Best Banks That Refinance Student Loans for October 2025

by Alex Hillsberg , MA

Student Finance & Loan Expert

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Banks that refinance student loans might provide enhanced personalized customer service to student loan refinance borrowers. This article discusses student loan refinancing, which involves replacing your current loans with a new one from a private lender. This process can potentially reduce your interest rate and make repayment easier by consolidating multiple loans into a single one. It is beneficial for individuals looking to save money or simplify their student loan management. 

Key Findings About Banks That Refinance Student Loans

• Fixed interest rates for banks that refinance student loans generally start around 5.24% APR.
• Variable interest rates for refinancing can begin at approximately 5.28% APR but may fluctuate over time.
• Strong credit scores, typically above 650, are crucial for qualifying for the best refinancing rates.
• Refinancing can simplify repayment by combining multiple loans into one.
• Refinancing federal student loans with a bank forfeits federal loan benefits such as income-driven repayment and loan forgiveness programs.

Table of Contents

1. List of the Best Banks That Refinance Student Loans for October 2025
2. What are the current interest rates for refinancing student loans with banks?
3. What are the eligibility requirements for refinancing with these banks?
4. What are the pros and cons of refinancing student loans with a bank?
5. How can I determine if bank refinancing is the right choice for me?
6. How does your profession influence refinancing terms?
7. Are there alternatives to refinancing student loans with a bank?
8. Does My Credit Score Impact My Student Loan Refinancing Options?
9. What are the tax implications of refinancing my student loans?
10. Are there any hidden fees in refinancing my student loans?
11. How can refinancing student loans support my long-term financial strategy?
12. What are the risks of refinancing my student loans with a bank?
13. How do current economic trends influence my student loan refinancing outcomes?
14. What options exist for young borrowers in the refinancing landscape?
15. What questions should I ask my lender before refinancing?
16. How can refinancing savings be used for further education?
17. How do loan terms like repayment periods affect my interest rate?
18. What happens to my federal loan benefits if I refinance?
19. What steps are involved in refinancing student loans with a bank?
20. Other Things You Should About Banks That Refinance Student Loans

List of the Best Banks That Refinance Student Loans for October 2025

1. LendKey

With LendKey, refinancing your student loans can help you lower your interest rate, decrease your monthly payments, and save thousands over the life of your loan. Since 2009, credit unions and banks have collaborated with LendKey to help borrowers by providing various loan options through their digital platform. Their mission is to enhance lives by making lending simple.

• Minimum Credit Score: 660
• Fixed Annual Percentage Rate (APR): 5.24 to 9.60% 
• Variable APR: 5.53 to 8.70%

2. SoFi

SoFi's Parent PLUS Loan refinancing aims to secure a lower interest rate than that charged by the federal government. This refinancing option can potentially reduce your interest rate, allowing you to either lower your monthly payments or pay off the loan faster, potentially reducing the total interest paid over the loan's lifetime. Additionally, Parent PLUS refinancing enables you to consolidate Federal Parent PLUS and private education loans into a single, convenient payment.

• Minimum Credit Score: 650
• Fixed APR: 5.24 to 9.90% 
• Variable APR: 6.24 to 9.99%

3. Laurel Road

Laurel Road will settle your student loans with your current lenders and give you instructions for setting up servicing for your new loan. Your first payment to Laurel Road will be due one month after the disbursement date.

• Minimum Credit Score: 660
• Fixed APR: 5.44 to 9.75% 
• Variable APR: 5.49 to 9.95%

4. PNC

The PNC Education Refinance Loan is tailored for refinancing student loans. Whether you seek the convenience of a single monthly payment or want to save money over the life of your loans, PNC can assist you.

• Minimum Credit Score: At least two years of satisfactory credit history
• Fixed APR: 6.99 to 16.39% 
• Variable APR: 7.89 to 17.39%

5. Education Loan Finance

Education Loan Finance, a program offered by Tennessee-based SouthEast Bank since 2015, provides private student loans and refinancing options for both private and federal student loans.

• Minimum Credit Score: 680
• Fixed APR: 5.48 to 8.69% 
• Variable APR: 5.28 to 8.99%

What are the current interest rates for refinancing student loans with banks?

