Top 10 Banks That Refinance Student Loans

Go through the article to understand about student loan refinancing, and different lenders who refinance student loans. Find the top 10 banks that refinance student loans. Also explore the alternatives for banks that refinance student loans.

Updated by Kanishkar P on 23rd July 2020

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Looking to tackle the rising interest rates by refinancing your loans? Refinancing is a good step to help make your debt more manageable but it isn’t for everyone. Let's break it down. 

There is nothing fun about paying back student loans except when you save some money. This can be done by managing your debt the right way, so if you have a number of loans to manage it well would be to consolidate the loans into a single loan with a lower interest rate. With this, you have to just make a single payment each month so it is much easier to track. 

In the current scenario, we have the student loan debt piling up and with this rising benchmark rate, the variable rates are also expected to go up to. 

When you refinance with a fixed interest rate you are safeguarded from the rising rates. 

Student loans can be refinanced through online lenders, credit unions or banks that refinance student loans.

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Student loan refinancing

Refinancing is nothing but eliminating your old private or federal student loans from federal and multiple private lenders and getting a new private student loan under a single private lender. New private loan refers to a new lender, a new contract, a new loan amount and a new interest rate.

This option is best if you have a mix of both Federal and Private loans. You can also refinance either your federal student loans or private student loans separately. It will combine both of these loans and the interest rate will be determined based on your credit score. So, if you have a good credit score, the interest rates will be lower.


Who can refinance your student loans?

Student loan refinancing is a good option for reducing your interest rates and to have some useful additional benefits. But it is more important to make the right choice in selecting the best lender for refinancing your student loans. There are different types of lenders who offer student loan refinancing. Private banks, online lenders and credit unions offer student loan refinancing. You can explore the Best Loan Companies to Refinance Your Student Loan in order to make the best choice out of the available student loan refinancing options.


Top 10 Banks that refinance student loans

Among different financial institutions, banks that refinance student loans play a major role in reducing the interest rates on your existing loans through their student loan refinancing programs. The best banks that refinance student loans have laid their own interest rates and other regulations such as repayment terms on the refinanced student loans.

Here is a list of the top 10 banks that refinance student loans.

Banks

Fixed interest rate

Variable interest rate

Terms

Eligible degrees

Earnest 

3.45%-7.49%

2.14%-6.79%

5 to 20

Undergrad

& Graduate

SoFi

3.46%-7.94%

2.14%-7.94%

5, 7, 10, 15, 20

Undergrad

& Graduate

CommonBond

3.46%-8.24%

2.14%-8.01%

5, 7, 10, 15, 20

Undergrad

& Graduate

Discover

4.24%-7.49%

3.99%-6.99%

10 to 20

Undergrad

& Graduate

Wells Fargo

3.25%- 9.24%

3.99%-9.99%

5, 7, 10, 15, or 20

Undergrad

& Graduate

Laurel Road

3.50%-7.02%

2.25%-6.65%

5, 7, 10, 15 or 20

Undergrad

& Graduate

PenFed

3.48% - 6.03%

2.67% - 7.41%

5, 8, 12 or 15 years

Undergrad

& Graduate

LendKey

3.39%-7.75%

1.90%-8.59%

5,7,10,15or20 years 

Undergrad

& Graduate

Splash Financial

Starts at 3.48%

1.99%-7.06%

5 to 25

Undergrad

& Graduate

College Ave

Starts at 3.54%

2.62%-6.12%

5 to 20 years

Undergrad

& Graduate

The interest rates mentioned above may vary depending on your credit scores. Credit scores play a major role in fetching you good interest rates. Higher the credit score lower is the interest on your refinanced student loan.


If not banks where else?

Banks that refinance student loans serve as a good option for you to reduce the interest rates on your existing student loans. But banks are not the only lending options to refinance your student loans. There are other lenders also, such as online lenders and credit unions that refinance student loans.

The credit unions and a few other online lenders may offer you student loan refinancing with better interest rates when compared to banks that refinance student loans. As credit unions are nonprofit financing firms, they are more flexible and they may provide more benefits when compared to the banks that refinance student loans.

So don’t restrict your options, instead, explore more to discover the best suit for you.


Concluding Thoughts

Refinancing your student loans may be a good solution for you to get rid of large interest rates on your existing student loans. Refinancing helps you get low fixed rates on your loans. But most importantly you can actually plan wisely and select the best student loans with maximum benefits and low-interest rates to avoid the difficulties in the future.

But when you are into an issue during your loan repayment there are always helping hands to get you out of the issue. One among them is Banks that refinance student loans. Though banks usually charge higher interest rates on student loans, the rates on student loan refinancing are considerable when compared to the larger interest rates on the existing student loans. This doesn’t make them the best choice. There are options among the best banks that refinance student loans and also alternatives for banks that refinance student loans. Check out each and every alternative to make sure you end up with the best choice.