While studying law could lead to a lucrative legal career, it can also be expensive. The average law student graduates with $130,000 in student loan debt, according to the American Bar Association (ABA). Additionally, many new lawyers end up with lower annual incomes than their total loan balances, which can make it difficult to repay the debt.
Here’s the average law school debt in several categories:
Average law school debt
Here’s a look at the average law school debt and earnings for graduates nationwide, according to data reported by the ABA and the Bureau of Labor Statistics:
- Average law school debt: $108,000
- Average education debt after law school: $130,000
- Median salary with a law school degree: $127,990
- Average salary with a law school degree: $148,030
- Average time to repay law school debt: 20-25 years
Before you attend law school, it’s important to understand the full cost involved so you can make the right decisions with your finances. In general, lawyers graduate with higher student loan debt balances than their incomes, which leads to longer repayment times.
Average law school debt by year
| | Cumulative debt at graduation |
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The chart above shows average total education debt for law school graduates is:
- For the class of 1999-2000: $57,500
- For the class of 2019-2020: $130,000
That’s an increase of 126%, without adjusting for inflation.
Keep in mind that total education debt includes both law school and pre-law debt taken on to earn a bachelor’s degree. Excluding pre-law debt and looking only at loans taken out for law school, average law school debt at graduation averaged:
- For the class of 1999-2000: $51,800
- For the class of 2019-2020: $108,000
That’s an increase of 108%, without adjusting for inflation.
See More: U.S. Student Loan Debt Statistics
Cost to repay law school debt
Law school students take on far more debt than other grad students. The cost to repay law school debt depends primarily on three factors:
- The interest rates on your loans
- How how long it takes you to pay your loans back
- Whether you’ll qualify for loan forgiveness
Tip: One way to potentially reduce your overall repayment costs is through refinancing. If you qualify for a lower interest rate, you could save money on interest charges and even pay off your loans faster.
Keep in mind that while you can refinance both federal and private student loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.
You can use our calculator below to see how much you could save by refinancing your student loans.
Average interest rates on law school loans
If you’re taking federal student loans for pre-law and law degrees, there are three interest rate tiers — one for undergraduates, one for graduate students, and one for PLUS loans. Many lawyers have all three types of loans by the time they graduate from law school.
Based on average student loan interest rates in recent years, a typical law school graduate would have the following loan balances and interest rates:
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Direct Subsidized and Unsubsidized Loans
(for undergrad students) | | |
Direct Unsubsidized Loans
(for graduate students) | | |
Direct PLUS loans
(for graduate and professional students) | | |
[*] Averages based on federal interest rates from 2006-22. |
Typical loan balances and interest rates for law school grads
Graduate and professional students are allowed to take out a lifetime total of $138,500 in Direct Subsidized and Unsubsidized Loans. Keep in mind that the annual borrowing limit for grad students on these more affordable loans is $20,500.
What this means is that students earning a law degree in three years will be able to borrow no more than $61,500 in Direct Unsubsidized Loans for grad students. After this, law students will need to consider costlier Grad PLUS Loans or private student loans to cover their unmet funding needs.
Tip: If you’re wondering how competitive your loan is, the loan score tool below can help. Just enter your APR, credit score, monthly payment, and remaining balance (estimates are fine) to see how your loan stacks up.
Check out: Best Law School Loans
Percentage of grads passing the bar
Graduating from law school is only one hurdle on the path to becoming a lawyer. New law school graduates must also pass the bar exam in the state where they’d like to practice law in order to start their careers.
The bar is a notoriously difficult exam, but the good news is 79.86% of first-time bar exam takers passed it in 2021, according to the American Bar Association.
Unfortunately, taking the bar exam could also add to your debt. The exam itself can cost anywhere from $100 to $1,300 or more, according to JD Advising. Additionally, many exam takers will need to pay for a prep course that could cost upward of $4,000, as well as the cost of lodging for the multi-day exam.
Tip: Law school graduates who fail the bar on their first try have the option to take the test again. In some cases, the cost to retake the bar exam is lower than the first-time fee. However, you might end up paying a higher fee if you are already licensed and need to take the bar to practice in another state.
If you need help paying for the bar exam and its associated expense, a bar exam loan could be a good option. This is a type of personal loan specifically designated to help cover bar exam costs.
Before taking out a bar exam loan, it’s important to consider as many lenders as possible so you can find the right loan for you. Here are a couple of Credible’s partner lenders that offer bar exam loans:
Lenders that offer bar exam loans | | |
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| $1,000 - $16,000
($225,000 aggregate loan limit) | |
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Average time to repay law school loans
The repayment period for your law school loans will depend on a number of factors, including your choice of repayment plan, income, and whether you’ll qualify for Public Service Loan Forgiveness as a government or nonprofit worker.
For law school grads, the average time to repay student loans after graduation is:
- Public Service Loan Forgiveness (PSLF): 10 years
- Standard repayment plan: 10 years
- Income-driven repayment (REPAYE): 17 years
The table below illustrates how your repayment plan impacts the time you’ll spend paying off the average law school debt of $130,000 with a weighted interest rate of 5.23%. You can also see how some borrowers might save more money and pay their loans off faster by refinancing their loans.
