If you have been sitting on student loan debt for a few years, 2026 is probably the most consequential year you will face for deciding what to do with it. Not because rates have collapsed — they haven’t — but because the federal repayment system you have been comparing against just changed permanently.
On July 1, 2026, the One Big Beautiful Bill Act (Public Law 119-21) took effect. SAVE is gone. PAYE and ICR are closing. The new Repayment Assistance Plan (RAP) and Tiered Standard Plan are now the only two options for anyone who borrows a new federal loan going forward. For roughly 7.5 million borrowers who were parked in SAVE forbearance, servicer notices are going out right now with a 90-day window to pick a new plan.
That matters for refinancing because refinancing has always been a trade: you give up federal protections in exchange for a lower rate. If the federal protections you were holding onto just got less generous, the math on that trade shifts. This guide walks through exactly how to refinance, what rates look like as of late July 2026, and which lenders actually make sense for your situation.
What Does It Mean to Refinance a Student Loan?
Refinancing means a private lender pays off your existing student loans and issues you one new loan in their place, at a new interest rate and a new term.
That’s it. There is no government program involved. Whether you refinance a federal Direct Loan, a private loan from Sallie Mae, or six loans from four different servicers, the result is the same: one private loan, one payment, one rate based on your current credit and income rather than the rate you got as a 19-year-old.
The critical distinction people miss is refinancing versus consolidation. A federal Direct Consolidation Loan keeps you inside the federal system — your rate becomes a weighted average of your old rates, and you keep access to income-driven repayment and Public Service Loan Forgiveness. Refinancing moves you out of the federal system permanently. There is no undo button. Once your federal loans are refinanced privately, PSLF, RAP, deferment, forbearance, and any future forgiveness program are off the table forever.
Student Loan Refinance Rates as of July 2026
Rates have been remarkably flat through the first half of 2026 as the Fed held steady. Here is where the major lenders stand right now.
| Lender / Platform | Fixed APR Range | Variable APR Range | Terms | Minimum Loan |
|---|---|---|---|---|
| Credible (marketplace) | From 3.64% | From 3.63% | 5–20 yrs | Varies by lender |
| Earnest | 3.94% – 9.99% | 5.88% – 9.99% | 5–20 yrs | $5,000 |
| SoFi | 3.99% – 9.99% | 5.74% – 9.99% | 5, 7, 10, 15, 20 yrs | $5,000 |
| Splash Financial | 3.99% – 10.24% | 4.74% – 10.24% | 5–25 yrs | $5,000 |
| LendKey (credit union network) | From 3.98% | From 4.19% | 5, 7, 10, 15, 20 yrs | $5,000 |
| Navy Federal Credit Union | 4.45% – 9.99% (w/ autopay) | 5.88% – 9.99% (w/ autopay) | 5, 10, 15 yrs | $7,500 |
| America’s Christian CU | From 2.89% | From 2.91% | Varies | Varies |
Rates current as of the week of July 22-26, 2026. All lowest rates assume the 0.25% autopay discount and the shortest available term, and are reserved for the most creditworthy applicants.
For context on what you are refinancing away from: federal rates for the 2026-27 academic year are 6.52% for undergraduate Direct Loans, 8.07% for graduate unsubsidized loans, and 9.07% for PLUS loans. If you are carrying PLUS debt at 9%, the gap between what you are paying and what private lenders will offer you is the widest it has been in years.
How to Refinance Student Loans for a Lower Interest Rate: The Actual Steps
The mechanics are straightforward and the whole process usually takes two to four weeks.
Step one: pull your credit report and know your score. Most refinance lenders want a score in the mid-600s at minimum, with the best pricing going to 700+. If you’re at 620, spend three months fixing that before applying rather than collecting denials.
Step two: total up your loans and separate federal from private. Log into StudentAid.gov for the federal side. Refinancing private loans carries almost no downside. Refinancing federal loans is where you need to think hard.
Step three: prequalify with at least four lenders. This is the step people skip and it costs them thousands. Prequalification uses a soft credit pull — no score impact — and rate spreads between lenders for the same borrower routinely run a full percentage point or more. Use both a marketplace and a couple of direct applications.
