How To Refinance Student Loans Without a Degree: Options for Non-Graduates

Around 40% of students who attend college don't earn a degree, according to the National Center for Education Statistics. That leaves many of them facing the prospect of repaying student loans they took out to pay for school without the financial benefits a college education often brings.

“The real student debt problem is situations like this, where the borrower didn't get the boost in income from the degree, but now has to carry the payments,” explains Jack Wang, a wealth adviser specializing in student loan repayment with Innovative Advisory Group.

If you find yourself in this situation, refinancing can sometimes lower the cost of debt payoff — though you must find a lender that offers loans to non-graduates. MEFA is a top option for non-graduates since it offers a wide range of repayment options and doesn't charge fees. But there are also several other great choices available to you.

Current student loan refinance rates

Best student loan refinance lenders for non-graduates

INvestEd: Best for forbearance

MEFA: Best for no degree

RISLA: Best for income-based repayment

Why you can trust us

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 more than 1,700 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, Credible collected more than 1,000 points of data on 16 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: 25%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 20%
• 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.

Can you refinance student loans without a degree?

“Depending on your lender, you may not be able to refinance your student loans as a non-graduate,” explains Domenick D'Andrea, a financial adviser and co-founder of DanDarah Wealth Management. “Some lenders require at least an associate degree to be able to refinance.”

Refinancing involves taking out a new loan to repay existing educational debt. While some lenders don't require a degree to refinance, remember that you'll still need to meet the other eligibility requirements.

“Most college-age students don't have an established credit history, so it can be hard to qualify,” D'Andrea warns.

“Creditors also look at non-graduates as potentially lower wage earners than college graduates,” he adds. “With all of these potential risk factors, it can be hard to refinance, but not impossible to find a lender. It just might take additional research to find the best option.”

Benefits of refinancing student loans as a non-graduate

Refinancing student loans has many benefits, even if you didn't earn a degree and consequently must work harder to find the right lender.

Here are some of the most significant advantages:

• You can change your interest rate: If you qualify for a lower rate, you can make debt payoff cheaper.
• You can change your payment timeline: If you need to extend your repayment term to get smaller monthly payments, you can do that. You can also opt to shorten your term to save money on interest and pay off your loan faster.
• You can simplify repayment: If you refinance multiple loans into a single new loan, you'll only have one student loan payment and deadline to keep track of.

Drawbacks of refinancing loans without a degree

Unfortunately, there are some significant downsides to refinancing your student loans when you didn't graduate with a degree in your field of study. Here are the biggest drawbacks:

• Fewer loan options: Since many lenders require you to have a degree, you'll have more limited choices for a refinance loan. You'll need to shop around more carefully to find the right lender.
• Your interest rate may be higher: Since borrowers with no diploma can be viewed as riskier, and there are fewer lenders to choose from, a lender may charge you more to borrow.
• You could lose federal borrower benefits: If you refinance federal student loans, you will lose all of the borrower protections that come with them, including income-driven repayment plans and loan forgiveness.

How to refinance student loans without a degree

If you want to make it easier to pay off student loans by refinancing, here are the general steps to take:

• Shop around to find a lender: The lenders on this list are a good place to start, as they all offer refinance loans to students without degrees.
• Compare rates and terms: As you explore refinancing, look at interest rates, repayment terms, and total payoff costs to ensure you get the most affordable loan possible.
• Consider applying with a cosigner: If you aren't confident your financial credentials will qualify you for a competitive rate, think about adding a cosigner to your application.
• Gather your documents and apply: You'll need to provide proof of income to your lender, so you may need tax returns or pay stubs. You'll also need to provide personal information like your Social Security number and details about the loans you're refinancing, including loan servicer and loan amount.

Alternatives to refinancing student loans

Refinancing student loans without a degree isn't the right choice for everyone, although it can be a good option in the right circumstances. Some alternatives to consider include:

• Income-driven repayment plans: If you have federal student loans, you can choose a payment plan that sets payments at a percentage of your discretionary income. Once you've made 10 to 25 years of payments (depending on the plan), any remaining loan balance is forgiven.
• Budget to afford loan payments: If you can't change your payment terms, you can adjust your budget to ensure that your current debt load is affordable. This may mean making certain cuts, such as eating out less often. If possible, budget to pay extra so you can eliminate your debt more quickly.
• Explore loan forgiveness programs: You may be able to get some of your debt forgiven through Public Service Loan Forgiveness or other programs if you have federal loans.