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REPAYE with Public Service Loan Forgiveness[*] | $304 to $397 (first, last) | | $41,860 ($125,361 forgiven) |
REPAYE without Public Service Loan Forgiveness[*] | $314 to $707 (first, last) | | $146,147 ($52,977 forgiven) |
Standard 10-year repayment plan | | | |
Refinance into 10-year loan at 4.25% | | | |
[*]Assumes an average income of $56,900 (the median entry-level salary for public defenders in 2022) and that the borrower is unmarried. |
Average earnings with a law school degree
While graduating with six-figure education debt isn’t ideal, many lawyers are able to earn a high annual salary that’s nearly equal to their total debt. According to the latest figures from the Bureau of Labor Statistics, lawyers earned the following in 2021:
- Median: $127,990
- Average: $148,030
Earnings with a law school degree
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Management of companies and enterprises | |
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The chart above highlights that lawyers who work for state and local governments can expect to earn less than the average law school graduate. Working for the federal government can provide a more generous salary.
Landing a job with a law firm as a provider of legal services, or as a member of a company or enterprise legal staff, often provides the biggest paycheck.
Law school debt and earnings by school
The amount of student debt you take on and the salary you can expect post-graduation can both be impacted by which law school you attend. In general, the most prestigious universities have the highest price tags.
However, starting a legal career after graduating from a highly respected alma mater can often command a higher salary that makes it possible to repay the higher debt.
Schools that are less selective, on the other hand, can leave graduates deeply in debt and without a clear path to a six-figure income.
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Columbia University in the City of New York | | | |
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University of California-Berkeley | | | |
University of Michigan-Ann Arbor | | | |
The University of Texas at Austin | | | |
University of California-Los Angeles | | | |
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University of California-Hastings College of Law | | | |
George Washington University | | | |
Loyola Marymount University | | | |
South Texas College of Law Houston | | | |
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Western Michigan University-Thomas M. Cooley Law School | | | |
Florida Coastal School of Law | | | |
The 20 largest law schools by number of degrees granted, ranked by recent graduates' debt-to-income ratio. The lower the ratio, the more manageable the debt. Median debt figures are for 2016-2017. Income is for 2015-2016 graduates. Some schools that do not report data excluded. Source: U.S. Department of Education. |
Students who take on debt that doesn’t exceed their annual earnings will have the easiest time repaying their loans. The chart above shows that among the nation’s 20 biggest law schools, the average debt-to-annual-income ratio can be much higher than the ideal of one or less.
Average debt-to-income ratio at the nation's largest law schools
Law school vs. other graduate programs
While studying law can lead to a fulfilling career for many, it’s not your only option for graduate studies. If you’re considering other career options, it’s important to consider how much other programs cost. Here’s how law school debt stacks up against other degree types:
| Average student loan debt |
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Masters of Business Administration (MBA) | |
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How to pay off law school debt
Some lawyers may be able to land a high-paying job right out of law school that will easily allow them to pay off their student loan debt. But that isn’t the case for all new lawyers, especially those who choose a career in public service.
If your debt-to-income ratio is high, you might wonder how you will ever be able to pay off your law school debt. Thankfully, there are a few options available that could help you more easily manage your debt.
1. Qualify for loan forgiveness
Pursuing PSLF could be a good idea for federal student loan borrowers who plan to work as public defenders or prosecutors or to work for nonprofit organizations that provide legal services to underserved communities.
Under this program, you could have your loans forgiven after working for an eligible employer and making qualifying payments for 10 years.
Tip: There are also several other law school loan forgiveness and assistance programs available that could help you get some or all of your loans forgiven.
2. Choose a repayment plan
In addition to the 10-year standard repayment plan, there are also several federal student loan repayment options available, including:
- Graduated repayment plan: On this plan, your payments will start low and increase every two years. This could be helpful if you expect your income to rise over time.
- Extended repayment plan: This type of plan lets you extend your repayment term up to 25 years, which could reduce your monthly payments. You can choose between a standard extended repayment plan with fixed payments or a graduated repayment plan that starts with lower payments that gradually increase. Also keep in mind that you’ll pay more in interest over time by extending your repayment term.
- Income-driven repayment plan: With this kind of plan, your payments are based on your income — typically 10% to 20% of your discretionary income. Additionally, any remaining balance could be forgiven after 20 to 25 years, depending on the plan you choose.
If you’re wondering how long it’ll take to pay off your student loans, enter your current loan information into the calculator below to find out. Use the slider to see how increasing your payments can change the payoff date.
3. Refinance law school debt
In some cases, it might be a good idea to refinance your law school debt — however, this isn’t the right choice for everyone. If you’re thinking about refinancing your loans, here are some possible benefits to keep in mind:
- Might get a lower interest rate: Depending on your credit, you might qualify for a lower interest rate through refinancing. This could save you money on interest and even help you pay off your loans faster.
- Could reduce your payments: If you opt to extend your repayment term through refinancing, you could lower your monthly payments and lessen the strain on your budget. Just remember that this also means you’ll pay more in interest over time.
