Refinancing your student loans can offer numerous advantages if you have student loan debt. It allows you to secure a lower interest rate, reduce your monthly payments, or opt for a more flexible repayment plan. Moreover, refinancing may enable you to release a cosigner, switch to a lender with better service, or consolidate multiple loans into a single payment.
1、Brazos
Texas residents with an annual income of at least $60,000 may qualify to refinance up to $149,000 of undergraduate debt or $249,000 in graduate student loans through Brazos. They offer both variable and fixed-rate loans. Borrowers can choose repayment terms spanning five, seven, 10, 15, or 20 years, and the economic hardship forbearance allows pausing payments for a total of up to 12 months if necessary.
Pros: Borrowers benefit from no origination or prepayment fees and the flexibility to choose between variable and fixed-rate loan options.
Cons: However, the high minimum annual income requirement poses a significant challenge for many borrowers. Additionally, this lender does not offer cosigner release, which is a drawback of refinancing with Brazos.
2、College Ave
College Ave extends loan refinancing options to U.S. citizens and permanent residents, excluding residents of Maine. They provide both fixed-rate and variable loan alternatives. Borrowers can select from repayment terms of five, seven, 10, 12, 15, or 20 years, with forbearance available in cases of financial hardship. The application process may commence with a soft credit check, and refinancing is feasible for undergraduate debt up to $149,000 or graduate debt up to $150,000.
Pros: Borrowing with College Ave offers major advantages, including the absence of prepayment or origination fees, the flexibility of variable or fixed rates, and the ability to initiate a loan application with only a soft credit check.
Cons: Regrettably, limitations encompass the exclusion of Maine residents and the lender’s non-disclosure of the minimum credit score required for approval.
3、EdvestinU
EdvestinU, a nonprofit organization affiliated with the New Hampshire Higher Education Assistance Foundation (NHHEAF) Network, offers competitive rates for student loan refinancing. Borrowers have the option to refinance both federal and private loans, with a choice between fixed and variable interest rates. The company, however, does not disclose its minimum required credit score. Loans can be refinanced for amounts up to $200,000, with repayment terms spanning from five to 20 years.
Pros: EdvestinU distinguishes itself by not mandating a degree for refinancing, allowing refinancing even while the borrower is still in school. Additional advantages encompass an Autopay discount of 0.25 percentage points and the availability of prequalification.
Cons: On the downside, refinancing is restricted to specific states. EdvestinU sets a higher minimum loan balance compared to some competitors, and there are limitations on the maximum balance. Moreover, the requirements for cosigner release are stringent.
4、ELFI
ELFI offers loans to U.S. citizens or permanent residents who have obtained a degree and hold a minimum of $15,000 in student loan debt. To qualify, borrowers must possess a credit score of at least 680 and can opt for either a variable or fixed-rate loan. Repayment terms vary from five to 20 years, providing flexibility, and forbearance can be utilized for up to 12 months in instances of financial difficulty.
Pros: Choosing ELFI comes with several advantages, including the flexibility to select between variable or fixed-rate loan options, absence of lender fees, the availability of forbearance during financial hardship, and potential referral bonuses.
Cons: However, drawbacks of this lender include the lack of discounts or opportunities for cosigner release.
5、MEFA
MEFA loans, offered by the Massachusetts Educational Financing Authority, extend their services to residents from all states. They provide variable and fixed-rate loan options, allowing borrowers to choose repayment terms spanning seven, 10, or 15 years. To qualify for refinancing with MEFA, borrowers must have a minimum of $10,000 in student loans and a credit score of at least 670. Unlike some lenders, MEFA does not impose a maximum loan limit, making it an attractive choice for those burdened with significant student debt.
Pros: Opting for MEFA presents several advantages, including opportunities for loan refinancing even for individuals without completed degrees, the flexibility to choose between variable or fixed-rate loan options, and the absence of origination and prepayment fees.
Cons: However, the notable downsides include the lack of any discounts, such as reduced APR for autopay, and restrictions on cosigner release, forbearance, or deferment options.
6、Nelnet Bank
Established in 2020 as the private student lending division of Nelnet, a longstanding federal student loan servicer, Nelnet Bank has made its mark in the industry. Although the lender does not disclose its minimum credit score, borrowers can refinance student debt ranging from $125,000 to $500,000, depending on their degree. Loan terms vary from five to 20 years.
Pros: Nelnet Bank stands out by offering substantial maximum loan amounts and the option to refinance parent PLUS loans into the student’s name. Additionally, prequalification is available for interested borrowers.
Cons: However, to be eligible for refinancing, graduation is a requirement, and the lender does not disclose specific credit and income criteria, potentially presenting a challenge for prospective borrowers.
7、RISLA
The Rhode Island Student Loan Authority (RISLA) extends its refinancing options to borrowers from any state, provided they meet specific eligibility criteria, such as having a minimum income of $40,000 and a minimum outstanding student loan balance of $7,500. Borrowers can refinance educational debt of up to $249,000, and repayment terms of five, 10, or 15 years are available.
Pros: RISLA offers a significant advantage with a relatively low minimum credit score requirement of 680, making it more accessible to a broader range of borrowers. Additionally, this lender allows for refinance loans even without a completed degree, and there are no prepayment or origination fees.
Cons: However, opting for this lender means that cosigner release is not an available option.