With the current trend on student debt, refinancing can be a viable option. However, it is important to consider this option’s interest rates. 

Interest rates for refinancing student loans with banks can vary depending on a number of factors, including:

• Your credit score: Borrowers with strong credit scores will typically qualify for the lowest interest rates.
• The type of loan: Fixed-rate loans typically have slightly higher interest rates than variable-rate loans.
• The loan term: Shorter loan terms will generally come with lower interest rates than longer terms.

That said, here is a general idea of the current interest rates for refinancing student loans with banks for 2025:

• Fixed interest rates: You can expect to see fixed rates starting around 5.24% APR.
• Variable interest rates: Variable rates can be lower than fixed rates, but they can also fluctuate over time. Currently, they start around 5.28% APR.

The table below shows a summary of the current APRs.

What are the eligibility requirements for refinancing with these banks?

Here are the common eligibility criteria most banks that refinance student loans consider:

• Credit score: A strong credit score (typically above 650) is usually required for the best rates and loan approval.
• Income and employment history: You will need to show proof of steady income and employment to demonstrate your ability to repay the loan.
• Debt-to-income ratio (DTI): A low DTI (ratio of your monthly debt payments to your gross monthly income) is favorable for approval.
• Loan amount and type: Banks may have minimum and maximum loan amounts they refinance, and they might only refinance certain types of student loans (federal vs. private).
• Citizenship and residency status: Some banks may have requirements regarding citizenship or residency status.

What are the pros and cons of refinancing student loans with a bank?

With the effects of the expensive education in the United States, many turn to refinancing. This extends the repayment period, which can mean paying more interest overall, even with a lower rate. However, refinancing also comes with various advantages and disadvantages that should be carefully considered before making a decision. Understanding these pros and cons will help you determine whether refinancing your student loans with a bank aligns with your financial goals and circumstances.

Pros

• Potentially lower interest rate: This can save you money on interest payments over the life of the loan.
• Simpler repayment: Combine multiple loans into one for easier management.
• Potentially lower monthly payment: You might be able to extend the loan term to lower the monthly payment.
• Fixed interest rate options: Predictable payments with a fixed-rate loan.

Cons

• Loss of federal benefits: You give up federal loan benefits like income-driven repayment plans and loan forgiveness programs.
• No qualification for future federal benefits: If you have not yet used all your federal benefits, refinancing eliminates them for the future.
• Stricter eligibility requirements: Banks typically require strong credit scores and steady income for approval.
• Potential fees: Origination fees and other charges can add to your overall loan cost.

How can I determine if bank refinancing is the right choice for me?

Student loan debt in the United States currently amounts to $1.753 trillion. With such a significant financial burden affecting millions of borrowers, finding ways to manage and potentially reduce this debt is crucial. 

Banks that refinance student loans are one option that can offer benefits like lower interest rates and simplified repayment plans. Consider the following to decide if bank refinancing for student loans is the right choice for you:

• Your current interest rate: If your current interest rate is significantly higher than what you can qualify for through refinancing, it might be a good option.
• Your financial goals: Do you prioritize lower monthly payments or paying off the loan faster? Refinancing can shorten or lengthen the loan term impacting your monthly payment and total interest paid.
• Your creditworthiness: Do you have a strong credit score and steady income to qualify for the best rates from banks?
• Your desire for federal benefits: Are federal benefits like income-driven repayment or loan forgiveness important to you? Refinancing with a bank eliminates these options.

Here are some steps to take:

1. Check your credit score and get a free credit report. A strong score increases your chances of approval and qualifies you for better rates.
2. Gather information about your current student loans. This includes the interest rate, loan amount, and remaining student loan repayment term.
3. Shop around and compare rates from multiple private lenders and banks that refinance student loans.
4. Run the numbers using a refinancing calculator. This will help you estimate the potential savings from refinancing and see if it fits your financial goals.
5. Carefully consider if you might need federal benefits in the future. Refinancing eliminates them as an option.

How does your profession influence refinancing terms?

