You typically need good to excellent credit to qualify for student loan refinancing — which means it might be difficult to get approved if you have bad credit. However, there are a few options that could help you qualify for refinancing even with less-than-perfect credit.
1. Compare lenders
Credit requirements vary between lenders: While you’ll need good to excellent credit to qualify with some, others accept lower credit scores — and some have no minimum required credit score at all. This is why it’s important to compare as many student loan refinance companies as you can to find the right loan for you.
In addition to credit requirements, be sure to consider interest rates, repayment terms, and any fees charged by the lender.
Also keep in mind that while some lenders offer student loan refinancing with bad credit, these loans generally come with higher interest rates compared to good credit loans.
Tip: If you’re struggling to get approved, 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.
Here are Credible’s partner lenders that offer student loan refinancing for bad credit. Keep in mind that while some of these lenders have high required minimum credit scores, you might be able to qualify if you apply with a creditworthy cosigner.
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 — but there’s no way to release your cosigner later.
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
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 offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
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
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
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 is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.
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 an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
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.
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.
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Loan Amounts
$10,000 up to the total amount
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
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
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
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.
Brazos: Best for Texas residents
If you live in Texas and want to refinance your student loans, Brazos might be a good choice. You can refinance $10,000 to $400,000 (depending on your degree) with a repayment term ranging from five to 20 years.
Loan Amount
$10,000 - $400,000
Five loan terms available
Competitive rates
No origination or application fees
Autopay discount of 0.25 percentage points
Only available to Texas residents
No cosigner release
High minimum credit and income requirements
Bachelor’s degree required
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 — but there’s no way to release your cosigner later.
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
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Pros
- 0.25% autopay discount
- No application, origination, or disbursement fees
- Forbearance options available
Cons
- Might be hard to qualify without a cosigner if you have poor credit or low income
- Cosigner release not offered
- Only available in Texas
Citizens: Best for borrowers who didn’t complete their degree
Unlike many other refinancing lenders, Citizens doesn’t require borrowers to have graduated to potentially be eligible for refinancing. Additionally, if you already have an account with Citizens, you might qualify for a rate discount — and you could get another 0.25% off your rate by signing up for autopay.
With Citizens, you can refinance $10,000 to $750,000 (depending on your degree and loan type) with terms from five to 20 years.
Min. Credit Score
Does not disclose
Loan Amount
$10,000 - $750,000
Repayment terms between 5 and 20 years
Can prequalify and check your rates online
Autopay and loyalty discounts
Must make 36 payments before eligible for cosigner release
Must make 12 payments on your loans before you can refinance if you earned an associate degree or didn’t complete your degree
Relatively high loan minimum
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
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.
Pros
- Degree not required
- 0.25% autopay discount
- 0.25% loyalty discount
Cons
- Doesn’t disclose minimum income or credit score requirements
- Must have at least $10,000 in student loans to refinance
- Long cosigner release period (36 months)
ELFI: Best for high loan balances
Unlike many other lenders, Education Loan Finance (ELFI) has no maximum loan limit for refinancing — you’ll just need to have at least $10,000 to refinance.
This could make it a good choice for borrowers who attended graduate or professional programs, such as medical school or law school.
Loan Amount
$10,000 up to total refinance amount
Allows students to refinance parent PLUS loans in their own name
Student loan advisor assigned to each applicant
Transparent credit and income requirements
No application or origination fees
Up to 12 months of financial hardship forbearance available
Must have graduated with at least a bachelor’s degree to qualify
No cosigner release available
No rate discounts offered
Late fees and returned payment fees
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
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.
Pros
- No loan maximum
- Variable rates capped at 9.95% APR
- Up to 12 months of forbearance available to borrowers experiencing financial hardship
Cons
- Cosigner release not offered
- Limited repayment terms available for parent borrowers
- Must have at least $15,000 to refinance
INvestEd: Best for borrowers who might need forbearance options
With INvestEd, you can refinance $5,000 to $250,000 with repayment terms ranging from five to 20 years.
Additionally, INvestEd offers up to 24 months of forbearance during the life of a refinanced loan (one to three months per forbearance) — more than many other lenders. This could be helpful if you experience financial hardship in the future.
Loan Amount
$5,000 - $250,000
No degree is required to refinance
Cosigner release available after just 12 on-time payments
Autopay discount of 0.25 percentage points
Deferment options for school enrollment, military service, or financial hardship
Lower maximum refinance limit than some competitors offer
No prequalification option to view your rates
No refinance options for international students
Can’t transfer parent loan to student
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
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.
Pros
- 0.25% autopay discount
- Up to 24 months of forbearance during the life of the loan (one to three months duration per forbearance)
- Degree not required
Cons
- Long cosigner release period (48 months)
- Might be hard to qualify without a cosigner if you don’t have good credit or income
- Can only refinance up to $250,000, which might not be enough for borrowers with high student loan balances (such as medical debt)
MEFA: Best for borrowers who attended public or nonprofit schools
The Massachusetts Educational Financing Authority (MEFA) offers refinancing on loan amounts starting at $10,000 up to the total amount of your qualified education debt. This could make it a good choice for borrowers who have a high amount of student loan debt.
Keep in mind that MEFA only works with borrowers who attended public or nonprofit schools — loans taken on to attend for-profit schools aren’t eligible.
Loan Amount
$10,000 up to the total amount
No graduation requirement to refinance
No fees whatsoever
Prequalification available
No rate discounts available
No variable interest rates
No cosigner release available
Parent student loans aren’t eligible
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
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.
