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How To Refinance Student Loans Without a Degree

It’s possible to refinance your student loans without a degree as long as you show you can make your loan payments. But there may be fewer options.

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By Erin Gobler

Written by

Erin Gobler

Freelance writer, Credible

Erin Gobler has covered personal finance for more than 10 years, with expertise on mortgages, student loans, and credit cards. Erin's work has been featured by Fox, USA Today, Business Insider, GOBankingRates, Newsweek Vault, and CNN.

Edited by Kelly Larsen

Written by

Kelly Larsen

Writer and editor

Kelly Larsen is an student loans editor at Credible and has spent more than 10 years covering personal finance with expertise on mortgages and debt management. Her work has been featured at Fox Money, Auto Trends Magazine, and Buy Side from WSJ.

Updated December 19, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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Credible takeaways

  • You can refinance your student loans without a degree as long as you can demonstrate an ability to repay your loans.
  • Even without a degree, refinancing can help you get a lower interest rate and monthly payment.
  • Not all lenders offer refinancing to borrowers without degrees, and those that do may charge higher interest rates.
  • Proceed with caution before refinancing your federal loans since you'll lose out on certain benefits, including income-driven repayment and loan forgiveness.
  • Working on improving your overall financial health can boost your credit score and help you qualify for better refinance terms.

Refinancing your student loans can be a great way to lower your interest rate or monthly payment to better fit your budget. The process is a bit more challenging if you don't have your degree, whether it's because you're still in school or because you've decided to follow a different path. But it's not impossible.

In this guide, learn how to refinance your student loans without a degree, as well as some of the benefits and challenges that come with it.

Can you refinance student loans without a degree?

The short answer is yes, it's possible to refinance your student loans without a degree. When you apply for a loan, a lender evaluates your overall ability to repay the loan, not only whether you earned your degree.

“If you've been able to build a strong financial profile, that can outweigh not having a degree,” says Dr. JoNataye Prather, an education strategist and financial literacy expert who goes by Dr. J.

While the eligibility requirements for student loan refinancing vary from lender to lender, you'll generally need good credit, a low debt-to-income ratio, and a stable monthly income.

Some lenders may also have specific requirements for borrowers without degrees. For example, PNC Bank requires borrowers who haven't earned at least an associate degree to have a minimum of 24 consecutive on-time payments on a student loan within the past two years.

Current student loan refinance rates

Benefits of refinancing student loans as a non-graduate

“The benefits of refinancing student loans are the same for borrowers who do and do not have a degree,” says Mark Kantrowitz, author of five books on scholarships and financial aid.

Student loan refinancing often offers borrowers the ability to lower their interest rates, which can result in both monthly and long-term savings. You're especially likely to land a good interest rate if you (or your cosigner) have good credit.

Another perk of refinancing student loans is the ability to consolidate your loans. Keeping track of multiple loans with varying interest rates and payments can be overwhelming. When you refinance, you can combine multiple loans into one to simplify your repayment.

Kantrowitz adds that refinancing can be useful in helping you to reach other financial goals.

“They may be able to get a longer repayment term, which may yield a lower monthly loan payment, which can yield a lower debt-to-income ratio, which can help them qualify for other debt, such as a mortgage,” says Kantrowitz.

Challenges of refinancing without a degree

While refinancing student loans without a degree has some major benefits, borrowers may also face challenges.

First, not all lenders offer refinance loans for borrowers without a degree. Some lenders require at least an associate degree to refinance, while others require a bachelor's degree. Though it's possible to refinance without a degree, finding the right lender might take a bit more digging.

Another challenge, according to Prather, is the likelihood of getting a higher interest rate than you might qualify for if you had a degree.

“As a non-degree holder, the biggest challenge is typically the lender's reluctance to approve you for the best rates,” says Prather “Refinancing lenders may view non-degree holders as higher-risk borrowers, so you may be offered a higher interest rate than someone with a degree. It's essential to shop around for the best deal.”

Finally, refinancing without a degree presents the same challenges as refinancing with a degree, which is that you'll need good credit and an income that meets or exceeds a lender's minimum requirement to qualify. Many lenders prefer a FICO credit score of at least 670. And unfortunately, borrowers without a degree have the debt, but often without the increased income the degree provides.

How to refinance student loans without a degree

The steps for refinancing your student loans don't differ much depending on whether you have a degree. Here's a general step-by-step guide to help you through the process:

  1. Gather your loan information: Before applying for a refinance loan, start by gathering information about your current loan (or loans). This will help you decide how much you need to borrow and what interest rate you'll need to make refinancing worth it.
  2. Shop around for lenders: Not all lenders offer refinancing to borrowers without degrees, so you'll have to review each one's requirements to find those that do. Make sure to pay attention to other eligibility requirements, such as credit score, income, and minimum loan amount. Once you've narrowed down your list to a handful of lenders, get rate quotes from each one to find the best deal.
  3. Gather your documents: When you're ready to apply for a loan, gather all of the documents you may need, including your current loan statements, proof of income and/or employment (such as a recent pay stub), and government-issued identification.
  4. Complete the application: Once you're ready, you can complete your online application. You'll provide information about your current loans, your desired refinance loan, and other aspects of your personal finances to help the lender make a decision. Depending on your situation, you could get a decision right away, but it could also take a few days for the lender to review your application.
  5. Consider a cosigner: If your credit or income isn't up to par to get the best loan terms, consider applying with a cosigner with good-to-excellent credit. You could improve your chances of qualifying or landing a better interest rate.
  6. Continue making your loan payments: Even if your refinance loan is approved, it could take a while for the new loan to process and pay off your existing loan. Until the loan payoff is complete, keep making payments on your original loan to avoid a late payment on your credit report.

 

Tips for managing student loans without a degree

“Managing student loans without a degree can feel overwhelming, but there are steps you can take,” says Dr. Sonia Lewis, chief executive officer of The Student Loan Doctor LLC. “You can contact your loan servicer to explore repayment options, like income-driven plans that adjust payments based on your income.”

Income-driven repayment plans are generally only available for federal loans, and Lewis recommends caution before refinancing these loans.

“Refinancing federal loans means losing benefits like income-driven repayment plans and forgiveness options, so it's important to weigh the trade-offs carefully,” says Lewis.

Another key step in managing your student loans is caring for your overall financial health. Create and stick to a monthly budget to ensure you're able to make your loan payments and meet your other financial obligations. Additionally, work on improving your credit score, which could help you qualify to refinance with better terms in the future.

Finally, communicate with your student loan lender. If you ever find yourself in a situation where you can't make your payments, it's better to be proactive about letting your lender know and asking about deferment or forbearance options. This could help you avoid delinquency or loan default.

FAQ

Which lenders refinance student loans for non-graduates?

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Can I refinance federal loans without a degree?

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How does my credit score affect refinancing eligibility?

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Is refinancing worth it for non-graduates?

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Can a cosigner help me refinance without a degree?

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Meet the expert:
Erin Gobler

Erin Gobler has covered personal finance for more than 10 years, with expertise on mortgages, student loans, and credit cards. Erin's work has been featured by Fox, USA Today, Business Insider, GOBankingRates, Newsweek Vault, and CNN.