Certain professions, particularly those requiring advanced degrees like dentistry or medicine, can significantly influence refinancing terms offered by banks. This effect is primarily attributed to career paths with higher earning potential and lower overall risk of loan default, making borrowers in these fields more desirable to lenders.

For example, dentists often have high student debt but also enjoy robust earning prospects upon graduation. Many banks consider these factors when crafting refinancing offers, leading to competitive interest rates and favorable repayment terms tailored to borrowers in high-income fields. If you're considering refinancing as a dental professional, you may find specialized private loan products designed to address the unique needs of your career, such as a tailored private loan for dental school. This customization ensures that your financial planning aligns with a career trajectory known for its financial stability.

Banks that refinance student loans typically weigh earning potential heavily when assessing applications. This means that borrowers with degrees in lucrative fields may have access to lower rates, even with significant amounts of student debt. Thus, if you're in a profession with strong income prospects, it's worth exploring whether your specific career could unlock better refinancing opportunities.

Are there alternatives to refinancing student loans with a bank?

While refinancing student loans with banks often provides lower interest rates and consolidated payments, it's not always the best or only option for borrowers. For instance, part-time students who need flexible payment options may benefit from exploring alternative solutions. Federal loan programs, income-driven repayment plans, or part-time student loans might align better with their financial needs.

Borrowers pursuing part-time education often face unique challenges, such as reduced eligibility for federal aid and fluctuating income due to part-time or gig work. In such cases, refinancing with a bank may not account for these irregularities. Resources like those offered under specific part-time student loan programs could better support these students by providing more tailored repayment structures.

Additionally, borrowers should assess when they can access other financial aid options. For example, when do part time student loans open? Understanding the answer to that is key to planning effectively and avoiding high-interest private borrowing. By evaluating all available alternatives and consulting with financial experts, part-time students or those with special circumstances can make better-informed decisions that alleviate financial strain without sacrificing long-term benefits.

Does My Credit Score Impact My Student Loan Refinancing Options?

Banks evaluating refinancing applications closely assess your credit score as a critical factor in determining interest rates and loan terms. A strong credit history can unlock more favorable refinancing offers and improve access to competitive APRs, while a lower score may limit options or require additional documentation. In some instances, borrowers exploring tailored products, such as private nursing student loans, may see their credit profile influencing eligibility and rate adjustments across lenders. It is advisable to review your credit report and address discrepancies before initiating a refinancing process.

What are the tax implications of refinancing my student loans?

Refinancing your student loans with a bank may influence your eligibility for claiming student loan interest deductions. Federal student loans typically allow qualified borrowers to deduct a portion of the interest paid each year; however, once refinanced, the loan must still meet Internal Revenue Service guidelines to retain this benefit. Borrowers should assess whether the refinanced agreement maintains the criteria for a qualified student loan under current tax laws. Consulting with a tax professional can provide clear insights into potential changes in your tax situation, including how any associated fees might impact your overall savings. For additional financial planning resources, consider exploring regionally accredited online schools.

Are there any hidden fees in refinancing my student loans?

Some banks may include additional fees that can inflate the overall cost of refinancing. Borrowers should verify whether origination fees, application charges, or prepayment penalties apply before committing to a lender. Evaluating these fee structures side by side can safeguard against unexpected expenses that undermine long-term savings. In addition, carefully reviewing official disclosures and lender agreements ensures that every cost is clearly outlined. For a broader financial strategy, consider exploring alternatives that may offer other economic advantages, such as pursuing 2 year degrees that make 100k.

How can refinancing student loans support my long-term financial strategy?

Evaluating your refinancing options within the context of broader financial goals is essential. Aligning refinancing decisions with long-term plans—such as building savings, investing for retirement, or preparing for potential career shifts—can enhance overall financial stability. Consider how adjustments in monthly cash flow can support other financial objectives or enable further professional development. For instance, reallocating funds saved through a lower interest rate might allow you to pursue additional certifications or enroll in trade school programs, thereby potentially increasing your future earning capacity. Integrating refinancing into a comprehensive financial plan helps mitigate risks and improves financial resilience over time.

What are the risks of refinancing my student loans with a bank?