- Can combine multiple student loans: It can be difficult to keep track of multiple student loans with different payments and interest rates. Through refinancing, you can combine your loans — leaving you with just one loan and payment to manage. You also have the option to refinance all or just some of your loan balance.
And here are a few drawbacks to think about:
- Loss of federal benefits: If you refinance federal student loans, you’ll no longer have access to federal benefits or protections — including income-driven repayment plans and student loan forgiveness programs.
- Lack of repayment options: Private refinanced loans don’t offer the variety of repayment options that come with federal student loans. For example, you generally won’t be able to sign up for an income-driven or extended repayment plan.
- Fewer options for poor or fair credit: Most law school loan refinance companies require borrowers to have good to excellent credit to be eligible for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans usually come with higher interest rates compared to good credit loans.
Tip: If you’re struggling to get approved for refinancing, consider applying with a cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
If you decide to refinance your law school loans, remember to consider as many lenders as you can to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
Advertiser DisclosureOverview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner that can be released after 24 on-time consecutive payments.
pros
- Five loan terms available
- Competitive rates
- Cosigner release
- No origination or application fees
- Autopay discount of 0.25 percentage points
cons
- Only available to Texas residents
- High minimum credit and income requirements
- Bachelor’s degree required
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
Yes, after 24 on-time payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit based in Indiana that offers student loan refinancing to borrowers nationwide. It offers competitive rates and a discount for setting up autopay. INvestEd also allows cosigners to be released after 12 on-time payments, which is sooner than some other student loan refinancing lenders.
However, the most you can refinance through INvestEd is $250,000, less than what other lenders may allow. It also has strict credit and income requirements to qualify, or you'll need an eligible cosigner. INvestEd clearly defines its credit requirements before you apply, but you can't prequalify with a soft credit check.
pros
- Refinancing available even for non-degree holders
- Offers a one-quarter percentage point rate discount for autopay
- Deferment available while in school, military service or under financial hardship
- Will release cosigners after as few as 12 payments
cons
- Relatively low maximum refinance amount compared with some competitors
- Doesn’t offer prequalification to see rates before you apply
- No refinancing available for international students
- Parent loans cannot be refinanced in student’s name
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit lender offering student loan refinancing to borrowers across the U.S. You can refinance even if you didn't complete your degree, as long as you have at least $7,500 in student loan debt.
What makes RISLA unique is the flexibility it offers borrowers. If you're facing financial difficulties, RISLA provides income-based repayment options to help manage your payments. For added relief, you can access up to 24 months of forbearance, which is more than many lenders offer. If you return to graduate school, you can defer your payments for up to three years, giving you time to focus on your studies without worrying about loan payments.
pros
- Offers income-based repayment
- Generous payment relief options
- You can refinance without a degree
- Get a rate discount when you enroll in autopay
cons
- High minimum income requirement
- No cosigner release option
- Fewer repayment terms to choose from
- Does not offer variable rates
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Overview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner that can be released after 24 on-time consecutive payments.
pros
- Five loan terms available
- Competitive rates
- Cosigner release
- No origination or application fees
- Autopay discount of 0.25 percentage points
cons
- Only available to Texas residents
- High minimum credit and income requirements
- Bachelor’s degree required
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
Yes, after 24 on-time payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Loan Amounts
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is a nonprofit based in Indiana that offers student loan refinancing to borrowers nationwide. It offers competitive rates and a discount for setting up autopay. INvestEd also allows cosigners to be released after 12 on-time payments, which is sooner than some other student loan refinancing lenders.
However, the most you can refinance through INvestEd is $250,000, less than what other lenders may allow. It also has strict credit and income requirements to qualify, or you'll need an eligible cosigner. INvestEd clearly defines its credit requirements before you apply, but you can't prequalify with a soft credit check.
pros
- Refinancing available even for non-degree holders
- Offers a one-quarter percentage point rate discount for autopay
- Deferment available while in school, military service or under financial hardship
- Will release cosigners after as few as 12 payments
cons
- Relatively low maximum refinance amount compared with some competitors
- Doesn’t offer prequalification to see rates before you apply
- No refinancing available for international students
- Parent loans cannot be refinanced in student’s name
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
Loan Amounts
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit lender offering student loan refinancing to borrowers across the U.S. You can refinance even if you didn't complete your degree, as long as you have at least $7,500 in student loan debt.
What makes RISLA unique is the flexibility it offers borrowers. If you're facing financial difficulties, RISLA provides income-based repayment options to help manage your payments. For added relief, you can access up to 24 months of forbearance, which is more than many lenders offer. If you return to graduate school, you can defer your payments for up to three years, giving you time to focus on your studies without worrying about loan payments.
pros
- Offers income-based repayment
- Generous payment relief options
- You can refinance without a degree
- Get a rate discount when you enroll in autopay
cons
- High minimum income requirement
- No cosigner release option
- Fewer repayment terms to choose from
- Does not offer variable rates
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
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Matt Carter contributed to the reporting of this article.
Meet the expert:
Emily Guy Birken
Emily Guy Birken is an authority on student loans and personal finance. Her work has been featured by Forbes, USA Today, Fox Business, MSN Money, and MarketWatch.
