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Key Takeaways

Earnest claims the best overall title with its flexible repayment options; you can choose your monthly bill amount and create a term around it. Other top companies include SoFi and RISLA.
Borrowers with federal undergraduate loans will have a hard time beating their interest rate on the private market. But federal graduate loans, federal parent loans and private loans carry higher interest rates and offer a better shot at savings.
When you refinance federal loans, you lose access to certain repayment terms and benefits, including potential forgiveness. Although there is a lot of anxiety regarding changes to the federal loan system, borrowers with federal debt should not make any knee-jerk decisions to refinance.
Methodology: Our team has been covering student loans for more than a decade. We independently analyzed and vetted student loan refinance products, focusing on eligibility, perks, interest rates and fees, to determine which lenders stand out.

Refinancing student loans can help some borrowers pay off debt faster or lower their monthly bills to free up cash for other priorities. The move doesn’t make sense for everyone, but it can be a smart strategy for some — particularly if your credit score and financial profile have improved since you took out your loans.
If you’re looking for more information on in-school loans to pay for college, see our picks for best student loans.
Our picks for the top student loan refinance companies
The following companies are listed in alphabetical order.

Earnest – Best Overall
ELFI – Best for Parents
Lendkey – Best for Offers from Community Banks and Credit Unions
SoFi® – Best for Member Perks
RISLA – Best for Borrower Protections

Pros

Customizable payments

Ability to set up autopay for biweekly payments

Offers in-school refinancing for students in their within six months of graduation
Nine-month grace period and option to skip one payment per year

Cons

Cosigner release only available for certain loans

Not available in Mississippi

HIGHLIGHTS

Minimum income requirements
Does not disclose

Minimum credit score
650 (600 if you have a creditworthy cosigner)

Loan amount
$5,000 up to $550,000 in most states

Loan terms
Customizable between 5 and 20 years

Fees
No origination or application fees. No late fees

Fixed interest rate
4.65% – 9.99%(includes 0.25% autopay discount)

Earnest is our top overall pick thanks in large part to its customizable payments, which allow borrowers to pick the monthly payment that fits their budget, and set their 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, and there’s a lengthy nine-month grace period after graduation.
Earnest doesn’t charge late fees (or any fees at all, really) and consistently offers low starting interest rates, especially if you set up autopay. 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. There’s also a nine-month payment grace period after graduation.
Read full Earnest student loan refinance review>>

Pros

Allows parents to transfer PLUS loans into student’s name.
Excellent customer service
Low maximum APY compared to other refinancing lenders

Cons

No rate discounts or cosigner release
Higher credit score requirement than some lenders
Fewer repayment term options for parent refinance loans
Requires a bachelor’s degree or higher

HIGHLIGHTS

Minimum income
$35,000

Minimum credit score
680

Loan amounts
Minimum of $10,000. Maximum varies based on eligibility.

Loan terms
5, 7, 10, 15 or 20 years for students. 5 or 10 years for parents.

Fees
No application or origination fees. Late fee of up to $50.

Fixed interest rate
4.49% – 9.19%

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 at the top choice for parents as other lenders also tend to limit the number of terms available 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. With nearly 2,300 reviews, the company has a 4.9 rating (out of 5 stars) on Trustpilot — the highest of any lender Money looked at. It also boasts an average monthly savings of $334 for its refinancing customers.
Worth noting: You have to have a minimum loan of $10,000 to qualify. Medical residency and bar study loans aren’t eligible for refinancing with ELFI. Neither are international student loans made outside the U.S.

Pros

Low minimum refinancing amount
Associate degrees are eligible to refinance
Partners with hundreds of banks and credit unions
Can refinance while still in school

Has a referral rewards program

Cons

Does not refinance parent PLUS loans
No ability to choose a specific lender
Some credit unions may require you to become a member before borrowing
Requires a bachelor’s degree

HIGHLIGHTS

Minimum income
Does not disclose (though “steady employment or job offer” is required)

Minimum credit score
Does not disclose

Loan amounts
$5,000 – $125,000 (undergraduate debt) or $250,000 (graduate debt)

Loan terms
5, 7, 10, 15 or 20 years

Fees
No application or origination fees. Late fees depend on individual lenders

Fixed interest rate
3.98% – 9.24% APR (with autopay discount)

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, allows for refinancing on balances as low as $5,000, and offers 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.

