How To Refinance Student Loans With a Low Income

How you refinance student loans with a low income depends on your loan type and your credit score. If your loans are private, you can compare lenders with lower income requirements or add a cosigner to qualify. However, with federal loans, refinancing means giving up forgiveness programs and income-driven repayment, which could offer lower monthly payments. 

In October 2026, borrowers earning less than $45,000 a year who refinanced through the Credible marketplace received an average fixed interest rate of 7.15% and had an average credit score of 737. If your score is lower, you may see a higher rate or need a cosigner to qualify.

Low-income borrowers can still refinance their student loans. Some lenders have lower minimum income requirements, and this guide has tips to help strengthen your application.

Compare current student loan refinance rates

Can low-income earners refinance student loans?

You can refinance student loans with a low income, but your options may be more limited. Lenders consider your income to determine whether you can afford the new loan, and many set minimum income requirements. 

Income isn’t the only factor. Lenders also look at your credit score and debt-to-income (DTI) ratio. A strong credit history and lower existing debt can improve your chances of qualifying for refinancing, even if your income is on the lower side.

Minimum income requirements can be hard to meet

The federal poverty guidelines help determine what counts as a low income. For 2026, it’s $15,960 for one person and $33,000 for a family of four in most states. Some lender minimums fall near that.

“Refinancing any loan can be hard for low-income earners,” explains Domenick D'Andrea, a financial adviser and co-founder of DanDarah Wealth Management. “Most lenders have minimum income requirements, but this number will vary depending on the lender.” These minimums can be challenging if your income is too low.

Lenders also consider your debt relative to your income. 

“Debt-to-income (DTI) ratio tells the lender if you have the money to pay the loan — that's the critical piece that many people forget,” says Jack Wang, a wealth adviser specializing in student loan repayment with Innovative Advisory Group. 

For example, INvested requires monthly debt payments to stay below 40% to 50% of your gross monthly income, depending on your income level, to qualify for student loan refinancing.

Lenders also consider all your debt, including student loans, auto loans, and credit card balances. The more debt you have, the harder it may be to qualify for refinancing.

D'Andrea says lenders also review your employment history to confirm your income is stable, which can be a problem if you've only recently found work or work as a freelancer.

Your credit history also matters

Income is one key factor private lenders consider when deciding whether you can refinance. Credit is another.

“Credit score tells the lender if you pay your bills on time,” Wang says. Unfortunately, if you have limited income, you may fall behind on payments and end up with a low credit score, which makes qualifying harder.

D'Andrea notes that you usually need a good credit score to refinance. Typically, this means a FICO credit score of at least 670. However, if your credit isn't perfect, shop around, as some lenders are more willing to offer loans than others.

“All of these are guidelines and vary lender to lender, so do your research and find the lender that best matches your need[s],” says D'Andrea.

Student loan refinance lenders for low-income earners

These student loan refinancing lenders offer lower minimum income requirements, flexible terms, or income-based repayment for low-income borrowers:

How to choose a student loan refinance lender if you have a low income

If you're refinancing student loans with a low income, some key features to look for when choosing a private student loan lender include:

• Lower income thresholds.
• Several repayment term options.
• A cosigner release, which allows you to apply with a cosigner and then remove them after you make a certain number of on-time payments.
• Autopay discounts for on-time payments, which can reduce borrowing costs.

Strategies to qualify for refinancing with a low income

You can still refinance even with a limited income. Some options to help your approval chances include:

• Add a cosigner to get approved or better terms: Private student loan lenders often allow you to add a cosigner to your application. A cosigner agrees to share responsibility for your debt. If you can find someone with a higher income and solid credit to cosign, you may get approved with more lenders at better rates.
• Improve your credit score: Since lenders look at both your credit score and income, a higher score makes you a less risky borrower. Lenders may be more willing to overlook your low income for a student loan refinance if you have excellent credit.
• Reduce other debts: Paying down other debts lowers your DTI ratio, which makes qualifying easier.

Should you refinance federal loans on a low income?

