How to refinance student loans with bad credit

It may be possible to refinance student loans with bad credit if you apply with a cosigner or shop around with multiple lenders.

By Rebecca Safier

Written by

Rebecca Safier

Writer

Rebecca Safier is a finance expert on student loans, personal loans and education. Her byline has been featured by Forbes Advisor, CNN Underscored and U.S. News & World Report.

Updated May 28, 2024, 8:42 PM EDT

Edited by Alicia Hahn

Written by

Alicia Hahn

Writer and editor

Alicia Hahn has spent more than seven years covering personal finance. She is an expert on student loans and credit cards with bylines at the New York Post, NewsBreak, Fox Business, and Yahoo Finance.

Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned indirectly by Fox Corporation. The Fox Money content is created and reviewed independent of Fox News Media. Credible is solely responsible for this content and the services it provides.

If you refinance student loans, you can change the rate and term of your loans, lower your monthly payment, and hopefully save money on interest. The catch? Your credit score plays a big role in whether you qualify.

Experian reports that about 28% of Americans have credit scores in the fair or poor range (a FICO score below 670), which can make it hard to get approved. If you fall into this group, there are steps you can take to boost your chances of approval. Shopping around with multiple lenders and applying with a cosigner, for example, are two approaches that can help.

What credit score do I need to refinance student loans?

Many lenders require a FICO score of 670 or higher to refinance student loans. However, minimum credit score requirements depend on the lender, and some lenders don’t advertise their minimums. A quick way to check if you might qualify is to prequalify first. Prequalification doesn’t hurt your credit score, but it can give you an idea of rates and your eligibility. Keep in mind that prequalification doesn’t guarantee an offer when you apply.

Lenders use your credit score when evaluating your approval for a refinancing loan, and this score also impacts the interest rate you get approved for. To access the lowest rates, you’ll generally need a credit score in the high 700s. But there are ways you can still qualify, even if your score is much lower than that.

Note:

When you apply for a loan, the lender will conduct a hard credit pull, which could drop your score by a few points for up to a year.

Check Out: Do student loans affect my credit score?

How to refinance student loans with bad credit

If you’re struggling to qualify on your own, try the following.

1. Apply with a cosigner

You may have limited options to refinance student loans with bad credit, but one way to change that is by refinancing with a cosigner. A cosigner is someone who shares legal responsibility for the loan. That means a cosigner is liable for payments if you skip out on them. The extra reassurance lowers the risk for lenders, making it easier to get approved.

To qualify, cosigners typically must meet the loan’s eligibility requirements. If your cosigner has a strong credit score, you might even qualify for a favorable rate. Just keep in mind that if you fail to make payments on time or miss them altogether, both your credit score and your cosigner’s will be negatively affected. Many private lenders accept applications with cosigners, including the following:

Lender

Fixed (APR)

Loan Amounts

Min. Credit Score

4.44.4

Fox Money rating

3.85% - 6.90%

$10,000 - $400,000

720

Check Rates

on Credible’s website

View Details

Overview

Brazos offers student loan refinancing exclusively to Texas residents who have earned at least a bachelor's degree from an eligible school. The company does not charge application or origination fees, and its interest rates could be lower than what you find with other private lenders.

However, Brazos has eligibility requirements that some borrowers might find to be difficult to meet. To qualify, borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can't meet those minimums alone, you can add a cosigner who can be released after making 24 consecutive payments.

pros

Offers five loan terms
Competitive rate offerings
Cosigner release after two years
Doesn’t charge application or origination fees
A quarter-point rate discount for using autopay

cons

Must be a Texas resident to qualify
Higher minimum credit and income requirements than many other lenders
Must have earned at least a bachelor’s degree to qualify

Interest rates

Fixed or variable

Minimum credit score

720

Minimum income

$60,000

Loan terms

5, 7, 10, 15, or 20 years

Loan amounts

$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees

Cosigner release

After 24 on-time, consecutive payments

Eligibility

Borrower must be a Texas resident and a U.S. citizen or permanent resident who has at least one outstanding, fully disbursed education loan

3.73.7

Fox Money rating

3.99% - 8.29%

$7,500 - $250,000

680

Check Rates

on Credible’s website

View Details

Overview

Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.

One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.

pros

Offers income-based repayment
Forbearance periods of as long as 24 months available
Graduate school deferment periods as long as 36 months
Can refinance even without a degree

cons

Cosigners cannot be released from loans
Limited range of repayment terms
Must have income of at least $40,000 to qualify
Doesn’t offer variable-rate loans

Interest rates

Fixed

Minimum credit score

680

Minimum income

$40,000

Loan terms

5, 10, or 15 years

Loan amounts

$7,500 minimum up to of $250,000, depending on degree

Cosigner release

None

Eligibility

Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.

