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Refinancing your student loans could help you save money on interest or even pay off your loans faster. While you typically need good to excellent credit to get approved for refinancing, there are several lenders that are willing to work with borrowers who have bad credit.
Here’s what you should know about the best student loan refinance loans for bad credit and where to find them:
- Best bad and low credit student debt refinance loans in 2022
- Other student loan refinancing lenders to consider
- How to qualify for a refinance loan with bad credit
- How to refinance a student loan
- How to know if refinancing makes sense
- Frequently asked questions
Best bad and low credit student debt refinance loans in 2022
While there are fewer lenders that offer student loan refinancing for bad credit, it’s still important to compare as many of them as possible to find the right loan for your needs.
As you research your options, remember that the best refinance loans for bad credit provide competitive interest rates, a wide selection of loan terms, inclusive eligibility requirements, and responsive customer service.
You’ll also no longer be eligible for CARES Act benefits, including the suspension of federal student loan payments and interest accrual which ends after September 1, 2023, due to the COVID-19 pandemic.
Here are Credible’s partner lenders that offer refinancing for bad or low credit:
| Lender | Fixed rates from (APR) | Variable rates from (APR) | Loan amounts | Min. credit score | Repayment terms (years) |
|---|---|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.08%+3 | 5.28%+3 | $15,000 to $250,000 | 680 | 5, 7, 10, 12, 15, 20 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.9%+4 | 8.12%+4 | $5,000 - $250,000 | 670 | 5, 10, 15, 20 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.94%+ 7 | N/A | Up to $300,000 | 670 | 5, 7, 10, 15, 20 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.75%+ | N/A | $10,000 up to the total amount of qualified education debt | 670 | 7, 10, 15 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.79%+ | N/A | $7,500 up to $250,000 (depending on highest degree earned) | 680 | 5, 10, 15 |
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 8Nelnet Bank Disclosures |
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ELFI
Best for: Large loan balances
Unlike many other lenders, Education Loan Finance (ELFI) has no maximum loan limit — you just need a minimum of $10,000 to be eligible. ELFI loans come with terms ranging from five to 20 years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- No maximum loan limit
- Up to 12 months of forbearance available over the life of the loan
- Variable-rate loans capped at 9.95% APR
Cons
- Must have at least $10,000 in student loans to refinance
- Cosigner release not offered
- 15- and 20-year terms not available for parent loans
Check Out: Private Student Loan Forgiveness Alternatives
INvestEd
Best for: Borrowers who didn’t finish their degree
INvestEd is an Indiana-based lender that offers student loan refinancing to borrowers nationwide. With INvestEd, you can refinance $5,000 to $250,000 with terms from five to 20 years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- Degree not required
- 0.25% automatic payment deduction
- Up to 24 months of forbearance available over the life of the loan
Cons
- Long cosigner release period (48 months)
- Charges late and returned payment fees
- Can only refinance up to $250,000, which might not be enough for borrowers who attended more expensive programs
Learn More: How to Pay Off $100,000+ in Student Loans
ISL Education Lending
Best for: Borrowers who are still attending school
ISL Education Lending offers refinancing for loan amounts from $5,000 to $300,000 ($5,000 to $200,000 for students still in school) with terms ranging from five to 20 years. Unlike several other lenders, ISL Education Lending allows borrowers to refinance while they’re still in school.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- Can refinance while you’re still in school
- Graduated repayment plans offered
- 0.25% autopay discount
Cons
- Variable rates not offered
- Rates can be higher compared to other lenders
- Can only refinance up to $300,000 (up to $200,000 if you’re still in school), which might not be enough for borrowers who attended more expensive programs
Check Out: How to Pay off Student Loans in 5 Years
MEFA
Best for: Borrowers who attended a public or nonprofit university
The Massachusetts Educational Financing Authority (MEFA) offers refinancing on loans starting at $10,000 up to your total amount of qualified education debt. Repayment terms range from seven to 15 years.
Keep in mind that to refinance with MEFA, you must have attended a public or nonprofit university — for-profit schools aren’t eligible.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- Might be able to refinance your total amount of qualified education debt
- No application, origination, or disbursement fees
- Degree not required
Cons
- Not available to borrowers who attended for-profit schools
- Cosigner release not offered
- Limited repayment terms (7, 10, or 15 years)
Learn More: How Often Can You Refinance Student Loans?