Pros

Income-based payment option

Up to 24 months of forbearance for financial hardships

In-school refinancing available

Offers internship and nursing rewards programs

Cons

Only offers fixed-rate loans

Maximum loan term is 15 years

Cosigner release not available in all states
Some perks reserved for Rhode Island residents

HIGHLIGHTS

Minimum income requirements
$40,000

Minimum credit score
Not disclosed

Loan amount
$1,500 minimum. The maximum depends on the type of loan: $200,000 (undergrad or parent loans), $250,000 (most graduate degrees), $350,000 (some professional degree programs)

Loan terms
5, 10 or 15 years

Fees
None

Fixed interest rate
3.99% – 8.74% APR (with 0.25% autopay discount)

RISLA is a nonprofit lender that stands out from other loan companies because of its borrower protection programs, including an income-based repayment option. Under this program, monthly payments will never exceed 15% of the borrower’s (or cosigner’s) discretionary income. And if there is still a loan balance after 25 years on the repayment plan, RISLA will forgive the remainder. These are valuable perks since typically only federal student loans have income-based payment and forgiveness options.
RISLA also offers a cosigner release, military service benefits, a very low minimum loan amount and a six-month grace period after leaving school, and there’s an economic hardship forbearance option of up to 24 months to help borrowers experiencing financial hardship, unemployment or disability.

Pros

Members get rate discounts, awards and perks
Available for associate degrees
Special payment plans for medical residency

Deep experience in student loan refinancing

Cons

Bar exam loans for lawyers aren’t eligible for refinancing

CFPB complaints have been trending upward over the last year

HIGHLIGHTS

Minimum income requirements
Does not disclose

Minimum credit score
650

Loan amount
$5,000 up to total balance

Loan terms
5, 7, 10, 15 or 20 years

Fees
No application, pre-payment or late fees

Fixed interest rate
4.49% – 10.99% with all discounts

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. To date, it has issued more than 550,000 student loans.
The lender 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 gets relatively high marks from customers, with 4.3 out of 5 stars on Trustpilot, and they lender’s SmartStart loan option allows borrowers to ease into repayment on their refinanced loan, with nine months of partial payments before full principal and interest payments are due. There are also specific refinancing programs for medical students, medical residents, law students, MBA students, and parents.
Read full SoFi student loan refinance review>>

Other Companies We Considered
The companies reviewed below didn’t make it into our top picks, but they may offer competitive student loan refinance interest rates and loan terms that may suit some borrowers.
MPower Financing
MPower Financing is a great option for borrowers who are not U.S. citizens or permanent residents, as the public benefit corporation 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. The lender has also reached its funding capacity for 2026 and has paused originations for the time being. New borrowers can apply to join the waitlist only.
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. Citizens Bank also has higher starting fixed interest rates than others on our list (nearly 6%), though it does offer several discounts, including a loyalty discount and an autopay discount.
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. The right choice depends on the types of loans you have, and the rate and terms you’re eligible for.
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. But there are some real downsides to consider 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, like the new Repayment Assistance Plan (RAP),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 private student loans, the loans are switched to a new loan servicer. Private loan rates, policies and customer service varies by lender, so be sure to shop around and compare a few options before applying to refinance. You should also look at each lender’s hardship options in case you ever can’t make your payments.
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 a credit score in the mid-600s or higher, though higher scores will qualify you for the best interest rates. 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. You should also check what’s required for a cosigner release, as some lenders have very lengthy waiting periods.
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.
Latest student loan repayment news
The Repayment Assistance Plan (RAP), which is the new income-based student loan repayment option for federal student loans, came online July 1, 2026. Monthly payments under the plan range from 1% to 10% of a borrower’s adjusted gross income. RAP will eventually replace all of the existing income-driven options. Some borrowers have until the summer of 2028 to decide whether they want to switch to RAP. But borrowers in the now-defunct Saving on a Valuable Education (SAVE) plan have to act more immediately. The Education Department has said they have 90 days to switch after receiving a notification from their servicers. Many borrowers have reported getting 30-day extensions. Still, for the first wave of borrowers, that deadline is here. SAVE borrowers who don’t switch to a new plan will be automatically placed in the standard plan. That will likely be a painful budget adjustment: Recent research from JP Morgan found that SAVE borrowers who are placed into the standard plan could see their payments rise to 12% of their take-home pay, up from about 3%.
In other news, the U.S. Department of Education recently extended the sign up period for a new discount that would allow federal student loan borrowers to reduce their interest rate by one percentage point. They simply need to set up autopay for their monthly loan payments before the end of 2026. The discount is available through mid-2028.

