Mentioning Top 6 Best Student Loan Refinancing Companies

Dec 20, 2023 By Susan Kelly

Introduction

There is a crisis level of student debt in the United States. According to Experian, a U.S. citizen's average student loan debt is $38,792. It's easy to get out of hand with debt if your interest rate is sky-high. When it comes to managing your financial obligations, refinancing your student loans may be a wise choice. Suppose you engage with a private lender to consolidate your debt. You can negotiate a better interest rate, smaller monthly payments, or even a faster repayment schedule.

Best Student Loan Refinancing Companies

For people who need to refinance their student loans, we have compiled a list of the best companies for student loan refinancing based on various criteria, including interest rates, borrower availability, and hardship discharge alternatives.

LendKey Student Loan Marketplace

Similarly to Splash Financial, LendKey is not a direct lender but a marketplace where borrowers can shop for student loans. You may easily compare several loan programs' terms and interest rates on a student loan marketplace. Rate shopping in the market has no bearing on your credit score. You may receive more individualized attention from a LendKey partner than a Splash Financial partner, as LendKey works with credit unions and community banks.

TESLA

Borrowers can take advantage of RISLA's low rates and other perks, such as no application costs. When comparing refinancing options, the Rhode Island Student Loan Authority (RISLA) stands out due to its low-interest rates and numerous perks for borrowers. Despite the name, RISLA allows borrowers to refinance student loans for usage at higher education institutions across the country. Refinancing is available for amounts between $7,500 and $250,000.

Credible

The Massachusetts Educational Financing Authority (MEFA) and the Rhode Island Student Lending Authority are just two-state loan authorities participating in the Credible online marketplace for private student loans and student loan refinancing (RISLA). Loans for college students at all levels, from undergrads to grads to parents, are all available for refinancing in today's market. Credible is the best online marketplace for student loans since its prequalification feature lets borrowers compare interest rates from several lenders with just one application.

Splash Financial

Medical students can benefit from Splash Financial's inexpensive refinancing rates and flexible repayment plans because the company is an online marketplace that works with loan servicers to offer these services. In addition, it works with other financial institutions to consolidate and refinance existing student debt. You will know whom Splash Financial thinks is the most excellent fit once you complete a full application. However, it is a marketplace where you may compare offers from different banks and credit unions. Loans with a variable interest rate might have terms from five to twenty-five years (and five to 20 years for fixed-rate loans). There is no cap on how much you can borrow, but refinancing will set you back at least $5,000. The usual caveats apply.

Pentagon Federal Credit Union

Regarding refinancing student loans, Pentagon Federal Credit Union is the second-largest institution in the country. Purefy is the sole online lender offering PenFed's student loan programs. Borrowers (individuals, families, and joint borrowers) can refinance up to $300,000 in private or federal student loan debt at fixed or variable interest rates for repayment periods of five to fifteen years. PenFed allows married couples to apply for a loan jointly to refinance their existing student debt into a single lower-interest-rate loan.

If you want the most excellent rates, you should make the spouse with the higher education level your principal applicant. With PenFed's Couple Loan, only one of you requires a bachelor's degree or higher to qualify for refinancing, rather than both of you. Depending on the size of the loan and the presence or absence of a cosigner, the minimum yearly income requirement might be as high as $50,000. Discounted rates, a financial advising center, and special offers are benefits of joining PenFed.

SoFi

Career counseling and unemployment insurance are just two of the many perks available to SoFi members. No minimum loan amount is required to refinance with SoFi, and the minimum is only $5,000 (although the minimum may be greater in some regions). An associate's degree or above is typically required to qualify for a student loan. There is no published information on SoFi's minimum income or credit requirements. However, your application will be evaluated based on your financial background, credit score, and income levels. Borrowers can select from payback terms of 5, 7, 10, 15, or 20 years with no application or origination costs.

Conclusion

Saving money and getting your debt paid off faster by refinancing your student loans is a win-win situation. Since there is no "ideal" lender, borrowers should compare rates from several institutions before making a final decision. The best student loan refinancing companies are a great starting point. The best refinancing student loan companies have their unique advantages. There are both marketplaces where you may shop for the best deal, and lenders offer rates that can't be beaten. As a whole, we advise you to start with RISLA because of the flexible payment options and savings for automatic payments it provides.

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