How to Refinance Student Loans If You Didn’t Finish College: 5 Best Lenders

Nearly 40% of students who attend college end up leaving without a degree, according to a study by the National Center for Education Statistics. If you take out student loans and walk away without a diploma, you're still responsible for repaying them.

“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.

Even so, you may still have options to lower your loan costs through refinancing. Here's what you need to know about refinancing student loans if you didn't finish college.

Current student loan refinance rates

Can I refinance student loans if I didn't finish college?

Most lenders require an associate's degree or higher to refinance student loans. This is because earning a diploma usually translates to a higher earning potential and a lower risk of default.

However, refinancing student loans without a degree is still possible, though it may be more challenging. Your options are more limited, and you'll need to shop around and compare eligibility requirements for different lenders. You'll also need to demonstrate that you have good credit and a steady income.

Best refinance lenders for non-graduates

Refinancing student loans without a degree can be challenging, but some lenders are willing to work with borrowers who didn't finish college. The lenders below offer flexible eligibility requirements and competitive rates:

EdvestinU: Best nonprofit lender

RISLA: Best for income-driven repayment

MEFA: Best for no degree

INvestEd: Best for forbearance

Brazos: Best for Texas residents

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 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 need to spend more time comparing lenders to find one willing to work with you. Some of these lenders include INvestEd, MEFA, RISLA, and EdvestinU.

Stricter 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 it harder to meet a lender's minimum income requirements. If your income falls short, qualifying for a refinance loan won't be possible.

Your credit score also plays a major role. While not having a degree doesn't directly impact your credit, financial struggles that led to dropping out — such as 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, which can result in higher borrowing costs.

How to qualify for 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 well-qualified cosigner with good credit and a stable income, you may have an easier time getting approved. 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, making you a more attractive borrower. Focus on paying down credit card balances, car loans, or other outstanding debts to improve your financial profile.

Alternatives to refinancing student loans

If 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.

Consolidate federal student loans

A Direct Consolidation Loan combines multiple federal student loans into one monthly payment without losing federal borrower benefits. While it won't necessarily lower your interest rate, it simplifies repayment by consolidating multiple payments into one.

You can also extend your repayment term as long as 30 years to reduce your monthly payment. Keep in mind, though, that a longer repayment term means you'll pay more in interest over time.

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.

Try cutting back on discretionary expenses like dining out or entertainment. If that's not enough, consider reducing fixed costs, such as 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, like 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.