Can I Refinance a Student Loan if I Didn't Graduate? 7 Lenders That Say You Can

Nearly 40% of students who attend college end up leaving without a degree, according to a 2024 study by the National Center for Education Statistics. So, you aren't alone. But whether or not you graduate from college, when you take out one or more student loans, you're still responsible for paying them back.

Refinancing those loans without a degree can be challenging, but isn't impossible. While most lenders require borrowers to have graduated to qualify for refinancing, some offer other options for those who didn't finish their degree, provided they meet certain financial criteria, including minimum credit score, income, and employment status, to name a few. Lenders may also require you to have made a certain number of on-time student loan payments before you qualify.

“Many lenders prioritize an applicant's financial profile over their degree status,” says Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators (NASFAA).

Here's everything you need to know about refinancing your student loans when you didn't finish college:

Student loan refinance rates

Best lenders for refinancing student loans with no degree

Refinancing your student loans without a degree can be tricky, but some private loan lenders work with borrowers who didn't finish college. MEFA is specifically known for helping non-college graduates refinance their student loans, but it's not the only lender. Private loan lenders like LendKey and SoFi, for example, don't require a bachelor's degree but do require at least an associate degree to be eligible for refinancing.

These private student loan lenders offer flexible eligibility requirements and competitive rates:

1. Earnest

Earnest has a relatively low minimum credit score of 665 to qualify for refinancing, but they don't accept cosigners. The lender stands out for its flexible repayment options. After six months of on-time payments, you can skip one payment every 12 months without a penalty.

2. ISL Education Lending

When you don't have a college degree but have student loans to refinance, then ISL might be a good fit. Their eligibility requirements include a minimum FICO score of 670 and a debt-to-income ratio (DTI) below 40% with a mortgage or rent payment. If you don't have mortgage or rent payments, your DTI must be below 25%.

3. Brazos

Brazos is a private student loan lender that lets Texas residents who don't have a degree refinance their student loans. You must have at least “one outstanding, fully disbursed education loan,” according to Brazos, and a minimum annual income of $60,000 or apply with a cosigner who does.

4. MEFA

MEFA is one of the best private lenders known for not requiring a college degree to refinance student loans. However, one of their eligibility requirements includes having at least $10,000 in student loan debt to refinance.

5. INvestEd

To qualify for an INvestEd Refi Loan without a degree, you need to be a resident of Indiana or attend an Indiana university. You must also have at least $5,000 in student loans but no more than $250,000 and an annual salary of at least $36,000. Additionally, you or your cosigner must have a minimum credit score of 670. The lender also offers forbearance options.

6. EdvestinU

EdvestinU can help refinance federal and private student loans when you don't graduate from college, provided they aren't in default. If the total amount of your student loan is under $100,000, you or your cosigner must have an income of at least $30,000 a year. For balances over $100,000, you or your cosigner must make at least $50,000 a year.

7. RISLA

As long as you meet RISLA's other eligibility requirements, including having at least $7,500 in student loans, you can refinance without a degree. RISLA is one of the few private lenders offering an income-based repayment plan that helps borrowers manage their student loan debt for a short period of time, as well as forbearance options.

Why you can trust our Credible experts

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 thousands 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 for borrowers who didn't finish college, Credible collected more than 1,000 points of data on two dozen 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: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• 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.

How refinancing can save you money

When you refinance, you're replacing your old student loan(s) with a new one — ideally with a lower interest rate. That means less money paid in interest over the life of the loan. For example, if your original loan balance is $40,000 and your fixed interest rate is 7% over 10 years, you'll pay around $15,800 in interest. But if you refinance that $40,000 loan with a fixed interest rate of 4.5% over 10 years, you'll pay $9,700 in interest. This saves you about $6,000 in interest.

The amount you can save will depend on the loan amount, terms, and the interest rate you and/or your cosigner qualify for. According to Credible marketplace data, private student loan refinance rates in March averaged 7.75% without a cosigner and 7.28% with a cosigner.

Student loan refinance calculator

A student loan refinance calculator is a tool that helps you estimate your new monthly payments, total interest, and potential savings if you refinance your student loans. It compares your current loan terms to new refinancing terms to determine whether it's financially worthwhile. 

Qualifying for student loan refinance

Most lenders require you to have an associate degree or higher to refinance your student loans because they assume a diploma usually translates to a higher earning potential and a lower risk of default. However, refinancing your student loans without a degree is still possible, though it can be harder.

“While the loan balance is typically smaller since you didn't finish, this can be just as much of a hardship as those with six-figure loan balances who did finish,” explains Jack Wang, a wealth adviser and financial aid specialist at Innovative Advisory Group.

The options are more limited, so you'll want to shop around to compare eligibility requirements from different private loan lenders. You also need to have good credit and a steady income. Otherwise, you would need to apply with a cosigner to get approved with possibly a lower interest rate.

Credit score needed to refinance student loans

Private loan lenders typically require a credit score of at least 650 to refinance student loans, but to get the best rates and terms, a score of 720 or higher is usually preferred. Besides your credit score, lenders also consider:

• Income and employment history
• Debt-to-income (DTI) ratio
• Education level
• Loan amount and type (federal vs. private)

If your credit score is on the lower end, adding a cosigner with strong finances can improve your chances of approval and help you get a better rate.