PenFed
Best for: Spouses who want to refinance their loans together
With PenFed, you can refinance $7,500 to $300,000 with repayment terms from five to 15 years. PenFed is also the only major lender that allows spouses to refinance their loans together.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- Spouses can refinance their loans together
- Cosigner release offered after just 12 months of consecutive, on-time payments
- Parents can transfer Parent PLUS Loans to their child
Cons
- Bachelor’s degree or higher required
- 20-year term not offered
- Must have at least a 700 credit score to qualify without a cosigner
Check Out: Consolidating Student Loans With Your Spouse
RISLA
Best for: Borrowers who want access to income-based repayment
Private student loan refinancing lenders generally don’t offer the same protections that come with federal student loans. But if you refinance with the Rhode Island Student Loan Authority (RISLA) and find yourself in financial hardship, you can sign up for an income-based repayment IBR) plan similar 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.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Minimum credit score needed to qualify
Range needed to refinance with this lender
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Pros
- Income-based repayment available for borrowers facing financial hardship
- Can defer payments for up to 36 months if you return to graduate school
- 0.25% autopay discount
Cons
- Charges late fees
- Cosigner release not offered
- Can only refinance up to $250,000 (depending on the highest degree you’ve earned), which might not be enough for borrowers who attended more expensive programs
Learn More: Student Loan Consolidation vs. Student Loan Refinancing
Methodology
To find the “best companies,” Credible looked at loan and lender data points from 12 categories to give you a well-rounded perspective on each of our partner refinancing lenders.
Here’s what we considered:
- Interest rates
- Repayment terms
- Repayment options
- Fees
- Discounts
- Customer service availability
- Maximum loan balances
- Willingness to refinance parent loans
- Eligibility criteria
- Cosigner release options
- Whether the minimum credit score is available publicly
- Whether consumers could request rates with a soft credit check
Our hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the refinancing process and a loan is disbursed. Additionally, Credible charges you no fees of any kind to compare your refinancing options.
Other student loan refinancing lenders to consider
Here are more student loan refinancing companies we evaluated. Note that you might need to apply with a cosigner to potentially qualify with these lenders if you have bad credit.
Also keep in mind that these lenders aren’t offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: $500,000 Grad: $500,000 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: $249,000 Grad: $199,000 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: $500,000 Grad: $500,000 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: $249,000 Grad: $249,000 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: None Grad: None |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: $99,000 Grad: $150,000 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: No maximum Grad: No Maximum |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| Undergrad: None Grad: None |
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How to qualify for a refinance loan with bad credit
While qualifying criteria can vary by lender, here are a few common factors they’ll likely consider with your refinancing application:
- Credit score: Many refinancing lenders require borrowers to have good to excellent credit, which usually means a credit score of 700 or higher. There are also lenders that offer student loan refinancing for bad credit — but keep in mind that these loans usually come with higher interest rates compared to good credit loans.
- Verifiable income: Lenders want to see that you’ll be able to afford your future loan payments. Some lenders have a required minimum income while others don’t — but in either case, you’ll likely have to show proof of income.
- Debt-to-income ratio: Your debt-to-income (DTI) ratio is the amount you owe in monthly debt payments compared to your monthly income. Lenders typically prefer borrowers to have a DTI ratio no higher than 50% — though some lenders might require a lower ratio than this.
A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the loan. Just keep in mind that this means your cosigner will be on the hook if you can’t make your payments.
Check Out:
- 13 Best Loans for Refinancing Student Loans Without a Cosigner
- How to Release Your Cosigner in 4 Steps
How to refinance a student loan
If you’re ready to refinance your student loans, follow these four steps:
- Check your credit. When you apply for refinancing, the lender will check your credit to determine your creditworthiness — so it’s a good idea to look at your credit beforehand to see where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.
- Compare lenders and pick a loan option. While every borrower should compare as many lenders as they can to find the right loan for their needs, this is especially important if you have poor or fair credit. By shopping around, you’ll be able to find a loan that suits your needs without being unnecessarily expensive. Be sure to consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements. Afterward, you can choose the loan option that works best for you.
- Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs. The length of this process generally depends on the type of lender you use — for example, you could quickly complete it online with an online lender while a traditional bank or credit union might take a little longer. Be sure to gather all of the necessary information you’ll need beforehand to keep it as fast and painless as possible.
- Manage your payments. If you’re approved, you’ll need to continue making your regular payments on your original student loans while the refinance is processed. This could take up to one to two billing cycles, depending on the lender. Afterward, you could consider signing up for autopay so you won’t miss any student loan payments in the future — many lenders offer a rate discount to borrowers who opt for automatic payments.
Or you could opt to extend your repayment term to reduce your monthly payment and lessen the strain on your budget. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.
You can use our calculator below to see how much you can save by refinancing your student loans.
Step 1. Enter your loan balance
Step 2. Enter current loan information
Step 3. Enter your new loan information to start calculating your savings
If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Learn More: Can You Refinance a Student Loan to a 30-Year Term?
How to know if refinancing makes sense
Refinancing could be a good idea in several situations, but it isn’t right for everyone. Here are a few ways to know if refinancing makes sense for you:
- You can get a lower interest rate. If you qualify for a lower student loan interest rate, you could save hundreds or even thousands of dollars on interest.
- You need a lower monthly payment. If you opt to extend your repayment term through refinancing, you could lower your monthly student loan payment to fit more comfortably in your budget. Just remember that doing this means you’ll pay more in interest over the life of your loan.