Best Student Loan Refinance Companies FAQ
What happens when you refinance student loans?
Refinancing involves taking out a new loan, ideally one with better terms, to pay off your existing debt(s). With federal loans, you’ll have to leave the federal loan program and take out a private loan to refinance your debt, while refinancing private loans usually means switching lenders. Most borrowers look for a lower interest rate when refinancing.
How often can you refinance student loans?
There is no limit to how often you can refinance your loans. Some borrowers may find that they can qualify for lower rates later as the economy changes and their credit scores improve, so it can make sense to shop around once a year to see what loan options are available.
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. Some lenders will allow you to apply for a cosigner release if you meet its annual income requirements and make a specific number of payments on time, but not all lenders offer that option.
Who has the best student loan refinance rates?
As of October 2026, you can find the lowest student loan refinance annual percentage rates (APRs) through LendKey, SoFi, Splash and RISLA, which offer fixed rate loans starting under 4%. However, other lenders may offer a lower rate for your specific situation, so it’s always smart to shop around.
Is it ever a good idea to refinance student loans?
It can be a good idea to refinance your student loans if you can get a lower interest rate or reduce your monthly payment. Be careful about refinancing federal student loans, though, as doing so will mean losing the unique benefits these loans come with, like Public Student Loan Forgiveness and income-based repayment plans.

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 are 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 on 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 it’s 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 November 2026

Earnest – Best Overall
ELFI – Best for Parents
LendKey – Best for Offers from Community Banks and Credit Unions
SoFi® – Best for Member Perks
RISLA – Best for Borrower Protections

Key Takeaways

The best student loan lenders include Earnest, Sallie Mae and SoFi. Several well-known lenders offer very similar products, so it’s critical to shop around. Some lenders excel at serving particular types of students or offer unique perks that may matter to you.
Undergraduate students should always max out federal student loans before turning to private options, which tend to be more expensive and offer fewer protections. Parents with strong credit can often qualify for better terms in the private market than those available through federal Parent PLUS loans.
Methodology: Money reviewed loan products from 14 lenders, evaluating interest rates, fees, repayment terms, borrower protections and more.

Private student loans can help you fill in the funding gap after you’ve tallied all your scholarships and grants and maxed out federal student loans. Private student loans are credit based, meaning not every student or parent will qualify. In fact, nearly 90% of undergraduate private student loans have a cosigner since undergraduates are often too young to have an established credit history.
Our top picks for best student loans
The following companies are listed in alphabetical order.

Abe – Best for Borrower Protections
Ascent – Best for Borrowers Without a Cosigner
College Ave – Best for Parents
Earnest – Best for Flexible Repayment
MPower Financing – Best for International Students
Sallie Mae – Best for Non-Degree Programs
SoFi® – Best for Member Perks

Pros

In-school default protection
Grace period of up to 12 months
Several forbearance options
2% principal reduction after graduation

Cons

Lacks the history of more established lenders so customer reviews are limited
Lower lifetime borrowing maximums than other lenders

