Can I Refinance a Student Loan if I Didn't Graduate? These Lenders Say ‘Yes’

Regardless of whether you graduate, when you take out one or more student loans, you're still responsible for paying them back. Refinancing those loans without a degree can be challenging, but it isn't impossible. While most lenders require borrowers to have graduated to be eligible to refinance, some offer other options for those who didn't complete their degree. 

Nearly 40% of students who attend college end up leaving without a degree, according to a 2024 study by the National Center for Education Statistics. So, you aren't alone.

“While the loan balance is typically smaller since you didn't finish, this can be just as much of a hardship as those with six-figure loan balances who did finish,” explains Jack Wang, a wealth adviser and financial aid specialist at Innovative Advisory Group.

Private loan lenders will consider helping borrowers refinance their student loans when they meet certain financial criteria, including their credit score, income, and employment status, to name a few.

Here's everything you need to know about refinancing your student loans if you didn't finish college:

Student loan refinancing requirements

Most lenders require an associate's degree or higher to refinance student loans because a diploma usually translates to a higher earning potential and a lower risk of default. However, refinancing your student loans without a degree is still possible, though it may be more challenging.

The refinance options are more limited, so you'll want to shop around to compare eligibility requirements from different private loan lenders. You'll also need to demonstrate good credit and a steady income. Otherwise, it could be helpful to apply with a cosigner.

Refinancing student loans without a degree

Refinancing your student loans without a degree can be tricky, but some private loan lenders work with borrowers who didn't finish college. MEFA is specifically known for helping non-college graduates refinance their student loans, but it's not the only lender. Private loan lenders like LendKey and SoFi, for example, don't require a bachelor's degree but do require at least an associate's degree to be eligible for refinancing.

These private student loan lenders offer flexible eligibility requirements and competitive rates:

1. ISL Education Lending

When you don't have a college degree but have student loans to refinance, then ISL might be a good fit. Their eligibility requirements include a minimum FICO score of 670 and a debt-to-income ratio (DTI) below 40%, including a mortgage or rent payment. If you don't have mortgage or rent payments, your DTI must be below 25%.

2. Brazos

Brazos is a private student loan lender that lets Texas residents who don't have a degree refinance their student loans. You must have at least “one outstanding, fully disbursed education loan,” according to Brazos, and a minimum annual income of $60,000 or apply with a cosigner who does.

3. MEFA

MEFA is one of the best private lenders known for not requiring a college degree to refinance student loans. However, one of their eligibility requirements includes having at least $10,000 in student loan debt to refinance.

4. INvestEd

To qualify for an INvestEd Refi Loan without a degree, you must have at least $5,000 in student loans but no more than $250,000 and an annual salary of at least $36,000, among other eligibility requirements.

5. EdvestinU

EdvestinU can help refinance federal and private student loans when you don't graduate from college, provided they aren't in default. If the total amount of your student loan is under $100,000, you or your cosigner must have an income of at least $30,000 a year. For balances over $100,000, you or your cosigner must make at least $50,000 a year.

6. RISLA

As long as you meet RISLA's other eligibility requirements, you can refinance your student loans without a degree. The lender does note that your college degree level could affect the maximum amount you can refinance.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan refinance lenders for borrowers who didn't finish college, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

Challenges of student loan refinancing without a degree

There are three main challenges associated with refinancing student loans without a degree.

Fewer lenders to choose from

Many lenders require a college degree to qualify for student loan refinancing, which narrows your choices. You'll want to spend more time comparing lenders to find one willing to work with you. Some of these lenders include INvestEd, MEFA, RISLA, and EdvestinU.

Strict eligibility requirements

“The most important aspects of refinancing without a degree will be someone's income, their income history, and their credit score,” Clifford Cornell, a financial adviser at Bone Fide Wealth, LLC.

Without a degree, you might have lower earning potential, making meeting a lender's minimum income requirements harder. Qualifying for a refinance loan is more difficult if your income falls short.

Your credit score also plays a major role. While not having a degree doesn't directly impact your credit score, financial struggles that led to dropping out — like missed payments or limited credit history — can make it harder to qualify.

Higher loan rates

With fewer lenders willing to work with non-graduates, you might face higher interest rates. Lenders may also see a borrower without a degree as a higher risk due to lower earning potential, resulting in higher borrowing costs.

If you have bad credit or don't have a steady source of income, you might have to apply with a cosigner if you want to successfully refinance your student loans. Doing so can increase your approval chances and secure a lower interest rate. A creditworthy cosigner can be a parent, relative, or spouse.

Alternatives to refinancing your student loans

When you can't find an affordable refinance loan because you didn't finish college, you have other options to deal with your debt. Here are three things you can do.

Explore income-driven payment plans

If you have federal student loans, refinancing might not be the best option since you'd lose benefits like flexible repayment options and access to loan forgiveness programs. Instead, you could switch to an income-driven repayment plan, which adjusts your payments based on your income. Additionally, any remaining loan balance is forgiven after you make the required number of payments.

Merge federal student loans into a Direct Consolidation Loan

You become eligible for consolidation of your federal loans when you leave school or drop below half-time enrollment. A Direct Consolidation Loan lets borrowers merge as many of their eligible federal student loans into a new single loan with one monthly payment and without losing federal benefits, including repayment plans and forgiveness programs. There's also no application fee to consolidate your loans.

A Direct Consolidation Loan can sometimes lower your monthly payment by extending your repayment term to up to 30 years with a Standard or Graduated repayment plan. Keep in mind that a longer repayment term means you'll pay more in interest over time.

If you decide to consolidate, you'll have the option to switch from variable-rate loans (if any) to a fixed interest rate for the life of the loan. The fixed interest rate is calculated as the weighted average of the rates on the consolidated loans, rounded up to the nearest 0.125%.

Budget to manage existing loan payments

If you can't lower your monthly payments through refinancing or other options, try adjusting your budget to accommodate them, including cutting back on discretionary expenses like dining out or entertainment. If that's not enough, consider reducing fixed costs, like moving to a more affordable place to live to free up more room in your budget.

You can also explore ways to increase your income, including taking on a side gig or finding a better-paying job. Some employers even offer student loan repayment assistance as part of their benefits package, so consider looking for job opportunities that offer this perk.

Return to school

When you decide to go back to school, most private loan lenders allow students to put their existing student loans into deferment, but you need to check with your lender to confirm.

For federal student loans, once you're enrolled at least half-time or more at a school eligible for federal student aid, your student loan will automatically trigger in-school deferment, meaning your payments are paused, but interest will still accrue.

Tips for student loan refinancing without a degree

While qualifying for refinancing as a non-graduate can be more challenging, there are ways to improve your chances:

• Apply with a cosigner: If you have a cosigner with good credit and a stable income, you may have an easier time getting approved and qualifying for a lower interest rate. Lenders may approve your loan based on your cosigner's financial profile since they'll share responsibility for repayment.
• Improve your credit score: A strong credit score makes it easier to get approved. Paying your bills on time, avoiding maxing out credit cards, and maintaining a healthy credit mix can improve your score and show lenders you're a responsible borrower.
• Pay off other debt: Reducing your overall debt improves your debt-to-income ratio and makes you a more attractive borrower. Focus on paying down credit card balances, car loans, or other outstanding debts to improve your financial profile.