Best Refinance Rates for Student Loans | February 2023

The purpose of student loan refinancing is to score a better interest rate or terms. And landing a better interest rate could quite literally save you thousands. So, before choosing just any refinance loan, make sure you’re getting the best rate possible. 

Here are the best rates for student loan refinancing.

February 2023’s Best Rates for Student Loan Refinance

Arkansas Student Loan Authority (ASLA)

Fixed Interest Rate: 3.25% to 7.48%
Variable Interest Rate: N/A
Maximum Borrowing Limit: $250,000
Minimum Credit Score: 670

Best for: Residents of, or students in, Arkansas.

Apply with ASLA.

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Brazos

Fixed APR range: 3.95% to 6.00%
Variable APR range: 4.54% to 8.34%
Maximum Borrowing Limit: $400,000
Minimum Credit Score: 720, or 690 with a qualified cosigner

Best for: Borrowers who are residents of Texas.

Apply with Brazos.

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College Ave 

Fixed APR range: 5.99% to 11.99%
Variable APR range: 5.99% to 11.99%
Maximum Borrowing Limit: $300,000
Minimum Credit Score: Upper 600s

Best for: Borrowers looking for a repayment term that matches their budget.

Apply with College Ave.

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Earnest

Fixed APR range: 4.47% to 8.99% (including 0.25% auto-pay discount)
Variable APR range: 4.99% to 8.94% (including 0.25% auto-pay discount)
Maximum Borrowing Limit: $500,000
Minimum Credit Score: 680

Best for: Borrowers who want a competitive interest rate and flexible repayment options.

Apply with Earnest.

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*Rates include autopay discount.

EDvestinU

Fixed APR range: 7.41% to 11.03%
Variable APR range: 7.39% to 9.14%
Maximum Borrowing Limit: $200,000
Minimum Credit Score: 700

Best for: Borrowers who do not have a degree.

Apply with EDvestinU.

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INvestED

Fixed APR range: 5.85% to 9.48%
Variable APR range: 6.85% to 10.49%
Maximum Borrowing Limit: $250,000
Minimum Credit Score: 670

Best for: Borrowers who are residents of or students in Indiana.

Apply with INvestED.

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ISL Education Lending

Fixed APR range: 3.94% to 8.48%
Variable APR range: N/A
Maximum Borrowing Limit: $5,000 ($10,000 for California residents)  to $300,000
Minimum Credit Score: 670

Best for: Borrowers who want to work with a non-profit lender.

Apply with ISL Education.

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LendKey

Fixed APR range: 4.99% to 10.68%
Variable APR range: 4.76% to 7.86%
Maximum Borrowing Limit: $300,000
Minimum Credit Score: 680

Best for: Borrowers that want to work with a credit union or community bank.

Apply with LendKey.

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MPOWER

Fixed APR range: 11.74% (12.69% APR)
Variable APR range:
Maximum Borrowing Limit:  $100,000
Minimum Credit Score: N/A

Best for: Borrowers who want competitive interest rates and a flexible forbearance policy.

Apply with MPOWER.

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Nelnet Bank

Fixed APR range: 4.74% to 9.69%*
Variable APR range: 6.94% to 13.60%*
Maximum Borrowing Limit: $225,000
Minimum Credit Score: 640

Best for: Borrowers who want competitive interest rates and the ability to refinance PLUS loans.

Apply with Nelnet Bank.

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*Rates listed have an autopay discount only on the lower boundary.

SoFi

Fixed APR range: 4.49% to 8.99%
Variable APR range: 4.49% to 8.99%
Maximum Borrowing Limit: Up to your total outstanding balance
Minimum Credit Score: Does not disclose

Best for: Borrowers with a strong credit score or a creditworthy cosigner.

Apply with SoFi.

View disclosure.

When Should You Refinance Student Loans?

Before you refinance your student loan(s), you should consider a few factors.

Loan Type

If you have federal student loans, refinancing will eliminate a variety of benefits unique to federal student loans. If you plan on utilizing any of those benefits, such as income-driven repayment and potential forgiveness, hold off on refinancing.

Income and Credit

The purpose of refinancing is to score a lower interest rate or better terms than the loan(s) you currently have. You will need to have a steady income and a good credit score to receive competitive loan offers. If your income and/or credit score isn’t in a better place than when you originally borrowed the loan, it’s best to wait until it is to refinance.

Payment History

Lenders may examine your repayment history before agreeing to lend to you. If your repayment history is full of late payments, it may be challenging to qualify for a competitive refinance loan. On the other hand, if your repayment history shows consistent on-time payments, you may qualify for a solid refinance loan.

How to Get the Lowest Student Loan Refinance Rate

The key to finding the lowest student loan refinance rate is comparing your options side-by-side. Without the transparency to see all of your loan options in one place, it can be challenging to decipher which is the best option.

To see which student loan refinance options you qualify for, and at what rates, submit the Sparrow application. The Sparrow process will allow you to explore the best student loan refinance rates in one place.

Does Refinancing Hurt Your Credit?

When you inquire about a potential refinance loan, you may go through a prequalification process which will allow the lender to give you an estimate of the interest rate and terms you would qualify for. The prequalification process does not hurt your credit.

If you decide to move forward with a loan option, you will need to submit a formal application which will hurt your credit score. A formal refinance loan application results in a hard credit check inquiry, although this will only hurt your credit score temporarily.

Is Now the Time to Refinance Student Loans?

If you have federal student loans, now might not be the best time to refinance your student debt. Federal student loans are currently scheduled to remain in forbearance until June 30th, 2023 or 60 days after student loan forgiveness litigation is resolved or debt is forgiven. During this time, federal student loans will not be accruing interest, and making minimum monthly payments is not required. Refinancing your federal student loans during this time would make interest start to accrue, and minimum monthly payments would be required.

If you have private student loans, however, there are no time limits on refinancing.

Final Thoughts from the Nest

Before refinancing your student loans, consider whether now is the appropriate time to refinance. If so, start the process with Sparrow to be sure you receive the best rates for student loan refinancing.

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.