Step four: pick your term deliberately, not by default. A five-year term gets you the lowest advertised rate but the highest payment. A 20-year term feels comfortable and can quietly cost you more in total interest than the loan you’re replacing. Compare total cost, not just monthly payment.
Step five: submit the full application. You’ll need photo ID, recent pay stubs or tax returns, and current payoff statements from every servicer.
Step six: keep paying your old loans until you see a zero balance. Payoffs take a few weeks to land. Missed payments during the gap hit your credit for no reason.
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How to Refinance Student Loans With SoFi
SoFi has refinanced over $50 billion in student loans and is the default first stop for a lot of borrowers. Fixed rates start at 3.99% APR with all discounts applied, with terms of 5, 7, 10, 15, and 20 years and a $5,000 minimum.
The eligibility bar is genuinely high. There’s no officially published minimum credit score, but applicants below 700 are rarely approved on their own. You need U.S. citizenship or permanent residency (or a qualifying cosigner), an associate’s degree or higher from a Title IV accredited school, and steady income or a job starting within 90 days.
Where SoFi stands out: unemployment protection pausing payments up to 12 months in three-month increments, a SmartStart option letting recent grads make interest-only payments for nine months, and a dedicated medical and dental resident program with payments as low as $100 during residency. The notable weakness is no cosigner release on loans disbursed after May 1, 2019 — if you sign with a cosigner, they’re on it for the duration.
How to Refinance Student Loans With Earnest
Earnest is the lender to look at if your credit score doesn’t tell your whole financial story. Fixed rates run 3.94% to 9.99%, variable 5.88% to 9.99%.
The minimum credit score is 650 for standard refinancing and 665 for Parent PLUS refinancing — but Earnest underwrites on far more than the score. It looks at whether you have two months of savings in the bank, whether you’re current on rent or mortgage, your employment stability, and your debt-to-income ratio. Carrying heavy credit card balances can sink your application even with a decent score.
Two features are genuinely unusual. Earnest is one of very few lenders that will refinance for borrowers who never finished their degree, though that path requires a 700+ score. And it offers a rate-match guarantee plus the ability to skip one payment per year without penalty. Earnest does not operate in Mississippi, and variable-rate loans are unavailable in eight states including Texas, Ohio, and Illinois.
How to Refinance Student Loans With Navy Federal
Navy Federal serves military members, veterans, DoD civilians, and their families. Refinance rates start at 4.45% fixed and 5.88% variable with the autopay discount, across 5-, 10-, and 15-year terms.
You’ll need $24,000 in annual income to qualify alone, or as little as $1,200 with a creditworthy cosigner. You must have graduated from an eligible Title IV school, and you must be a Navy Federal member — though you can join during the application. Refinance caps run to $250,000 for both undergraduate and graduate debt through the LendKey-powered platform.
The standout feature is the parent refinance loan: parents can consolidate loans taken for multiple children, and unlike almost every competitor, they can refinance before the student has graduated. Cosigner release is available after 12 consecutive on-time payments, which is fast. The honest downside is that Navy Federal’s starting rates aren’t market-leading, and the three-term structure gives you less flexibility than SoFi or Earnest.
LendKey Student Loan Refinance: The Credit Union Route
LendKey isn’t a lender — it’s a platform connecting borrowers to a network of credit unions and community banks, including Navy Federal, 1st Advantage, Capital CU, Commonwealth, and Merrimack Valley. Because these institutions are member-owned and nonprofit, their pricing is often quieter but sharper than the big online lenders.
Recent movement illustrates the point: several LendKey partner credit unions frequently adjust rates based on market conditions. Minimums are $5,000 in most states ($6,000 in Massachusetts, $10,001 in Arizona, $50,001 in Connecticut), there are no origination fees, cosigner release is available after 12 payments, and forbearance can run up to 18 months on longer terms. Customer service is the recurring complaint — slow email response and limited hours.
How to Refinance Sallie Mae Student Loans
This one needs a direct answer: Sallie Mae does not offer refinancing. It suspended its consolidation program in 2008 and has never brought a refinance product back. Sallie Mae originates new private student loans for current students and services them, full stop.
You absolutely can refinance loans you took out from Sallie Mae — you just do it through a different lender. SoFi, Earnest, ELFI, Splash, and the LendKey credit unions all accept Sallie Mae loans. One thing to check first: if your Sallie Mae loan was taken out before 2014, it may actually be a federal FFEL loan now serviced by Navient. Confirm with your servicer, because refinancing a federal loan means losing federal protections that a private Sallie Mae loan never had.