Refinancing with a bank can offer attractive rates and streamlined payments, yet it comes with potential risks. One primary concern is the forfeiture of federal loan benefits, which include income-driven repayment options and loan forgiveness programs. Variable interest rates may also introduce uncertainty, as future rate increases could offset current savings. Additionally, borrowers may face hidden fees, stricter credit criteria, or unforeseen adjustments in repayment terms. It is essential to evaluate these factors to determine whether converting federal protections for potentially lower rates aligns with your long-term financial strategy. For a broader perspective on how educational choices can influence financial planning, consider exploring our guide What associate degree is the fastest to get?

How do current economic trends influence my student loan refinancing outcomes?

Economic conditions, including inflation trends and changes in monetary policy, can affect refinancing rates and lender requirements. Market volatility may lead to fluctuating interest rates, altering the cost-benefit dynamic of refinancing over time. It is important for borrowers to monitor these trends closely and assess how shifts in the economic landscape could impact loan terms and overall repayment costs. Additionally, understanding broader financial indicators can help in timing a refinance decision to capitalize on favorable market conditions. For insights into how specialized fields manage loan refinancing under varying economic climates, review the analysis provided by our article on FAFSA cosmetology school.

What options exist for young borrowers in the refinancing landscape?

Young borrowers often have limited credit history and financial experience, which can affect their eligibility for traditional refinancing programs. Evaluating alternative financing strategies—such as joint applications or co-signed loans—can provide access to competitive rates while building credit profiles. It is advisable to compare lenders that offer specialized programs for early-career applicants and consider supplemental resources for financial education to ensure well-informed decisions. For more detailed guidance on exploring funding avenues without parental involvement, see Can an 18 year old apply for student loans?.

What questions should I ask my lender before refinancing?

When discussing refinancing options, ask your lender for a clear breakdown of all associated fees, including origination charges, application fees, and any prepayment penalties that might apply. Inquire about the flexibility of repayment plans and whether variable interest rates could adjust based on market fluctuations. Request detailed information on underwriting criteria and risk assessments used to determine your refinancing terms, ensuring transparency in how your financial profile influences the offer. Moreover, confirm if there are any provisions for modifying terms in unforeseen circumstances and how any potential changes in economic conditions might impact your loan. For further competitive insights, consider reviewing options available through online universities for working adults.

How can refinancing savings be used for further education?

Refinancing student loans can reduce monthly payments and overall interest, potentially freeing up funds for subsequent educational investments. Borrowers might allocate these savings toward certifications, professional development courses, or even advanced degrees that complement their career goals. For instance, dedicating a portion of your monthly savings to continue your education could enhance your earning potential and improve long-term financial stability. Additionally, if you are considering pursuing an advanced academic credential with a shortened timeframe, explore the shortest PhD programs online to determine if accelerated doctoral programs align with your educational and professional objectives.

How do loan terms like repayment periods affect my interest rate?

Longer repayment periods typically come with higher interest rates. This is because when a lender extends your credit over a more extended period, the risk of you defaulting on the loan increases. To mitigate this increased risk, lenders charge higher interest rates. Additionally, the longer duration means the lender's capital is tied up for a more extended period, warranting a higher rate to compensate for this opportunity cost.

Meanwhile, shorter repayment periods generally have lower interest rates. By opting to pay back the loan faster, you reduce the lender's risk of non-repayment, as their exposure to potential financial instability on your part is shorter. Consequently, banks that refinance student loans are willing to offer lower interest rates for shorter-term loans since their capital is recouped quicker, and the overall risk is minimized.

The table below shows a sample calculation for both scenarios.

What happens to my federal loan benefits if I refinance?

Refinancing your federal student loans with a bank eliminates your access to federal loan benefits. These benefits are significant and can provide valuable protections and savings opportunities, so it is crucial to understand what you would be giving up:

• Income-Driven Repayment (IDR) plans: These plans adjust your monthly payment based on your income and family size. IDR can be a lifesaver if you experience financial hardship.
• Loan forgiveness programs: Federal programs forgive your remaining loan balance after a certain number of qualifying payments, such as Public Service Loan Forgiveness or teacher forgiveness programs. Refinancing eliminates your eligibility for these programs, even if you were close to qualifying.
• Deferment and forbearance: These programs allow you to temporarily postpone or reduce your loan payments due to hardship, military service, or educational leave. Private lenders rarely offer such generous deferment or forbearance options.
• Lower interest rates on subsidized loans: Subsidized federal loans have interest payments covered by the government during periods of deferment. Refinancing eliminates this benefit.
• Federal loan discharge: Federal loans may be discharged in case of death or permanent disability. Private lenders do not always offer this.

