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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.
Here are three ways to refinance student loans with bad 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.
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.
| Lender | Fixed rates from (APR) | Variable rates from (APR) | Loan amounts | Min. credit score | Cosigners allowed |
|---|---|---|---|---|---|
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.
| 4.85%+ | 5.3%+ | $10,000 up to $250,000 (depending on degree) | 720 | Yes |
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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.
| 6.8%+1 | 7.06%+1 | $10,000 to $500,000 (depending on degree and loan type) | Does not disclose | Yes |
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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.
| 6.99%+2 | 6.99%+2 | $5,000 to $300,000 (depending on degree type) | Does not disclose | Yes |
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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.
| 6.0%+5 | 8.03%+5 | $7,500 to $200,000 | 700 | Yes |
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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.
| 5.23%+3 | 5.28%+3 | $10,000 to $250,000 | 680 | Yes |
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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 | Yes |
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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 | Yes |
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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.
| 4.49%+ | 5.02%+ | Up to $300,000 | 700 | Yes |
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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 | Yes |
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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 | Yes |
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| Compare personalized rates from multiple lenders without affecting your credit score. 100% free! |
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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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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.
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
- 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 offers
- Only available in Texas
Citizens Bank: Best for borrowers who didn’t complete their degree
Unlike many other refinancing lenders, Citizens Bank doesn’t require borrowers to have graduated to potentially be eligible for refinancing. Additionally, if you already have an account with Citizens Bank, you might qualify for a rate discount — and you could get another 0.25% off your rate by signing up for autopay.
With Citizens Bank, you can refinance $10,000 to $750,000 (depending on your degree and loan type) 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% 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)
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).
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
- 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
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.
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 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.
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
- 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.
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
- 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
PenFed: Best for spouses who want to combine their loans
With PenFed Credit Union, you can refinance $7,500 to $300,000 with repayment terms ranging 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
- Cosigner release offered after just 12 months of on-time, consecutive payments
- Interest capped on variable-rate loans
- Allows parents to transfer Parent PLUS Loans into their child’s name
Cons
- Must join the credit union to refinance loans
- No discounts available
- Might be hard to qualify without a cosigner if you have bad credit or low income
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.
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
- Can defer payments up to 36 months if you return to graduate school
- Income-based repayment plan available
- Degree not required
Cons
- Cosigner release not offered
- Variable rates not available
- Charges late fees (6% of payment amount)
Check Out:
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 of 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.
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.
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.
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 or getting a lower rate 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:
- 13 Best Loans for Refinancing Student Loans Without a Cosigner
- Should I Refinance Some or All of My Student Loans?
Frequently asked questions about student loan refinancing
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 can 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. Credible makes this easy — you can see your prequalified rates from multiple lenders in two minutes.
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