How to Refinance Private Student Loans
If everything you owe is private, refinancing is close to a no-brainer decision — the only question is whether you can get a better rate. Private loans have never had access to income-driven repayment, PSLF, or federal forbearance, so there is nothing to forfeit. You’re comparing rate to rate and term to term.
Look for lenders whose current rates beat your existing rate by at least 0.75 to 1 percentage point to make the paperwork worthwhile. If your original loan came with a cosigner and you’ve since built your own credit and income, refinancing solo is the cleanest way to release them.
How to Refinance Student Loans With Bad Credit
A low score narrows your options but doesn’t close the door. Most lenders want mid-600s or better, and below roughly 620 you’ll face either denials or rates high enough to defeat the purpose.
Three realistic paths:
Apply with a lender that underwrites holistically. Earnest is the clearest example — strong savings, on-time housing payments, and stable employment can offset a 650-ish score.
Add a cosigner. Credible marketplace data showed roughly 80% of cosigned refinance applications were approved in 2024, versus far lower rates for thin-credit solo applicants.
Wait and build. Six to twelve months of on-time payments, credit utilization pushed under 30%, and no new credit applications can move a score enough to change your pricing tier materially. If your federal loans are the problem, RAP or the Tiered Standard Plan will hold your payments down in the meantime — and refinancing later isn’t a door that closes.
For borrowers with private loans already in default or charge-off status, Yrefy is one of the few lenders that works specifically in that space.
How to Refinance Student Loans With a Cosigner — and Without One
With a cosigner: your cosigner’s credit and income are evaluated alongside yours, which can both win approval and cut your rate. They are equally legally liable — a missed payment damages their credit too. Before signing, confirm the cosigner release policy. Navy Federal and most LendKey partners release after 12 on-time payments. SoFi offers no release at all on recent loans, meaning the only way to remove a cosigner is refinancing again later.
Without a cosigner: you’ll generally need a score of 680 to 700+, verifiable stable income, and a debt-to-income ratio comfortably under 50%. Most established borrowers three or more years into their careers can clear this. If you’re close but not quite there, prequalify solo anyway — the soft pull costs you nothing and tells you exactly where you stand.
Refinancing vs. Staying Federal: Running the 2026 Numbers
Here’s a $70,000 balance at different rates and terms, so you can see what actually moves the needle.
| Scenario | Rate | Term | Monthly Payment | Total Repaid |
|---|---|---|---|---|
| Federal undergrad rate | 6.52% | 10 yrs | $796 | $95,520 |
| Refinance, moderate | 5.50% | 10 yrs | $759 | $91,080 |
| Refinance, strong credit | 4.50% | 10 yrs | $725 | $87,000 |
| Refinance, aggressive payoff | 4.50% | 5 yrs | $1,305 | $78,300 |
| Refinance, lower payment | 5.50% | 15 yrs | $572 | $102,960 |
| Refinance, longest term | 5.50% | 20 yrs | $482 | $115,680 |
Notice the bottom two rows. Refinancing at a lower rate but stretching to 20 years costs about $20,000 more than doing nothing. Lower rate does not automatically mean lower cost.
For comparison, RAP sets payments at 1% to 10% of adjusted gross income — rising a percentage point per additional $10,000 of AGI — with a $10 minimum, a $50 reduction per dependent, unpaid interest waived monthly, a $50 principal match, and forgiveness after 30 years. The Tiered Standard Plan is fixed: 10 years under $25,000, 15 years for $25,000-$49,999, 20 years for $50,000-$99,999, and 25 years at $100,000 or more, with no forgiveness at the end.
What Is Not a Good Reason to Refinance
Some reasons look sensible and aren’t.
Refinancing federal loans while you’re on a PSLF track. If you’re seven years into a ten-year forgiveness timeline at a qualifying nonprofit or government employer, refinancing throws away everything you’ve earned toward it.
Chasing a lower monthly payment by extending the term. As the table above shows, this can cost you five figures.
