9 Best Lenders to Refinance Student Loans for Low Income Earners

Student loan refinancing lenders often require borrowers to make a minimum amount of income to be eligible for refinancing — which means your options might be limited if you don’t make very much money. However, there are several lenders willing to work with low-income borrowers.

While there’s no official definition for what low income means, it’s generally understood to be any amount lower than the median household income. In 2020, the median household income in the U.S. was $78,500, according to the U.S. Department of Housing and Urban Development.

If you make less than this, refinancing student loans could be difficult. However, there are several lenders willing to work with low-income borrowers.

Best lenders for refinancing student loans with low income

Some refinancing lenders have much lower income requirements than others. There are even a few that don’t have a minimum income requirement at all.

Here are Credible’s partner lenders that offer student loan refinancing to low-income borrowers:

Brazos

If you’re a Texas resident, Brazos might be a good choice for student loan refinancing. With Brazos, you can refinance $10,000 to $400,000 (depending on your degree). To be eligible, you must have a minimum income of $60,000 (or $30,000 if you apply with a cosigner).

Pros

• Competitive interest rates
• Variety of repayment terms offered
• No application, origination, or disbursement fees

Cons

• Only available to Texas residents
• Cosigner release not offered
• Might be difficult to qualify if you don’t have good credit

Citizens Bank

With Citizens Bank, you can refinance $10,000 to $750,000 (depending on your degree and loan type). This could make it a good option for borrowers who left school with a high amount of student debt.

Pros

• 0.25% autopay discount
• 0.25% loyalty discount
• Degree not required for refinancing

Cons

• Doesn’t disclose minimum credit score requirements
• Long cosigner release period (36 months)
• Must have at least $10,000 to refinance

Citizens Bank

With Citizens Bank, you can refinance $10,000 to $750,000 (depending on your degree and loan type). This could make it a good option for borrowers who left school with a high amount of student debt.

Pros

• 0.25% autopay discount
• 0.25% loyalty discount
• Degree not required for refinancing

Cons

• Doesn’t disclose minimum credit score requirements
• Long cosigner release period (36 months)
• Must have at least $10,000 to refinance

ELFI

Unlike other lenders, ELFI has no maximum limit for student loan refinancing — you’ll just need to have a minimum loan amount of $10,000. This could make it a good option if you have a high student loan balance. To be eligible, you must have a minimum income of $35,000.

Pros

• No maximum loan amount
• Variable rates capped at 9.95% APR
• Up to 12 months of forbearance available to borrowers experiencing financial hardship

Cons

• Cosigner release not offered
• Must have at least $10,000 to refinance
• Fewer repayment options available to parent borrowers

INvestEd

INvestEd offers refinancing on loans from $5,000 to $250,000 with repayment terms from five to 20 years. Additionally, you don’t need to have graduated to potentially qualify with INvestEd — though you’ll need to make at least $36,000 per year.

Pros

• Degree not required
• 0.25% autopay discount
• Up to 24 months of forbearance available over the life of the loan (one to three months duration per forbearance)

Cons

• Long cosigner release period (48 months)
• Might be difficult to qualify if you don’t have good credit
• $250,000 loan maximum, which might not be enough for borrowers with high student loan balances

MEFA

MEFA offers student loan refinancing starting at $10,000 with no set maximum. While you don’t need to have graduated to potentially qualify, you’ll have to make at least $24,000 per year to refinance with MEFA.

Pros

• No maximum loan amount
• Competitive rates
• Degree not required

Cons

• Cosigner release not offered
• Not available to borrowers who attended for-profit schools
• Limited repayment terms available

RISLA

Private student loans generally come with fewer protections than federal student loans. However, with RISLA, borrowers who experience financial hardship can sign up for an income-based repayment (IBR) plan that works similarly to the federal IBR plan.

Under this plan, your payments will be capped at 15% of your discretionary income, and any remaining balance will be forgiven by RISLA after 25 years.

To refinance with RISLA, you’ll need to make at least $40,000 per year.