HIGHLIGHTS

Loan amounts
$1,000 up to total school-certified cost of attendance

Loan terms
5, 7, 10, 15 or 20 years

Fixed APR
2.08% – 16.58%

Minimum credit score
Not disclosed

Minimum income
Not disclosed

Abe, which launched in the summer of 2024, is a new lender in the private student loan space. Like most lenders, Abe allows borrowers to choose whether they want to make in-school payments or defer payments until they graduate. But Abe stands out for its in-school default protection. If a borrower chooses to start repaying while enrolled and ends up falling behind, Abe will automatically switch them to the deferred payment program.
Abe has an option to extend its 6-month grace period up to a full year, and a shorter-than-normal 12-month period to apply for cosigner release. The company also offers some of the most robust — and transparent — hardship protections of any lender. Borrowers can get 12 months of forbearance for a job loss or other financial hardship, natural disaster or illness.
Aside from the autopay rate discount, borrowers can reduce their interest rate by an additional 0.05% for every six months of on-time payments (for a maximum discount of 0.25%). Plus, borrowers can shave 2% off their principal after they graduate through Abe’s Grad Reward.

Pros

Loans without cosigners or credit histories available

Bigger than normal discounts for setting up automatic payments
1% Cash Back Graduation Reward

Cons

First- and second-year students not eligible for outcomes-based loans

Lower loan maximums than some lenders

HIGHLIGHTS

Loan amounts
$2,001 to $200,000 lifetime maximum for undergraduate loans, $400,000 lifetime maximum for graduate loans.

Loan terms
Five terms for credit-based loans (5, 7, 10, 12 and 15 years) and two terms (10 and 15 years) for outcomes-based loans

Fixed APR
1.99% – 17.50% (lowest rate includes autopay discount)

Minimum credit score
Not disclosed

Minimum income
$30,000

Ascent is the best option for borrowers without a cosigner due to its specialized non-cosigned loan options for undergraduate, graduate and DACA students. It offers two options for non-cosigned loans — a credit-based option for those who do have a borrowing history and an Outcomes-Based Loan® for those without. These are unique products, but you should know that both options have significantly higher starting APRs than cosigned loans offered by Ascent (and other lenders). The lender no longer publicizes the different rate ranges for each loan type, but when it did earlier this year, the credit-based loans without a cosigner started at 6.75% for fixed-rate loans and outcomes-based loans with a fixed rate started at 13.47%. For now, Ascent’s lowest rate loans are for graduate students, starting at 1.99%. Ascent does have a larger-than-normal discount for setting up autopay, with a 0.50% discount for all credit-based loans and a 1% discount for outcomes-based loans.
For borrowers with cosigners, Ascent offers competitive rates and a quicker 12-month period before you can apply for cosigner release. Other highlights include a 9-month grace period and loan products for career training and bootcamps.

Read full Ascent student loans review>>

Pros

Flexible repayment options for parents
Very competitive APRs for credit-worthy borrowers

Cons

Cosigner release only available after half the repayment term is completed
Late fee of up to $25 (several lenders have eliminated late fees)
Limited information about forbearance options or hardship protections online

HIGHLIGHTS

Loan amounts
$1,000 to total cost of attendance

Loan terms
5 to 15 years for most loans; up to 20 years for medical, dental and law school

Fixed APR
1.94% – 17.99%

Minimum credit score
Mid-600s

Minimum income
Not disclosed

Like most lenders, College Ave Student Loans offers a suite of undergraduate and graduate loans. But it also offers parent loans that have a customizable repayment term. Parents can choose a term anywhere between 5 and 15 years, which allows you to pick a term that best fits your budget. Overall, the lender regularly offers some of the lowest starting APRs in the industry. (Note that the lowest rates currently are for career school loans. Loans for undergraduate students start at 2.19%.) But if you have fair credit, you may find better deals elsewhere. College Ave’s maximum APR is among the highest on the market.
Read full College Ave student loan review>>

College Ave Disclaimer
Disclaimer

1. All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2. As certified by your school and less any other financial aid you might receive. Minimum $1,000.
3. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Pros

Longer-than-normal grace period¹
Skip-a-payment program²
Rate match guarantee³
Cosigner release⁴