Refinancing federal loans when your income or job is unstable. Federal deferment and forbearance are real safety nets. Private lenders offer some hardship options — SoFi’s 12-month unemployment protection is among the better ones — but they’re discretionary and far more limited.
Refinancing to hit a marketing bonus. Cash-back offers of $500 to $1,500 are real, but a rate half a point worse than a competitor’s wipes out that bonus in under two years.
Refinancing before you’ve compared at least four lenders. This is the most expensive mistake and the easiest to avoid.
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The 2026 Timing Question
If your first federal loan was disbursed before July 1, 2026 and you take on no new federal debt, you keep access to IBR and the legacy plan lineup — and IBR’s partial financial hardship requirement has actually been eliminated, expanding eligibility. Sitting tight is a legitimate choice.
If you’re a Parent PLUS borrower who didn’t consolidate before June 30, 2026, income-driven repayment is permanently unavailable to you. Your only federal option is the Tiered Standard Plan, and PLUS loans currently carry 9.07% rates. This is the single group for whom refinancing now makes the clearest mathematical sense.
If you were on SAVE, don’t let the 90-day window auto-enroll you into a plan you didn’t pick. Compare your RAP estimate against a private refinance quote before the clock runs out.
FAQs
Is it hard to refinance a student loan?
The application itself is easy — most lenders take under 15 minutes and prequalification is a soft credit pull with no score impact. Qualifying is the harder part. You generally need a credit score in the mid-600s or above, verifiable stable income, a debt-to-income ratio under 50%, and a completed degree from a Title IV accredited school. Borrowers three or more years into a career with clean payment history are usually approved without much trouble. If your score is below 650 or your income is thin, expect to need a cosigner or a holistic underwriter like Earnest. Roughly 80% of cosigned applications get approved, which tells you the cosigner route works.
How much would a $70,000 student loan be monthly?
It depends entirely on rate and term. At the current 6.52% federal undergraduate rate over 10 years, you’d pay about $796 per month and roughly $95,500 total. Refinance that to 5.50% over 10 years and it’s about $759 per month, or $91,000 total. At 4.50% over 10 years, about $725 per month. Stretch it to 15 years at 5.50% and the payment drops to about $572, but total repayment climbs to roughly $103,000 — about $12,000 more than the 10-year version. If you can handle a five-year term at 4.50%, the payment jumps to about $1,305 but total cost falls to roughly $78,300. The lesson: shorter terms cost more monthly and far less overall.
What is not a good reason to refinance a student loan?
The worst reason is refinancing federal loans while you’re pursuing Public Service Loan Forgiveness — you permanently forfeit every qualifying payment you’ve made. Close behind is refinancing purely to lower your monthly payment by extending the term, which frequently increases total interest by thousands. Also poor reasons: refinancing when your job or income is unstable, since you’d be trading federal deferment and forbearance for much thinner private hardship options; refinancing to capture a cash-back bonus while accepting a worse rate; and refinancing after quoting only one lender, since rate spreads between lenders for the same borrower routinely exceed a full percentage point.
What disqualifies you from refinancing?
Common disqualifiers include a credit score below roughly 620, no degree from a Title IV accredited institution (though Earnest makes exceptions at 700+ scores), insufficient or unverifiable income, a debt-to-income ratio above about 50%, recent bankruptcy or delinquency, and lack of U.S. citizenship or permanent residency without a qualifying cosigner. Loan type matters too: loans for exam prep courses like the LSAT, MCAT, GMAT, or GRE aren’t eligible with most lenders, and loans for a student still actively enrolled can’t be refinanced. Balances below the lender minimum — typically $5,000 — are also excluded, and some lenders don’t operate in every state.
How long will it take to pay off $100,000 in student loans?
Under the standard 10-year federal schedule at about 6.5%, you’d pay roughly $1,136 per month and be done in a decade, having repaid about $136,300. Refinance to 4.50% over 10 years and the payment drops to about $1,036 with total repayment near $124,400 — a saving of roughly $12,000. Stretching to 15 years at 6.5% drops the payment to about $871 but pushes total cost to roughly $157,000. Under the new Tiered Standard Plan, a $100,000 balance is assigned a 25-year term automatically. RAP runs 30 years before forgiveness. So depending on the path you choose, the same $100,000 takes anywhere from five to thirty years — and the total you repay can vary by more than $50,000.
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