Student loan refinancing can cut your interest rate and simplify repayment — but refinancing federal loans into a private loan permanently eliminates income-driven repayment and Public Service Loan Forgiveness eligibility. That trade-off math is the most important thing to understand before you refinance. Here are six lenders worth comparing.
Refinancing federal student loans into a private loan permanently eliminates your eligibility for income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF) — never refinance federal loans without first confirming you have no path to either. That trade-off settled, the math: for borrowers with no PSLF path and stable income, refinancing federal loans into a lower private rate can save thousands in interest over the remaining term. Private-to-private refinancing (replacing one private loan with another) doesn't involve this trade-off at all. The six lenders below are worth comparing once you've confirmed where you stand on the federal-vs-private question.
| # | Card | ClearValue Rating | Highlight | Apply |
|---|---|---|---|---|
| 1 | SoFi SoFi Bank, N.A. | 4.2 / 5 | From 3.99% APR apr range (fixed) | Apply → |
| 2 | Earnest Earnest Operations LLC (Navient subsidiary) | 4.0 / 5 | Personalized — check your rate apr range (fixed) | Apply → |
| 3 | LendKey LendKey Technologies (loans funded by community banks and credit unions) | 4.0 / 5 | 4.39%–9.24% APR apr range (fixed) | Apply → |
| 4 | Splash Financial Splash Financial Inc. (marketplace connecting to partner lenders) | 4.0 / 5 | 3.99%–10.24% APR apr range (fixed) | Apply → |
| 5 | ELFI (Education Loan Finance) SouthEast Bank | 4.0 / 5 | Check rate at elfi.com apr range (fixed) | Apply → |
| 6 | CommonBond CommonBond Inc. | 4.0 / 5 | Check rate at commonbond.co apr range (fixed) | Apply → |
Student loan refinancing replaces one or more existing loans with a new private loan at a different rate and term. Done at the right time, for the right loans, it can cut thousands of dollars in total interest. Done without understanding the federal-loan trade-off, it can cost far more than it saves.
This guide covers six lenders worth comparing in 2026 — after walking through the most important decision you'll make before refinancing.
Refinancing federal student loans into a private loan is a one-way door. Once federal loans are refinanced into a private loan, you permanently lose:
When refinancing federal loans makes sense: you work in the private sector with no PSLF path, your income is stable enough that IDR plans don't provide meaningful payment reduction, and the rate difference is significant (at least 1-2% for meaningful savings over the loan term).
When it's almost never worth it: you work for a government employer, nonprofit, hospital system, public school, or other PSLF-qualifying organization; you're on an IDR plan with a forgiveness horizon; you have variable income or expect career changes in the next 3-5 years.
If you're refinancing private loans (loans you originally took from a private lender), the PSLF and IDR trade-off doesn't apply — you never had those federal protections on private loans. The math is straightforward: does the new rate plus any fees save money over the remaining term? Soft pre-qual from 3-4 lenders takes 30 minutes and gives you real rate comparisons.
Same-day or same-week rate shopping for the same loan profile: use soft pre-qual at each lender, compare total interest paid over your target term (not just the monthly payment), and factor in the full APR including any fees.
One useful scenario: get quotes for both your preferred term AND a shorter term. The rate difference between a 10-year and 7-year term is often modest; the interest savings on the shorter term can be significant if your budget can absorb the higher payment.
A growing number of employers offer student loan repayment assistance as a benefit — typically $100–$300/month applied directly to your loan balance. If your employer offers this, factor it into your refinancing math: it effectively functions as an interest subsidy on top of your rate.
The SECURE 2.0 Act (2022) also allows employers to make matching 401(k) contributions based on employee student loan payments — check whether your employer has implemented this benefit before accelerating payoff.
Refinancing multiple times is permitted and sometimes rational: if your credit score has improved significantly since your last refinance, if market rates have dropped, or if your income has increased and you want to move to a shorter term. Each refinance involves a new hard credit pull and resets your term clock — verify the break-even on total interest before refinancing again.