Cons

Student must pursue a bachelor’s or graduate degree

HIGHLIGHTS

Loan amounts
$1,0005 to total school-certified cost of attendance

Loan terms
5, 7, 10, 12 or 15 years6

Fixed APR
2.24% – 16.49%7 with autopay discount8

Minimum credit score
650

Minimum income
None

Earnest offers four in-school repayment options, five terms for all of its loans, and a longer-than-usual grace period. It has a unique skip-a-payment benefit, where borrowers have the option to skip one monthly payment a year without penalty, and it also boasts a rate match guarantee.
Earnest doesn’t charge any fees, and among the lenders we reviewed, it had the third highest customer review rating on Trustpilot, with a 4.6 (out of 5 stars) based on more than 7,500 borrower reviews. In May 2026, Earnest introduced a cosigner release program, and it now offers one of the more transparent cosigner release policies on the market. Borrowers can apply for cosigner release after making at least 12 consecutive, full payments, and they’ll have to meet Earnest’s eligibility and credit requirements to be approved. The lender also says it will also automatically review borrowers who paid off half of their principal balance to see whether they’re eligible for release.
Read full Earnest student Loans review>>

Earnest Disclosure
Disclosure

1 Repayment terms and repayment options available vary based on loan type.
2 Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
3 Terms and conditions apply. To qualify for this Earnest Rate Match and Bonus offer: 1) you must submit a completed student loan application; 2) you must provide documentation of an eligible competitive rate offer exclusive of all discounts by calling Client Happiness at (888) 601-2801 or chat on Earnest.com and follow the instructions to send in your proof of lower rate; and 3) you must provide a valid email address during the application process. The bonus will be paid out in the form of a gift card. You will receive instructions on how to redeem the gift card via the email address you have provided. Limit one rate match bonus per application. A bonus cannot be issued to residents in MA. Bonuses that are not redeemed within 180 calendar days of the date they were made available to the recipient may be subject to forfeit. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received as required by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. Additional terms and conditions may apply. Earnest may discontinue this program at any time.
4 To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply.
5 Residents of Hawaii must request a loan of at least $1,501.
6 Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples:
1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate (“APR”): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10.
2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months.
3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0.
4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0.
7 Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% – 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% – 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
8 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
9 Only applicants who have previously obtained a disbursed Earnest Private Student Loan are eligible for the Loyalty Discount. To obtain the discount you must also apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest Private Student Loans through Juno are excluded from Loyalty Discount eligibility. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
10 Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No.78-8016373916-
Earnest Private Student Loans are subject to credit approval.
Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.
Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770).
FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

Pros

Loans available to international students without a cosigner

Interest-only payments while in school

Cons

Higher-than-average rates and fees

Only one repayment option

Must attend a partner school

Not available to first- or second-year undergraduate students

HIGHLIGHTS

Loan amounts
$2,001 to $100,000

Loan terms
10 years

Fixed APR
10.89%

Minimum credit score
Not required

Minimum income
Not disclosed

Although some private student loan lenders will issue loans to international students, they typically require the student to have a cosigner that is a U.S. citizen or permanent resident. If the student doesn’t have close friends or family in the country, it can be difficult to find loans for school.
MPower is one of the only lenders that offers private student loans to international students without a cosigner or collateral. The lender offers visa prep courses and a job search tool for international students, and repaying these loans helps international students build a credit-history in the U.S. MPower works with 500 schools in the U.S. and Canada. As of August 2026, MPower says it isn’t issuing any additional new loans for 2026 after reaching its current funding capacity. If this is a lender you’re interested in using in the future, you may want to apply early in the season to avoid a similar scenario.

