Best for Parents
• Laurel Road - Best for Healthcare and Medical professionals
• Lendkey - Best for Offers from Community Banks and Credit Unions
• SoFi® – Best for Member Perks
• RISLA – Best for Borrower Protections

Earnest is our top overall pick thanks in large part to its Precision Pricing tool, which is unique among lenders. Earnest allows borrowers to pick the monthly payment that fits their budget, and sets the repayment term based on that amount — even if it results in an uncommon number like 7.5 years. The result is more than 180 ways to customize your loan, the lender says. The repayment flexibilities don't stop there, either. Earnest also allows borrowers to skip one payment every 12 months.

Earnest doesn't charge late fees and consistently offers low starting interest rates. In addition to the standard salary and credit score, Earnest considers additional details like how much you have in savings to help determine your eligibility. And it is transparent about what it offers for borrowers struggling to make their payments: You can make interest-only payments for up to 24 months over the life of the loan or request a financial hardship forbearance for up to 12 months.

Read full Earnest student loan refinance review>>

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Most lenders allow parents to refinance federal parent PLUS loans, but many require parents to stay on as the primary borrower. ELFI doesn't; parents can refinance a PLUS loan in their name or refinance as a way to transfer the loan to their student (assuming the student meets the lender's credit eligibility). ELFI only offers two repayment terms for parents (compared to five for student borrowers who are refinancing), but we still chose them for parents as other lenders also limit the number of terms available to for parent refinance loans. ELFI's starting APR is slightly higher than some winners on our list, but it also has a lower maximum interest rate than most lenders.

ELFI sets up all customers with a one-on-one session with a student loan advisor, and the company has a 4.9 rating (out of 5 stars) on Trust Pilot — the highest of any lender Money looked at.

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Rates current as of June 3, 2025, rates subject to change. Terms and Conditions apply. All products are subject to credit approval. Please see all Laurel Road disclaimers here.

Laurel Road is an online lender specializing in student loan refinancing for healthcare professions, including doctors, dentists, physical therapists and nurses. It partners with several professional organizations to offer rate discounts to these (and other) healthcare professionals. Plus, it has a program for individuals participating in a medical residency program that allows you to refinance your loans and pay just $100 per month for up to four years during your residency or fellowship. Many lenders don't offer any refinancing for associate degrees. Laurel Road does, though degrees from only about a dozen health-related fields are eligible. Laurel Road also allows students to take over their parents' PLUS loans via refinancing.

See full Laurel Road student loan refinance review>>

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LendKey is a platform that connects you with a network of smaller banks and credit unions. LendKey isn't a direct lender, but we chose to include it in our list as it can help you quickly expand your search for a solid refinance offer and it offers access to a group of lenders many borrowers wouldn't find on their own. Plus, while a separate financial institution finances the loan (and determines eligibility), LendKey services the loan, so borrowers deal directly with the company through repayment.

LendKey has a quick, easy online application and competitive interest rates. But you will have to use the check rates tool (it's a soft inquiry, so it won't hurt your credit) to see which of LendKey's partners you're eligible for — and even then, LendKey simply presents you with the available terms and interest rates. You cannot browse offers from various lenders.

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RISLA stands out from other lenders because of its borrower protection programs, including an income-based repayment option. Under this program, monthly payments will never exceed 15% of the borrower and cosigner’s discretionary income. And if there is still a loan balance after 25 years on the repayment plan, RISLA will forgive the remainder. There's also an economic hardship forbearance to help borrowers experiencing financial hardship, unemployment or disability manage their debt.

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SoFi® was the first company to offer refinancing for federal and private students back in 2012, and it remains a top lender in the space today. It stands out for its variety of membership perks. Anyone with a SoFi product (banking and investment services, personal loans, mortgage loans, credit and student loans) gets access to financial coaching, estate planning, discounts, networking events and more.

SoFi's SmartStart loan option allows borrowers to ease into repayment on their refinanced loan, with nine months of lower payments before full principal and interest payments are due.