Pros and cons of refinancing student loans without a degree

Pros

• Flexible payment terms: If you have a solid credit score and stable income, refinancing gets you new loan terms. You might be able to choose a repayment term that better fits your budget — shorter for faster payoff, longer for lower payments.
• Single monthly payment: When you refinance, you can combine multiple loans into one, simplifying your finances with a single payment each month.
• Interest rate reductions: With private loans, most lenders offer an interest rate reduction, usually around 0.25%, with autopay, which federal loans don't offer. Some lenders offer other rate reduction opportunities, but you'll need to check with the specific lender.
• Cosigner release: If your original loan had a cosigner, refinancing could release them, as long as you can qualify for refinancing on your own.

Cons

• Fewer lenders to choose from: Many lenders require a college degree to qualify for student loan refinancing, which narrows your choices. You'll want to spend more time comparing lenders to find one willing to work with you. 
• Loss of federal protections: Refinancing federal student loans into a private loan means you lose access to several benefits, including income-driven repayment plans, Public Service Loan Forgiveness (PSLF), temporary relief options like forbearance or deferment, and benefits like potential new forgiveness programs.
• Strict eligibility requirements: “The most important aspects of refinancing without a degree will be someone's income, their income history, and their credit score,” Clifford Cornell, a financial adviser at Bone Fide Wealth, LLC. Without a degree, you might have lower earning potential, making meeting a lender's minimum income requirements harder. Qualifying for a refinance loan is more difficult if your income falls short. Your credit score also plays a major role. While not having a degree doesn't directly impact your credit score, financial struggles that led to dropping out — like missed payments or limited credit history — can make it harder to qualify.
• Higher loan rates: With fewer lenders willing to work with non-graduates, you might face higher interest rates. Lenders may also see a borrower without a degree as a higher risk due to lower earning potential, resulting in higher borrowing costs. If you have bad credit or don't have a steady source of income, you might have to apply with a cosigner if you want to successfully refinance your student loans. Doing so can increase your approval chances and secure a lower interest rate. A creditworthy cosigner can be a parent, relative, or spouse.

How to choose a good student loan refinance offer

Selecting a good student loan refinance offer is all about balancing savings with terms that best meet your needs. Here are some things to consider:

• Interest rate: Consider both fixed and variable rates. Fixed rates offer more predictable payments, while variable rates can start out lower but increase over time.
• Loan terms: Most refinance lenders have 5-, 7-, 10-, 15-, and 20-year repayment terms. A shorter term means a higher monthly payment but less interest charges. A longer term means a lower monthly payment and more interest charges over the life of the loan.
• Fees: Avoid lenders that charge prepayment penalties. Most don't charge origination fees but verify that first with lenders you're considering.
• Repayment flexibility: Find out whether the lender offers forbearance or deferment options. These options allow you to pause payments if you run into financial setbacks. If you're applying with a cosigner, look for cosigner release options.
• Lender reputation: Check customer reviews and lender Trustpilot scores to ensure the lender is right for you.

Alternatives to refinancing student loans when you didn't graduate

When you can't find an affordable refinance loan because you didn't finish college, you have other options to deal with your student loan debt. Here are things you can do:

Income-driven payment plans

If you have federal student loans, refinancing might not be the best option since you'd lose benefits like flexible repayment options and access to loan forgiveness programs. Instead, you could switch to an income-driven repayment plan, which adjusts your payments based on your income. Additionally, any remaining loan balance is forgiven after you make the required number of payments.

Student loan consolidation

You become eligible for consolidation of your federal loans when you leave school or drop below half-time enrollment. A Direct Consolidation Loan lets borrowers merge as many of their eligible federal student loans into a new single loan with one monthly payment and without losing federal benefits, including repayment plans and forgiveness programs. There's also no application fee to consolidate your loans.

A Direct Consolidation Loan can sometimes lower your monthly payment by extending your repayment term to up to 30 years with a Standard or Graduated repayment plan. Keep in mind that a longer repayment term means you'll pay more in interest over time.

If you decide to consolidate, you'll have the option to switch from variable-rate loans (if any) to a fixed interest rate for the life of the loan. The fixed interest rate is calculated as the weighted average of the rates on the consolidated loans, rounded up to the nearest 0.125%.

Budget to manage existing loan payments

If you can't lower your monthly payments through refinancing or other options, try adjusting your budget to accommodate them, including cutting back on discretionary expenses like dining out or entertainment. If that's not enough, consider reducing fixed costs, like moving to a more affordable place to live to free up more room in your budget.

You can also explore ways to increase your income, including taking on a side gig or finding a better-paying job. Some employers even offer student loan repayment assistance as part of their benefits package, so consider looking for job opportunities that offer this perk.

Return to school

When you decide to go back to school, most private loan lenders allow students to put their existing student loans into deferment, but you need to check with your lender to confirm.

For federal student loans, once you're enrolled at least half-time or more at a school eligible for federal student aid, your student loan will automatically trigger in-school deferment, meaning your payments are paused, but interest will still accrue.

What to do if you don't qualify

While qualifying for refinancing as a non-graduate can be more challenging, there are ways to improve your chances:

• Apply with a cosigner: If you have a cosigner with good credit and a stable income, you may have an easier time getting approved and qualifying for a lower interest rate. Lenders may approve your loan based on your cosigner's financial profile since they'll share responsibility for repayment.
• Improve your credit score: A strong credit score makes it easier to get approved. Paying your bills on time, avoiding maxing out credit cards, and maintaining a healthy credit mix can improve your score and show lenders you're a responsible borrower.
• Pay off other debt: Reducing your overall debt improves your debt-to-income ratio and makes you a more attractive borrower. Focus on paying down credit card balances, car loans, or other outstanding debts to improve your financial profile. You can use strategies like the Debt Avalanche Method or the Debt Snowball Method to help you with this.