Best Lenders To Refinance Student Loans With Low Income Of 2024 – Forbes Advisor – Technologist

Rhode Island Student Loan Authority, or RISLA, is a Rhode Island-based nonprofit that refinances loans for customers across the country. It stands apart for its income-based repayment program, which limits payments to 15% of income for a 25-year period if borrowers can’t afford their payments. That’s an extremely rare perk in the student loan refinance market, as is its 24-month forbearance period. RISLA did not receive a perfect score because it doesn’t provide a co-signer release policy and it charges late fees.

RISLA only offers fixed interest rates.

Loan terms: 5, 10 and 15 years

Loan amounts available: $1,500 to $45,000 per year ($150,000 aggregate per borrower).

Eligibility: Applicants must show a minimum income of $40,000 per year and a minimum credit score of 680. Most undergraduate students will need a co-signer to qualify.

Forbearance options: Forbearance available for up to 24 months.

Co-signer release policy: Available after 24 months of payments. Periods during which borrowers use income-based repayment do not qualify.

SoFi allows borrowers with an associate’s degree to refinance, which opens up eligibility to a wider range of applicants. (We believe the ability to refinance without a bachelor’s degree is an important feature of a refinance loan; seven of the 10 lenders on our list offer it.) Also, it’s one of four lenders on our list that does not place a limit on the amount you can refinance. It’s possible to refinance up to the total balance of your loans, which is helpful for those with a lot of debt from professional degrees.

SoFi’s rates aren’t as low as some other lenders’, and it doesn’t offer co-signer release, which is unusual among our top picks. But as a SoFi customer, you’ll get access to benefits like a 0.125% interest rate discount on certain additional SoFi products, such as personal loans and career coaching.

Loan terms: 5, 7, 10, 15 and 20 years.

Loan amounts available: $5,000 up to total balance of eligible loans.

Eligibility: Associate’s or bachelor’s degree required. Minimum credit score of 650. Does not disclose income requirements.

Forbearance options: SoFi offers an Unemployment Protection Program that allows borrowers to pause payments in three-month increments, for up to 12 months, if laid off from work. A separate forbearance program is also available for borrowers experiencing other types of economic hardship, such as medical expenses. Borrowers can take up to 12 months total forbearance, no matter which program they use.

Co-signer release policy: Available after 24 payments.

*Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20-year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/01/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.

The Massachusetts Educational Financing Authority, known as MEFA, is a nonprofit, state-based agency that offers student loan refinancing to customers across the country. It does not require borrowers to have a degree, so those who did not graduate can refinance. It also doesn’t charge fees, including late fees.

While MEFA does not advertise a specific forbearance limit, the agency says it will work with borrowers to modify their payment plans if necessary due to financial hardship. Since the fixed and variable rates offered are currently the same, your best bet is to pick a fixed-rate loan so you know it won’t increase in the future.

Loan terms: 7, 10 and 15 years

Loan amounts available: $1,500 up to school’s certified cost of attendance less aid.

Eligibility: No degree required. Minimum FICO score of 670 and minimum income of $24,000 for each loan applicant.

Forbearance options: No specific policy except in the case of natural disasters or other extenuating circumstances. Loan modification program available on a case-by-case basis to borrowers who need long-term help.

Co-signer release policy: None

Citizens Bank is one of a few lenders that doesn’t require borrowers to have graduated in order to refinance. It also offers co-signer release after 36 loan payments.

The high end of Citizens Bank student loan refinancing rates is quite high compared with other lenders on our list. But borrowers can qualify for an interest rate discount of up to 0.50% if they have an existing account with the bank. (Refinancing is available nationwide, but checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $10,000 to $300,000 (for those with a bachelor’s degrees or less) or $500,000 (for those with a graduate degree)

Eligibility: No degree required. Borrowers with no degree or an associate’s degree must show that they have made 12 on-time payments after leaving school in order to refinance. Minimum income $24,000 for borrower and co-signer combined.

Forbearance options: Three months of forbearance available at a time up to an undisclosed limit. Borrowers experiencing a long-term financial hardship can participate in a loan modification program for up to 12 months.

Co-signer release policy: Available after 36 on-time payments

Laurel Road, an online-only lender acquired by KeyBank in 2019, offers some perks specific to borrowers who work in health care.