Pros

Offers career training, medical residency and bar exam loans
Cosigner release available after just 12 monthly payments

Cons

Limited repayment terms
Late fee of up to $25 (other lenders have eliminated this)

HIGHLIGHTS

Loan amounts
$1,000 to total school-certified cost of attendance

Loan terms
10 or 15 years

Fixed APR
2.08% – 17.49% with autopay discount

Minimum credit score
Not disclosed

Minimum income
Not disclosed

Like other lenders, Sallie Mae has education loan options for undergraduate, graduate, professional and medical school programs. But it’s also one of the few lenders that has options for students enrolled in trade or certificate programs. Within the professional programs, it offers loans designed specifically to help borrowers navigate periods where they’re not earning much, like during medical residency periods or when studying for the bar exam. Another unique feature: Borrowers who are enrolled in college less than half-time are still eligible to apply. (Many lenders are open to part-time students, but still require at least half-time enrollment.)
Most top lenders today offer at least three or four different terms for repayment; Sallie Mae only offers two for undergraduate loans and one for graduate school loans. But it does allow borrowers to sign up for a graduated repayment period, where they can make interest-only payments for up to a year after the grace period ends.
Read full Sallie Mae student loan review>>

Pros

No late or insufficient fund fees

Multiple rate discounts available
Extra member benefits

Cons

Not available for associate degree programs
Must make 24 months of payments before applying for cosigner release

HIGHLIGHTS

Loan amounts
$1,000 to total school-certified cost of attendance

Loan terms
5-year, 7-year, 10-year, and 15-year terms

Fixed APR
2.99% – 15.99% (with 0.25% autopay discount)

Minimum credit score
Not disclosed

Minimum income
Not disclosed

For those looking for a private student loan without fees, SoFi® is a top lender. Like most student loan lenders, it doesn’t charge origination fees. But SoFi also doesn’t charge any late fees. In addition to the standard discount for setting up automatic payments, existing borrowers can earn a returning scholar discount. SoFi also offers a cash bonus of up to $250 for borrowers who have a 3.0 GPA or higher. And students and parents who borrow through SoFi have access to exclusive member benefits like financial coaching and estate planning, plus a rewards program where you can earn points for activities like checking your credit score and redeem them against your loan.
SoFi’s cosigner release policy — requiring 24 months of on-time payments before applying — is better than some lenders, but there are several lenders that offer shorter periods.
Read full SoFi student loans review>>

What you need to know about student loans
Student loans are issued by the federal government or private lenders to help students pay for undergraduate or graduate studies. The loan goes toward tuition, books, student housing and other education-related expenses.
Once a student loan application is approved, the funds are sent directly to the school to cover tuition, fees and on-campus student housing. Any remaining balance is then disbursed to the student.
All private loans accrue interest from when the loan is dispersed, while some federal loans don’t start accruing interest until you enter repayment. For private loans, in-school repayment options usually include deferment, interest-only or full payment, and repayment terms typically range from five to 20 years.
Federal vs. private student loans
Since private loans don’t offer the same protections that federal loans do, the general advice is to seek private student loans after you’ve exhausted every federal option.

Federal loans

Private loans

Credit Check

Not required for most loans

Required

Minimum income required

Not required

Required

Annual borrowing limits

Borrowing limits apply to most loans

Typically no annual limit

Payments while in schools

Payments deferred until student leaves school

Payments may be required

Eligible for loan forgiveness

Yes

No

Federal student loans
Federal student loans are the first choice for many due to their low rates, flexible repayment options and federal protections.
To apply for federal loans and additional financial aid, students must submit the Free Application for Federal Student Aid (FAFSA) once every school year. Your school will calculate how much you’re eligible to borrow based on the cost of attendance and your family’s financial information.
The federal government limits how much a student can borrow annually and over their lifetime based on the academic year, loan type and the borrowers’ dependency status.

Pros

Income-driven loan repayment plan options

Opportunities for student loan forgiveness

Fixed interest rates that apply to all borrowers

Eligible for forbearance if experiencing a financial hardship

No credit checks for most loans

Cons

Disbursement fees apply

Only available to U.S. citizens and permanent residents with Social Security numbers

Strict annual and aggregate limits

Private student loans
Private student loans are similar to personal loans, as they are issued by private banks or credit unions.
Private student loan lenders look at students’ credit scores and credit reports to determine interest rates and loan approval. Since most students don’t have enough credit history, lenders often require a qualifying cosigner.
Private loans don’t feature the same benefits as federal student loans, but they can help pay your school’s total cost of attendance if you’re no longer eligible for federal aid.
Most private lenders suggest borrowers start loan repayment while still in school, but most offer in-school deferment or grace periods, although interest will continue to accrue.