Pros

• Income-based repayment plan available
• Can defer payments for up to 36 months if you return to graduate school
• 0.25% autopay discount

Cons

• Cosigner release not offered
• Variable rates not available
• $250,000 loan maximum, which might not be enough for borrowers with high student loan balances

Learn More: Best Companies to Refinance Parent PLUS Loans

How to refinance student loans with low income

If you’re ready to refinance your student loans, follow these four steps:

• Research and compare lenders. Be sure to compare as many student loan refinance companies as possible to find the right loan for you. Consider minimum income requirements as well as interest rates, repayment terms, and any fees charged by the lender.
• Pick a loan option. After you’ve compared lenders, pick the loan option that works best for your needs.
• Complete an application. Once you’ve picked a loan, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
• Manage your payments. If you’re approved, make sure to keep up with the payments on your old loan while the refinance is processed. Once your new loan is ready to go, consider signing up for autopay so you won’t miss any payments in the future and can avoid student loan default.

Tip: If you’re struggling to get approved for refinancing because of your income or credit, consider applying with a cosigner. Even if you don’t need a cosigner to qualify, having one could get you a lower rate than you’d get on your own.

Check Out:

• Best Student Refinance Companies for Bad Credit
• How to Refinance Your Student Loans
   

Is it worth it to refinance student loans?

While refinancing can be a good idea for some borrowers, it isn’t the right move for everyone. Here are some situations where refinancing might be worth it:

• You can get a lower interest rate. Depending on your credit, you might be able to lower your student loan interest rate through refinancing. This could save you money on interest charges and help you pay off your loan faster.
• You need to reduce your monthly payments. If you opt for a longer repayment term, you could lower your student loan payments, which might help lessen the strain on your monthly budget. Just keep in mind that choosing a longer repayment term means you’ll pay more in interest over time.
• You have multiple loans to manage. Many borrowers leave school with several loans to deal with. Refinancing lets you consolidate these loans — leaving you with just one loan and one payment to worry about.

And here are some scenarios where you might want to reconsider refinancing:

• You have poor credit. If you have bad credit, you might have a hard time qualifying for refinancing. In this case, it could be a better idea to build your credit before applying.
• You can’t get better terms. If you don’t qualify for a better rate or more favorable terms, then refinancing likely isn’t worth it.
• You have federal student loans. While you can refinance both federal and private student loans, refinancing federal student loans will cost you federal protections — such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, you’ll no longer qualify for the suspension of payments and interest accrual under the CARES Act due to the COVID-19 pandemic.

Ultimately, you’ll have to decide whether refinancing is worth it based on your individual circumstances and financial goals. For example, if refinancing can help you save money and pay off your loans faster, then it might be a good move.

Frequently asked questions about student loan refinancing

Here are the answers to several commonly asked questions regarding student loan refinancing:

What is the minimum income needed to refinance a student loan?

You’ll typically need a minimum income of about $30,000 to qualify for refinancing. However, keep in mind that this varies by lender — some lenders don’t even have a minimum income requirement at all.

Additionally, if you don’t meet a lender’s minimum income requirements, you could consider applying with a cosigner who does.

What credit score do I need to refinance a student loan?

This also varies by lender. In general, you’ll need to have good to excellent credit to qualify for refinancing — a good credit score is usually considered to be 700 or higher. There are also some lenders that offer student loan refinancing for bad credit.

If you have poor credit and can’t get approved for refinancing, applying with a creditworthy cosigner could also improve your chances.

Does refinancing hurt your credit?

If you apply for refinancing, the lender will perform a hard credit check to determine your creditworthiness. This could cause a small dip in your credit score — however, this is usually only temporary, and your score will likely bounce back within a few months.

Plus, if you keep up with your new loan by making on-time payments, you might actually see a boost in your credit score over time.

Will consolidated loans be forgiven?

No — if you consolidate your student loans through a private refinancing lender, you won’t qualify for student loan forgiveness.

If you’re considering private vs. federal student loan consolidation, keep in mind that federal student loans can be consolidated into a federal Direct Consolidation Loan. This type of loan could still be eligible for federal forgiveness programs, such as Public Service Loan Forgiveness.

Methodology: Credible evaluated loan and lender data points in 12 categories to identify some of the “best companies” for refinancing student loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, customer service availability, and maximum loan balances offered by 20 lenders. We also considered each company’s willingness to refinance parent loans, eligibility, cosigner release options, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check.

Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.