Graduate students and those pursuing bachelor’s degrees in health professions (and, if pursuing an associate’s degree, those in certain health care specialties) can refinance as early as their final semester of school if they have an employment offer. Undergraduates in other fields can refinance after 12 months of employment.

Borrowers also can release their co-signers after 36 monthly payments, and graduates can refinance federal PLUS loans in their own names that their parents took out.

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $5,000 minimum; no maximum, except for associate’s degree graduates, who can refinance up to $50,000.

Eligibility: Must have a degree from an eligible institution. Associate’s degree graduates can refinance if they work in certain health care fields. Laurel Road does not disclose credit score or income requirements.

Forbearance options: Up to 12 months of forbearance available, in three-month increments

Co-signer release policy: After 36 consecutive, on-time payments

Earnest offers several unique features, including the option to make automatic payments twice a month to accelerate repayment and the choice of any repayment term between five and 20 years⁴. It also offers a solid range of hardship repayment options beyond the standard 12 months of forbearance, such as the ability to skip⁵ one monthly bill every year.

Borrowers are able to apply with a co-signer if they don’t qualify for a refinance loan on their own. Earnest reports delinquency to the credit bureaus after the third missed payment cycle.

Loan terms: Choose any term between five and 20 years³. Your options may depend on your financial profile.

Loan amounts available: $5,000 ($10,000 for California residents) to $500,000.

Eligibility: Borrowers must have completed a degree at an eligible nonprofit school and have a minimum credit score of 650. They must also meet other criteria, including having savings of at least two months’ worth of expenses, on-time payment history and no bankruptcies.

Forbearance options: Up to 12 months of forbearance available (after making three consecutive, timely payments toward the loan). Counted towards the forbearance limit, borrowers can also skip one payment every 12 months⁵ (after making six consecutive, timely payments) and get an interest rate and/or term modification in the event of long-term financial hardship.

Co-signer release policy: None

¹Terms and conditions apply. To qualify for this Earnest Bonus offer: 1) you must not currently be an Earnest client, or have received the bonus in the past, 2) you must submit a completed student loan refinancing application through the designated Forbes Advisor link; 3) you must provide a valid email address and a valid checking account number during the application process; and 4) your loan must be fully disbursed.

²Student Loan Refinance Interest Rate Disclosure: Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.44% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.97% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance 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. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

³Auto Pay Disclosure: 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. For multi-party loans, only one party may enroll in Auto Pay.

⁴Student Loan Refinance Loan Cost Examples: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. 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 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.

⁵Skip A Payment Disclosure: Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time 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. Please be aware that a skipped payment does count toward the forbearance limits. 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.

Loan Eligibility Criteria: Your debt is from paying for education at a Title IV accredited school. The debt is from your education or your child’s. The debt you’re refinancing is for a completed degree or one that will be completed at the end of this semester. You are currently the primary borrower on the student loans you would like to refinance, and you will remain the primary borrower after refinancing. You must reside in the District of Columbia or one of the 47 states Earnest Operations LLC is authorized to lend in (all but Delaware, Kentucky, and Nevada). This is strictly a student loan refinance product. There is no opportunity to borrow more than your outstanding qualifying student loan amount. You must be the age of majority in your state or older at the time you apply, as well as be a United States citizen or Permanent Resident Alien without conditions. Refinancing is subject to credit qualifications. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX.

You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.

Lender Identification: Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. or FinWise Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.

PNC Bank offers a particularly generous interest rate discount of 0.50% to borrowers who make monthly payments automatically from a bank account. It also doesn’t require refinance borrowers to have a degree, but you must have made at least 24 months’ worth of payments toward existing student loans to qualify. You must also show two years of income history.

PNC Bank allows co-signers to come off the loan after 48 months of payments, which is longer than what other lenders that provide co-signer release offer.

Loan terms: 5, 10 and 15 years

Loan amounts available: $10,000 to $75,000

Eligibility: Two years of income and employment history required. PNC Bank does not disclose minimum credit score or income requirements.

Forbearance options: Up to 12 months of forbearance available, in two-month increments. Borrowers must make full payments for at least 12 months between forbearance periods.

Co-signer release policy: Available after 48 months of consecutive, on-time payments