Pros
- Competitive rates
- Degree not required
- No application, origination, or disbursement fees
Cons
- Might be hard to qualify without a cosigner if you have bad credit
- Cosigner release not offered
- No discounts available
RISLA: Best for borrowers experiencing financial hardship
Private student loans don’t provide the same benefits and protections as federal student loans. However, unlike other private refinancing lenders, the Rhode Island Student Loan Authority (RISLA) offers an income-based repayment (IBR) plan for borrowers experiencing financial hardship.
This IBR plan works similarly to the federal IBR plan — payments are limited to 15% of your discretionary income, and RISLA will forgive any remaining balance after 25 years.
Loan Amount
$7,500 - $250,000
Income-based repayment options for borrowers experiencing financial hardship
Up to 24 months of forbearance
Up to 36 months of graduate school deferment
No degree required to refinance
Rate discounts available
No cosigner release
Limited repayment terms
Minimum $40,000 income required
No variable rates
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
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.
College Ave: Best for a variety of repayment terms
If you refinance your student loans with College Ave, you’ll have 16 loan terms to choose from ranging from five to 20 years. This can make it easier to match your monthly payment to your budget — just keep in mind that it’s usually best to opt for the shortest repayment term you can afford to avoid paying more in interest.
With College Ave, you can refinance $5,000 to $300,000 (depending on your degree).
Pros
- Variety of repayment terms available
- 0.25% autopay discount
- Cosigner release offered after 24 months
Cons
- Doesn’t disclose minimum income and credit score requirements
- Can’t transfer Parent PLUS Loans to child
- Must have graduated to qualify
2. Improve your credit score
Generally, borrowers with higher credit scores qualify for better interest rates compared to those with bad credit.
If you can wait to refinance your student loans, it could be a good idea to spend some time improving your credit score first so you can have an easier time qualifying as well as potentially secure a lower interest rate in the future.
Here are a few ways to build your credit score:
- Pay all your bills on time. Your payment history makes up 35% of your FICO credit score. By keeping up with all of your payments, you can continue to build a positive payment history. Consider setting calendar reminders or setting up autopay for your bills so you won’t miss any of your monthly payments.
- Pay down debt balances. Your credit utilization — or the total amount of outstanding credit you owe — makes up 30% of your FICO score. Paying down debt balances (such as credit cards) can help lower your credit utilization and improve your credit score. Aim to keep your credit utilization below 30%.
- Don’t close old accounts. Closing accounts will impact the length of your credit history, which in turn could lower your credit score. Even if you don’t use some of your accounts that often, it’s a good idea to keep them open so your credit won’t be affected.
- Don’t take out new loans. When you apply for a new loan, the lender will perform a hard credit check. This could cause a slight dip in your credit score — though it’s usually only temporary. If you’re trying to build your credit, only apply for new loans if necessary to avoid dragging your credit score down.
Tip: As you’re working to build your credit, keep tabs on your credit reports to track your progress. You can use a site like AnnualCreditReport.com to review your credit reports for free each year. If you find any errors, be sure to dispute them with the appropriate credit bureaus to potentially boost your credit score.
If you can improve your credit score, you could qualify for a lower interest rate on refinancing in the future. This could help you save money on interest charges and even pay off your loan faster.
Learn More: Private Student Loan Consolidation
3. Apply with a cosigner
A cosigner can be anyone — such as a parent, relative, or trusted friend — who has good credit and is willing to sign onto a loan with you. Having a creditworthy cosigner can make it easier to get approved for refinancing and might also qualify you for a lower interest rate.
Keep in mind: Your cosigner is just as responsible for the loan as you are. If you can’t make payments or make late payments, your credit will be damaged — and so will your cosigner’s.
Before you apply for refinancing, it’s a good idea to talk with your cosigner about the risks involved. Also consider setting up a plan for what to do if you ever have trouble making payments.
If your cosigner qualifies you for a better interest rate, you could save money on interest and potentially pay off your loan ahead of schedule.
FAQ
Here are the answers to a few commonly asked questions regarding student loan refinancing:
Can you refinance student loans with bad credit?
Yes, there are several lenders that offer student loan refinancing to borrowers with bad credit. Every lender has different credit requirements, so be sure to compare as many lenders as possible to find a loan that suits your needs.
Also keep in mind that while it’s possible to refinance student loans with bad credit, you’ll likely get a higher interest rate compared to the rates offered to borrowers with good credit.
Is there a downside to refinancing student loans?
While refinancing can be a good idea in some cases, it isn’t right for everyone. Here are a couple of potential downsides to student loan refinancing to consider:
- Loss of federal protections: While it’s possible to refinance federal student loans, doing so will cost you your federal protections, such as access to student loan forgiveness programs. You’ll also no longer be eligible for the suspension of federal payments and interest accrual under the CARES Act due to the COVID-19 pandemic.
- No repayment flexibility: Unlike federal student loans, private student loans don’t allow borrowers to choose between various repayment options according to their needs. For example, most private lenders don’t offer income-driven repayment plans or graduated repayment plans.
What credit score do you need to refinance?
You’ll generally need good to excellent credit to qualify for refinancing — a good credit score is usually considered to be 700 or higher.
However, keep in mind that credit requirements vary between lenders. While some require borrowers to have good credit, others accept lower credit scores. There are even some lenders that don’t have a minimum credit score at all.
How do I get the lowest student loan refinance rate?
Having good to excellent credit can help you qualify for the lowest refinancing rates available — in general, the higher your score, the lower your interest rate. If you want to get approved for better rates, consider spending some time building your credit first or refinancing with a cosigner.
If you decide to refinance your student loans, remember to compare as many lenders as you can to find the right loan for you.
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, and others. She loves helping people learn to be better with money.