Pros

Available to U.S. citizens and qualifying international students
No financial need requirements
Fixed and variable rates
Higher loan limits for undergraduate loans

Cons

Not eligible for federal forgiveness programs
Limited repayment options and hardship assistance programs
Requires credit check
May have higher APRs
Will likely require a cosigner

Student loan interest rates
Current private student loan interest rates range from about 2% to 18%. The interest rate on your loans depends on the type of loans you have, your education level and the lender issuing the loan.
Rates can be fixed or variable. Fixed interest rates stay the same for the entire repayment period. By contrast, variable interest rates can change over time, so they are usually best for borrowers who want a shorter repayment term.
Average student loan interest rate
Federal student loans
Interest rates on federal student loans are established by federal law. The rates are fixed, so they stay the same for the duration of your loan term.
For federal student loans, we calculated the average interest rate using the rates for the current academic year. The overall average interest rate for federal student loans is 7.87%.
The rates you’ll pay depend on the loan and borrower type. These are the rates for loans issued for the 2026-2027 academic year:

Loan type

Borrowers

Interest rate

Direct subsized loans and Direct unsubsidized loans

Undergraduates

6.52%

Direct unsubsidized loans for graduate students

Graduate or professional students

8.07%

Direct PLUS loans

Parents and graduate students who’ve borrowed before June 30, 2026. (New graduate borrowers cannot take out PLUS loans.)

9.07%

Private student loans
Private student loans work differently. Lenders set their rate range based on an index, such as the Secured Overnight Financing Rate (SOFR). The rates can change over time as the market fluctuates, so you may find that current rates are higher or lower than when you took out your loan.
Other factors affect your private loan rates, including your credit history, income, debt-to-income ratio and whether you have a cosigner. Looking at the rate ranges advertised by 11 major lenders, we calculated the averages: The average fixed rate is 8.89% and the average variable rate is 10.19%. Note that these are only illustrative. They aren’t reflective of the actual average rates offered by lenders.
How to apply for student loans
The following are general tips to consider before applying for student loans, whether federal or private.
Calculate your financial needs
Consider your school’s cost of attendance (tuition, materials, room and board, etc.) and then factor in additional living expenses. Money’s Best Colleges in America contains information about admission, costs, financial aid and graduation rates of hundreds of public and private institutions around the United States.
We recommend you consider federal loans first, as they have several advantages over private loans and a variety of options to choose from.
Shop around for private loans
If you need to take out a private student loan, keep in mind that each lender offers different terms, rates and benefits. They also have different underwriting models, so you may qualify for a lower rate with one lender even if they have a higher starting APR than competitors. That’s why you need to shop around and compare fees and APRs from multiple lenders before making a decision. A good place to start is a marketplace like Credible or LendKey, where you can review rates from several lenders at once.
Tip: Most federal student loans are available without a credit check, so they’re a good option for those with poor credit or no credit history.
Choose the right lender for you
To choose the best student loan, you should have a clear understanding of what each lender requires and what they offer regarding interest rates and repayment options:

Check your lender’s credentials: Only do business with reputable lenders. To determine this, use reputable sources like Federal Deposit Insurance Corporation (FDIC), Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
Apply for prequalification: By prequalifying, you get to see what rates, terms and benefits each lender offers, while avoiding a hard credit inquiry. Be sure to understand how different interest rates and terms affect your payments.
Look for lenders with in-school repayment options: Starting loan repayment early will reduce the debt burden. Opt for private lenders with multiple options, a grace period, and no penalties for early loan repayment.
Opt for lenders with low or no fees: Application and origination fees are processing costs added to your principal, which means you’ll pay interest on them. All federal loans have origination fees; private loans typically do not. Note that student loan companies are legally prohibited from charging prepayment penalties. If you can, look for lenders that don’t charge late fees either.
Take advantage of discounts and perks: Many lenders offer autopay discounts and other perks such as free study or tutoring programs and bonuses for good grades or referring friends.