ClearValue Lending is not a student loan lender, servicer, or financial advisor. This guide presents publicly available information about student loan refinancing programs. Rates, eligibility requirements, and program terms change frequently — always get personalized rate quotes directly from lenders before making a decision. Federal loan trade-offs (PSLF, IDR eligibility) should be verified with your loan servicer and/or a student loan advisor before refinancing. See StudentAid.gov for authoritative information on federal student loan programs.
Refinancing federal loans makes financial sense when: (1) you have no path to PSLF (you work in the private sector and won't be switching to qualifying public service employment), (2) your income is stable and strong enough that IDR plans don't provide meaningful payment reduction, and (3) the rate you qualify for is meaningfully lower than your current federal rate. It costs you when: (1) you work for a government agency, nonprofit, or other PSLF-qualifying employer — refinancing eliminates all progress toward forgiveness; (2) your income is variable or you may need IDR plan flexibility; (3) you're on a Parent PLUS loan and considering income-contingent repayment (refinancing eliminates that option). The break-even math: compare total interest paid over your remaining term at the current federal rate vs. the new private rate, then factor in the value of any forgiveness you'd be giving up.
Variable rates are typically lower at origination but move with market benchmarks (usually SOFR plus a margin). Fixed rates are higher at origination but stay constant through the loan term. The math favors variable rates when: you plan to pay off the loan aggressively in 3-5 years (less time for rates to move against you) and your total loan balance is modest (rate swings have smaller absolute impact). The math favors fixed rates when: you're taking a longer term (10-20 years), your balance is large, or you value payment stability for budgeting purposes. One practical approach: get both rate quotes, calculate total interest under each scenario assuming rates rise 2% over 5 years in the variable scenario, and decide based on which scenario you can afford.
Yes — parent PLUS loans can be refinanced with private lenders into a lower-rate private loan. However, refinancing a parent PLUS loan into a private loan eliminates income-contingent repayment (ICR) eligibility, which is the only IDR plan available to parent PLUS borrowers. It also eliminates PSLF eligibility if the parent works in a qualifying employer. Some lenders allow the borrower (the student) to refinance parent PLUS loans into their own name — this transfers the obligation from parent to student, which has both legal and tax implications. Verify whether the lender supports PLUS loan refinancing and student-assumption features before applying.
Many student loan borrowers refinance with a creditworthy cosigner to access lower rates (the cosigner's credit profile improves the rate). Cosigner release allows the cosigner to be removed from the loan after the primary borrower demonstrates sufficient creditworthiness — typically after 12-24 months of on-time payments and meeting income and credit criteria at the time of release. Not all lenders offer cosigner release; verify this feature if you plan to use a cosigner. Important: until the cosigner is released, the loan appears on their credit report and counts toward their debt-to-income ratio — relevant if they're planning to buy a home or apply for other credit during that window.
Soft pre-qualification (also called rate check or rate preview) allows you to see your estimated rate range and loan terms based on a soft credit pull — which has no impact on your credit score. A hard credit pull happens only when you formally apply to finalize a loan. Soft pre-qual is standard at all six lenders on this list and is the right starting point for comparison: get soft pre-qual rates from 3-4 lenders on the same day (or within a short window), compare the actual rate and total interest for your specific loan balance and desired term, then choose the best offer before doing the formal application.
Refinancing student loans multiple times is permitted and sometimes financially rational. Trigger events: (1) your credit score improves significantly (740+ vs. prior 680) — you may qualify for a meaningfully lower rate; (2) market rates drop significantly vs. your current rate; (3) your income increases and you want to shorten the term and reduce total interest paid; (4) you initially refinanced with a cosigner and want to refinance again solo after cosigner release. Each refinancing involves a hard credit pull and resets your loan term, so verify the math on total interest under both scenarios before refinancing again.
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