Refinancing federal loans into private loans may not be the best choice if you have a low income. Federal loans offer income-based repayment options that most private lenders don’t. They include:

• Repayment Assistance Plan (RAP): Payments are 1% to 10% of your adjusted gross income (AGI), minus $50 a month for each dependent, with a $10 minimum. Any remaining balance is forgiven after 30 years. RAP is the only income-driven plan for loans disbursed on or after July 1, 2026.
• Income-Based Repayment (IBR) Plan: IBR is still available for loans disbursed before July 1, 2026. Your payment is based only on income above 150% of the federal poverty guideline, so low-income earners may owe $0.
• Direct Consolidation Loan: Consolidation combines federal loans into one payment and keeps your federal protections. It has no credit or income requirements.

As of Jan. 1, 2026, forgiveness from an IDR plan will count as federal taxable income, but Public Service Loan Forgiveness (PSLF) remains tax-free.

Pros and cons of refinancing student loans 

Details on the pros

If you can find the right lender for your situation, there are significant benefits to refinancing student loans. These include:

• Lower your monthly payments: Refinancing student loans can lower your monthly payment if you extend your repayment term. A lower monthly payment provides more wiggle room in your budget.
• Reduce your interest rate for long-term savings: You can potentially get a lower interest rate when you refinance, which makes the cost of borrowing cheaper. If you keep your payment the same or choose a shorter term, a lower rate can also help you pay off the loan sooner.
• Make repayment more manageable: Refinancing lets you combine several loans into one monthly payment. If you have federal loans, a Direct Consolidation Loan can also combine them into a single loan while keeping your federal protections.
• Possible cosigner release: Some lenders let you remove a cosigner after a set number of on-time payments. Check each lender’s terms, because not all offer the option.

Details on the cons

There can be some downsides to refinancing as well. Some disadvantages include:

• Lose federal borrower benefits: Federal loan borrowers lose access to income-driven repayment plans, loan deferment and forbearance, and loan forgiveness when refinancing into a new private loan.
• Potentially higher overall costs with longer repayment term: If you extend your payment term when refinancing, you'll pay more in interest and be in debt for longer, making accomplishing other financial goals more challenging.
• Qualifying is harder with a low income: Lenders look at income, credit, and DTI ratio. You may need a cosigner, who is legally responsible for the debt if you don’t pay.
• Hardship options vary by lender: Private lenders set their own forbearance and deferment terms, so compare them before you choose.

How to apply for student loan refinancing with a low income

To apply for a refinance loan with a low income:

• Shop around with different lenders: Check each lender's minimum income and credit score requirements to see if you qualify and to find out which offers the best rates.
• Find a cosigner if possible: If you can find a cosigner with a higher income and strong credit, you'll have a better chance of loan approval.
• Gather your documents: You'll need personal information, financial information, and details about the loans you're refinancing. This means you may need documents like W-2s or pay stubs. You'll also need to provide this information for your cosigner.
• Submit an online application: Once you've chosen a lender, apply for a loan on the lender's website. Be ready with your own details and your cosigner's information.

Tips for managing student loans on a low income

If you have a limited income, there are ways to manage your student loans that don't involve refinancing. These include:

• Budget to allocate funds toward repayment: Create a detailed budget to save money. Prioritize student loan payoff in your budget by making cuts to things like entertainment or eating out.
• Explore income-driven repayment (IDR) plans: If you have federal loans, an IDR plan can lower your payment. These plans limit your monthly payments to a percentage of your discretionary income or adjusted gross income (AGI), depending on the plan. The IDR plan you can use depends on when you borrowed and the loan type.
• Enroll in autopay: Many private lenders offer a 0.25-percentage-point rate discount for signing up for autopay. These savings add up over time, and automatic payments help ensure you never miss a payment. Check your lender's terms.
• Communicate with your lender about financial challenges: Most lenders prefer to offer student loan repayment assistance rather than have you default, so ask your lender what your options are.

Methodology

To determine the best student loan refinance lenders, Credible collected more than 1,000 lender data points and evaluated them across several 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: 25%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 20%
• 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.

Why trust Credible?

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.