What steps are involved in refinancing student loans with a bank?

Here is a breakdown of the steps involved in refinancing student loans with a bank:

Application Process

1. Choose a lender: Select the bank offering the most favorable interest rate and terms that align with your financial goals.
2. Submit a formal application: Complete the application with your personal and financial information.
3. Provide supporting documents: This typically includes proof of income (pay stubs, tax returns), proof of employment, government ID, and student loan statements.

Loan Approval and Finalization

1. Credit check: The lender will conduct a hard credit check to finalize your application.
2. Loan approval and terms: If approved, the bank will provide loan details like interest rate, repayment term, and any associated fees.
3. Review and sign documents: Carefully review the loan agreement before signing.
4. Loan disbursement: The bank will pay off your existing student loans, and your new repayment schedule with the bank begins.

The chart below shows the minimum and maximum loan amounts that you can borrow from banks that refinance student loans.

Here’s What Students Say About Banks That Refinance Student Loans

"The online format was perfect for my busy work schedule. Juggling travel and client meetings, I wouldn't have been able to pursue an MBA traditionally. The asynchronous classes allowed me to learn at my own pace, in airports or hotel rooms in between work commitments. The online discussions with classmates from across the globe were incredibly insightful - we shared perspectives from vastly different industries. Earning my MBA online stretched me, but it was so rewarding to graduate with a skillset that helped me launch my own consulting firm." - Lisa

"I was worried about missing out on the networking aspect of an MBA. But the online program surprised me. There were dedicated online forums where we could connect with classmates and share challenges and ideas. We even had regional video conferences a few times a year where we met face-to-face. It wasn't the same as a traditional program, but I built valuable relationships with aspiring entrepreneurs from all over the country. The professors were also fantastic. They were readily available online for questions and even offered virtual one-on-one sessions to help me refine my business plan. I wouldn't have had this level of access and mentorship in a large, traditional classroom setting." - Mark

"The flexibility of the online program allowed me to balance my studies with caring for my young child. The professors were incredibly understanding and accommodating. The real-world case studies and simulations in the program were so engaging. I could immediately apply the learnings to my family business, helping us develop a new marketing strategy that increased our online sales by 20%. Earning my MBA online wasn't just about getting a credential; it was about acquiring the knowledge and skills to make a real difference in my family's business." - Sarah

Key Findings

• Fixed-rate loans usually have slightly higher interest rates than variable-rate loans.
• Shorter loan terms generally offer lower interest rates compared to longer terms.
• Income and employment history are essential factors for loan approval.
• A low debt-to-income ratio improves the likelihood of refinancing approval.
• Banks that refinance student loans may have specific requirements regarding citizenship or residency status for loan applicants.
• Origination fees and other charges can add to the overall cost of the refinanced loan.
• Federal loan benefits, like deferment and forbearance, are lost when refinancing with a private bank.

Other Things You Should Know About Banks That Refinance Student Loans

What is not a good reason to refinance a student loan?

Refinancing a student loan can be a good option given the rising college tuition fees, but fefinancing federal student loans for a lower interest rate is not advisable if you value federal benefits like income-driven repayment or loan forgiveness. Refinancing with a bank will eliminate these federal benefits.

How long does it take to refinance student loans?

The refinancing process typically takes between 30 to 45 days to complete. It can vary depending on the lender you choose and any additional documentation required.

Can I refinance my student loans without a job?

No, it is very unlikely. Banks rely on proof of income to assess your ability to repay the loan. Without a job, securing a refinance will be difficult.

References:

• Hanson, M. (2024, July 15). Student Loan Debt Statistics [2024]: Average + total debt. Education Data Initiative. https://educationdata.org/student-loan-debt-statistics