Latest student loan news
Student loan lenders, who’ve primarily focused on undergraduate loans over the past several years, are trying to stake a claim in the graduate space. The One Big Beautiful Bill Act (OBBBA) eliminated the Grad PLUS loan program for new borrowers and imposed new federal borrowing caps: Graduate students can now borrow up to $20,500 a year and professional students up to $50,000 a year (Existing borrowers are grandfathered into the new rules.)
Private lenders are eager to fill the gaps for credit-worthy grad students, and they’ve launched new loan programs as well as lowered rates for graduate loans. Sallie Mae is forecasting a 12% to 14% increase in loan originations this year due to the stricter government borrowing rules, according to the Wall Street Journal.
On the repayment side, borrowers are still facing a bumpy road into the new suite of repayment plans. Millions of borrowers in the now defunct SAVE plan were told they’d have 90 days to switch plans, with the countdown starting after receiving notices from their loan servicers. But now that the first wave of deadlines has come, borrowers on reported receiving “final notices” that gave them an additional 30 days. Borrowers who don’t proactively switch to a new plan could be making a costly mistake. Recent research from JP Morgan found that SAVE borrowers who are placed into the standard plan could see their payments rise to 12% of their take-home pay, up from about 3%.

Best student loans FAQs
What is the best student loan to get?
Federal student loans are the best option for student borrowers (both undergraduate and graduate). Federal loans offer relatively low fixed rates, flexible repayment options and more expansive borrower protections.
Is SoFi or Sallie Mae better?
SoFi and Sallie Mae are both well-known private lenders; neither is universally better. Both companies offer competitive rates and loan terms, but Money named SoFi as the best for perks and Sallie Mae as the best for students borrowing for non-degree programs.
Can you get student loans with bad credit?
If you have bad credit, federal loans are an excellent starting point. Most loans are available without credit checks, and the federal government doesn’t require a minimum credit score.
Do you need a cosigner for student loans?
Yes, most students usually need a cosigner with good credit — such as a parent or relative — to qualify for a private student loan. Federal loans are available without a cosigner, even if you don’t have good credit.
Is Trump forgiving student loans?
No, the Trump administration has not announced any widespread student loan forgiveness. Borrowers are still getting their debts canceled through long-existing programs including Public Service Loan Forgiveness and Borrower Defense to Repayment.

Best student loans methodology: How we picked our winners
We reviewed 14 private student loan lenders, evaluating them on more than 20 factors. We prioritized private lenders that offered the following:
Flexible repayment options
Federal student loans have several different standardized payment plan models, whereas private lenders often offer less flexibility. We looked for lenders that offered multiple in-school payment options. We compared the variety of repayment term lengths, favoring lenders with four or more term options, as the length of your term influences your interest rate and monthly payment, we believe that more options for a more customizable loan is valuable. We also considered whether lenders offered cosigner releases and how long a borrower had to wait before applying.
Competitive interest rates and low fees
We preferred 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 at or below 4% and maxing out around 15%, though we did make some exceptions. Private student loan lenders rarely charge origination or application fees. But some do charge late fees or insufficient fund fees. We gave points to lenders that waived these.
Unique perks, discounts or specialized products
Lenders often specialize in products for specific programs or populations of students, or they offer unique perks and discounts. These helped us identify stand-out lenders that offered something beyond competitive rates and repayment terms.
Borrower protections
As an industry, private student loans lack the consumer protections offered via federal loans, so it’s critical for borrowers to understand their options to reduce or pause payments should they run into problems paying. Forbearance policies vary from lender to lender, and it can sometimes be hard to find clear information about them when shopping around. We favored lenders with transparent policies on their websites and options to defer payments for up to a year, at a minimum.
Summary of Money’s Best Student Loans of November 2026

Abe – Best for Borrower Protections
Ascent – Best for Borrowers Without a Cosigner
College Ave – Best for Parents
Earnest – Best for Flexible Repayment
MPower Financing – Best for International Students
Sallie Mae – Best for Non-Degree Programs
SoFi® – Best for Member Perks