4.54.5

Fox Money rating

4.49% - 9.99% ¹

$5,000 up to the full balance

650

Check Rates

on Credible’s website

View Details

Overview

SoFi®, an online lender established in 2011, offers student loan refinancing for undergraduate and graduate borrowers from Title IV schools. They also provide refinancing options for Parent PLUS loans and medical school graduates in residency or fellowship. With five repayment terms, SoFi caters to various budget needs, and you can prequalify with a soft credit pull, which won't impact your credit score. Loans are serviced by MOHELA.

SoFi stands out for its member perks, including no fees, an autopay discount, and a 0.125 percentage point interest rate reduction on additional SoFi loans for existing members.

pros

Rate discounts, financial planning, and travel deals for members
No application, origination, or late payment fees
Autopay rate discount available
You can refinance parent PLUS loans in the student's name

cons

Must have at least $5,000 in loans to refinance
Unable to release cosigners

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

5, 7, 10, 15, or 20 years

Loan amounts

$5,000 up to full outstanding balance

Cosigner release

None

Eligibility

Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.

4.44.4

Fox Money rating

4.88% - 8.44%

$10,000 up to total refinance amount

680

Check Rates

on Credible’s website

View Details

Overview

ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.

ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.

pros

Work with a dedicated Student Loan Advisor
Students can refinance parent loans in their own name
Transparent eligibility criteria
Payment relief options for struggling borrowers

cons

At least a bachelor’s degree required for refinancing
No cosigner release
No autopay rate discount
Fees apply for late or returned payments

Interest rates

Fixed and variable

Minimum credit score

680

Minimum income

$35,000

Loan terms

5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing

Loan amounts

Minimum of $10,000 with no set maximum.

Cosigner release

None

Eligibility

Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.

4.64.6

Fox Money rating

4.89% - 9.44%

$5,000 - $250,000

680

Check Rates

on Credible’s website

View Details

Overview

LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.

Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.

pros

Doesn’t charge origination or application fees
Can refinance with an associate degree
Offers a discount for autopay

cons

Terms vary by the lender you choose
Potentially need to meet membership requirements for certain credit unions or banks

Interest rates

Fixed or variable

Minimum credit score

680

Minimum income

Does not disclose

Loan terms

5, 7, 10, 15, or 20 years

Loan amounts

$5,000 to $250,000

Cosigner release

Varies based on lender's terms

Eligibility

Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.

4.74.7

Fox Money rating

5.89% - 12.10%

$10,000 - $750,000

Does not disclose

Check Rates

on Credible’s website

View Details

Overview

If you have at least $10,000 in student loans to refinance, Citizens may be a good option. The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.

Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.

pros

Offers prequalification to check rates
Discounts for autopay and loyalty
Wide range of repayment terms

cons

Higher minimum loan requirement than some lenders
Cosigner release only available after 36 payments
12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

5, 7, 10, 15, or 20 years

Loan amounts

$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees

Cosigner release

36 months

Eligibility

Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.

3.93.9

Fox Money rating

5.99% - 10.14%

$5,000 - $250,000

670

Check Rates

on Credible’s website

View Details

Overview

INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.

The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.

pros

Don’t need a degree to refinance
Offers rate discount for autopay
Can release cosigner after 12 on-time payments
Various deferment options available

cons

Can’t prequalify before applying
Maximum loan limit is lower than some lenders
Not able to transfer a parent loan to a student
International students aren’t eligible

Interest rates

Fixed or variable

Minimum credit score

670

Minimum income

Does not disclose

Loan terms

5, 10, 15, or 20 years

Loan amounts

$5,000 to $250,000

Cosigner release

12 months

Eligibility

U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.

3.83.8

Fox Money rating

6.00% - 9.99%

$7,500 - $200,000

700

Check Rates

on Credible’s website

View Details

Overview

EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.

The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.

pros

No degree required to qualify and can refinance while still in school
Rate discount of 0.25 percentage points for autopay
New Hampshire residents may qualify for a 1.5 percentage point rate reduction
Can prequalify and see rate offers with no impact on credit score

cons

Not available to borrowers in all states
Higher minimum balances and lower maximum balances than some competitors
Stricter cosigner release requirements than many other lenders

Interest rates

Fixed or variable

Minimum credit score

700

Minimum income

Does not disclose

Loan terms

5, 10, 15, or 20 years

Loan amounts

$7,500 to $200,000

Cosigner release

24 months

Eligibility

U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.