Read full SoFi student loan refinance review>>

Other Companies We Considered

The companies reviewed below offer competitive student loan refinance interest rates and loan terms that may suit many borrowers. Readers will find short reviews that outline each lender's pros and cons, as well as a highlights table listing loan terms and eligibility requirements. Finally, we explain why the company didn’t make it into our top picks.

MPower Financing

MPower Financing is a great options for borrowers who are not U.S. citizens or permanent residents, as the public benefit corporation that specializes in financing higher education for international students. MPOWER will allow borrowers to refinance loans originated in several countries, including Australia, Austria, Brazil, the Dominican Republic, Germany, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Switzerland, Spain, the U.K. and the U.S.

Read full MPower student loan refinance review>>

Citizens Bank

Citizens Bank has strict eligibility requirements. Borrowers need good to excellent credit to qualify, and the refinanced loan minimum is $10,000 — higher than other lenders require. Citizens Bank does have forbearance programs, but the lender says decisions are made on a case-by-case basis rather than having set requirements or durations.

For more information, check out our full review of Citizens Bank's refinancing options.

What to to know before refinancing your student debt

Students and parents may be able to save money by refinancing, especially during periods of low interest rates. But refinancing isn’t a smart move for every borrower, so before taking that step, consider the implications of refinancing and if the outcome will be beneficial to your particular financial situation. For example, federal borrowers may score a lower interest rate but lose financial protections that could be crucial down the road.

How does refinancing student loans work?

When you refinance your student loan you are replacing your current loan with a new loan and new terms from a private lender. Generally, borrowers refinance student loans to extend their repayment period (and therefore lower monthly payments), obtain a lower interest rate so they’ll pay less over the life of the loan or consolidate multiple student loans into one single payment. Some loan borrowers may find terms that achieve all three at once.

You can only refinance student loans through a private lender, not the federal government. Experts caution people with federal loans to think very carefully about their situation before refinancing, because they’ll be giving up federal benefits that come with government loans such as student loan forgiveness programs and income-driven repayment plans. If your student loan is from a private lender, there's little downside to looking for better terms. You can refinance private student loans with your current lender or choose a different lender.

Student loan refinancing vs. Student loan consolidation

One of the benefits of refinancing through a private student loan lender is that borrowers can consolidate multiple loans into one and have a single monthly payment under one servicer. But this benefit is not limited to private lenders. Students with eligible federal loans can consolidate their debt with a Direct Consolidation Loan, though there are pros and cons with that process as well.

Should you refinance your student loans?

Refinancing your debt — whether federal or private student loans — may save you money if you have high interest rates and a large monthly payment. However, it’s not always the best financial move, especially for borrowers with federal loans.

Refinancing a federal loan means converting it to a private lender. You'll lose valuable benefits and protections, such as income-based loan repayment plans, Public Service Loan Forgiveness and interest subsidies. And, the process cannot be reversed. For many federal borrowers, enrolling in an income-driven repayment plan will be a better option, as those plans can reduce your monthly payment and offer loan forgiveness on any balance left over after a certain number of years.

If you have a private student loan, there’s no real downside to refinancing to get better terms. But you will need a good credit score and stable income (or a creditworthy cosigner) to qualify for refinancing. When weighing whether it makes sense for you, remember that lenders’ lowest rates are reserved for borrowers with the strongest credit.

What to consider when refinancing a student loan

Before refinancing your loans, consider the following:

Federal student loans

With federal student loans, refinancing can help you secure a lower interest rate and possibly reduce your monthly payment. But federal loan refinancing can be risky because your federal loans will be transferred to a private lender. As a result, you’ll no longer be eligible for borrower protections like federal income-driven repayment, Public Service Loan Forgiveness or Total and Permanent Disability Discharge.

Private student loans

When you refinance, the loans are switched to a new loan servicer. Private loan rates, policies and customer service varies by lender, so be careful about refinancing your loans.

Steps to refinance your student loans

Refinancing student loans can be an excellent way to save money or accelerate your repayment, and it's easier to do than you may think:

1. Check your credit

Student loan refinance lenders generally require borrowers to have good to excellent credit, meaning a score of 670 or higher, and to get the best student loan refinancing rates, you’ll need an even better score. Check your credit to see where you stand. If your credit is less-than-perfect or you have a high debt-to-income ratio, you may not even qualify for a loan unless you add a cosigner to your application.