- You have multiple student loans. Refinancing lets you consolidate all of your student loans — leaving you with just one loan and payment to manage.
Depending on your situation, refinancing might help you repay your student loans ahead of schedule. You can estimate how long it’ll take to pay off your student loan debt using the calculator below. Use the slider to see how increasing your payments can change the payoff date.
Enter loan information
If you increase your payments by $ monthly on your $ loan at %, you will pay $ a month and pay off your loan by Jan 2021.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Check Out: When to Refinance Student Loans
Frequently asked questions
Here are the answers to several commonly asked questions regarding student loan refinancing for bad credit:
How do you improve your credit score for a student loan?
In general, the better your credit, the easier it is to qualify for refinancing — and the more likely it is that you’ll get a low interest rate. A few ways to potentially improve your credit score for refinancing include:
- Making on-time payments: Your payment history is one of the biggest factors that make up your credit score. If you pay all of your bills on time, you could see a boost in your score.
- Paying down credit card balances: Another major element in your credit score is your credit utilization ratio — this is how much you owe on revolving credit lines (like credit cards) compared to your total credit limits. Paying down credit card balances could help reduce this ratio and improve your credit score.
- Becoming an authorized user: If someone you trust is willing to let you be an authorized user on their credit card account, you can benefit from their good credit and build your credit score over time — without even needing to use the card.
Learn More: Average Student Loan Payment: Estimate How Much You’ll Pay
How have student loans been affected by the Covid-19 pandemic?
This depends on the type of student loans you have.
- Federal student loans: Payments and interest accrual on federal student loans have been suspended by the CARES Act. Payments are scheduled to restart after September 1, 2023.
- Private student loans: Both new and refinanced private loans have remained largely unaffected. Though these loans aren’t eligible for CARES Act benefits, many private lenders are offering various types of assistance to borrowers who have been financially impacted by the pandemic. Be sure to reach out to your lender to see what options might be available to you.
Check Out: Federal Student Loans and COVID-19: What You Need to Know
Can I get a student loan without a cosigner if I have bad or no credit?
Yes, you might still be able to get a student loan without a cosigner if you have poor or no credit. Most federal student loans don’t require a credit history or a cosigner — which means you could still qualify even if you have bad or no credit.
Private student loans, on the other hand, typically require that you have a minimum credit score or that you have a creditworthy cosigner.
Learn More: What Happens When You Default on a Student Loan?
Can you refinance with a 500 credit score?
You generally need good to excellent credit to qualify for refinancing. There are also several lenders that accept poor or fair credit, but you’ll still likely need a credit score of at least 670 or higher.
If you have a lower credit score than this, consider applying with a creditworthy cosigner to improve your chances of approval. Having a cosigner might also help you get a better interest rate.
Check Out: How to Pay Off $30,000 in Student Loans
What do I do if I can’t get approved for a student loan?
If you can’t get approved for a private student loan on your own, there are a couple of options to consider:
- Apply with a cosigner. If you apply with a creditworthy cosigner, you can rely on their good credit to help you get approved more easily. Just remember that a cosigner will share responsibility for the loan with you — which means they’ll be liable if you don’t make your payments.
- Build your credit. You can also work on improving your credit to help you qualify for a loan in the future. Some ways to do this include making all of your payments on time and paying down credit card balances.
Learn More: 4 Credit Unions for Student Loan Refinancing
What is the downside to refinancing student loans?
While refinancing offers several potential benefits, there are also some downsides to keep in mind, including:
- Could be hard to qualify: If you have bad credit, it can be much harder to qualify for refinancing — though keep in mind that having a creditworthy cosigner could make it easier.
- Loss of federal benefits: If you refinance federal student loans, you’ll lose access to federal benefits and protections. For example, you won’t be eligible for federal student loan deferment or forbearance options.
- Lack of repayment options: Private refinanced loans don’t offer federal student loan repayment options. For example, refinancing lenders typically don’t provide income-driven or extended repayment plans.
Check Out: How To Spot 6 Student Loan Forgiveness Scam Warning Signs
Does refinancing hurt your credit?
When you apply for refinancing, the lender will perform a hard credit check to determine your creditworthiness. This can cause a slight dip in your credit score — however, this is usually only temporary, and your score will likely bounce back within a few months.
Additionally, refinancing might actually help your score in the long run. For example, if you make on-time payments on your refinanced loan, you could see an improvement in your score over time.
Ultimately, the potentially positive impacts on your credit score could far outweigh any initially negative effects.
Learn More: How to Pay off Student Loans in 10 Years or Less
Can you get denied a loan with a cosigner?
Yes — if your cosigner doesn’t meet the lender’s underwriting criteria, then the lender might deny you a loan. This is why it’s important to choose your cosigner carefully as you’ll be relying on their credit score and history to help you get approved.
If you decide to refinance your student loans, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy: You can compare your prequalified rates from multiple lenders in just two minutes — without affecting your credit.
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