The purpose of student loan refinancing is to score a better interest rate or terms. And landing a better interest rate could save you time and money. 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.
March 2024’s Best Rates for Student Loan Refinance
Rather than searching for lenders one-by-one, we recommend starting the process with an automated student loan refinance search tool. With the free Sparrow form, you can see your pre-qualified rates from 17+ student lenders.
Best for: Residents of, or students in, Arkansas.
Best for: Residents of, or student in, Texas.
Best for: Borrowers looking for a repayment term that matches their budget.
Best for: Borrowers who want a competitive interest rate and flexible repayment options.
Best for: Borrowers who do not have a degree.
Best for: Borrowers who are residents of or students in Indiana.
Best for: Borrowers who want to work with a non-profit lender.
Best for: Borrowers that want to work with a credit union or community bank.
Best for: Borrowers who want competitive interest rates and a flexible forbearance policy.
Best for: Borrowers who want competitive interest rates and the ability to refinance PLUS loans.
*Student loan refinance rates listed have an autopay discount only on the lower boundary.
Best for: Borrowers with a strong credit score or a creditworthy cosigner.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
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.
>> MORE: What credit score do I need to refinance my student loan?
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.
>> MORE: Check which student loan refinance options you qualify for
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 your Student Loan 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.
>> MORE: Check your refinance student loan rates without hurting your credit score
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 aims 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.