Not all refinancing companies offer cosigner releases, so review the lender’s loan terms to see if a cosigner release is possible.

2. Consider the types of loans you have

If you have a mix of federal and private loans, remember that you don’t have to refinance all of your debt. Although you can refinance private student loans and federal loans, you can opt to only refinance your private loans or your loans with the highest rates.

3. Shop for the best rate

Each lender has its own credit and income requirements, so you may qualify for better rates with some lenders over others. Shop around and request quotes from multiple companies to find the best deal. Many lenders have tools that allow you to view prequalified rates without affecting your credit score, and using a marketplace like Credible or Splash Financial can help you get several quotes at once.

Rates range based on your credit and loan term; the lowest rates are usually for the shorter repayment periods, such as five or seven years.

4. Research lender’s financial hardship relief options

Not all refinancing lenders offer financial relief programs if you lose your job or become ill. And not all lenders will discharge your loans in cases of death or permanent disability. Carefully review the lender’s forbearance, deferment and forgiveness policies so you know under what circumstances the lender will pause or forgive your loans.

5. Fill out your loan application

Student loan refinancing companies allow you to apply online. You’ll need to provide your current loan statements, student loan account numbers and employment information. You’ll also need to consent to a hard credit inquiry.

6. Sign your loan approval and start making monthly payments

Once you’re approved, the lender will send you a loan agreement to review and sign. After that, the lender will work with your current loan servicers to pay off your student loans. Continue making your usual monthly payments until you receive confirmation that your loans have been paid in full; otherwise, you risk late payment fees and damage to your credit report.

How to refinance student loans with bad credit

If you have poor credit or no credit history, you will need a cosigner with a high credit score and steady source of income to qualify for a loan. (Most lenders require a minimum credit score around 650, but your cosigner will need a very good or excellent score to qualify for the best rates) Some lenders will allow you to apply for a cosigner release if you meet its requirements and make a specific number of payments on time, but not all lenders offer that option.

If you don’t have a cosigner to apply with, you’ll have to improve your credit before applying to refinance.

Best student loan refinance methodology: How we picked our winners

We evaluated lenders on more than 20 factors, focusing on eligibility, costs, loan terms and borrower protections. Here's a breakdown:

Variety of loans eligible

In addition to the standard bachelor's and graduate degree offerings, we prioritized refinance companies that accepted parent loans, debt from associate degrees and loans from students who are still enrolled.

Flexible repayment options

We compared the variety of repayment term lengths, favoring lenders with four or more term options. Since the length of your term influences your interest rate and monthly payment, multiple repayment options is critical to helping borrowers get the right fit. We also considered whether lenders offered cosigner releases and how long a borrower had to wait before applying.

Competitive interest rates, low fees and reputation

We focused lenders that balanced low starting rates for the most credit-worthy borrowers with still reasonable rates for borrowers with fair credit. In this case, we primarily looked for lenders with rates starting around 4% and maxing out below 10%, though we did make some exceptions. Most refinance companies do not charge origination or application fees, but we awarded extra points to lenders that also eliminated late or insufficient fund fees. Finally, we reviewed customer review sites including the Better Business Bureau and Trust Pilot to see which companies are known for good service.

We favored companies with flexible payback policies, such as cosigner release and financial hardship relief options for qualified applicants. We also looked for financial institutions that offered refinance loans without charging origination fees or late fees.

Borrower protections

One of the biggest downsides to refinancing federal student loans is that you lose access to extensive forbearance and deferment options, and so its critical for borrowers to research what their options would be should they struggle with payments in the future. These policies vary from lender to lender. We favored lenders with transparent forbearance policies on their websites and options to defer payments for up to a year, at a minimum.

Summary of Money’s Best Student Loan Refinance Companies of June 2025

• Earnest - Best Overall
• ELFI - Best for Parents
• Laurel Road - Best for Healthcare and Medical professionals
• Lendkey - Best for Offers from Community Banks and Credit Unions
• SoFi® – Best for Member Perks
• RISLA – Best for Borrower Protections