Best Lenders to Refinance Student Loans with Low Income in October for 2025

by Alex Hillsberg , MA

Student Finance & Loan Expert

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The rising burden of student loans has made it increasingly difficult for graduates, especially those with low incomes, to manage their debt. Recent statistics show that over 45 million Americans collectively owe more than $1.7 trillion in student loans, with many borrowers facing high interest rates and unmanageable monthly payments.

If you're looking for lenders who can refinance student loans with low income, finding the right lender can make a substantial difference in achieving financial stability. To help those struggling with student loans, I’ve used my extensive experience in career planning to identify the best lenders for refinancing, focusing on options available for 2025. 

Key Things You Should Know About the Best Lenders to Refinance Student Loans with Low Income

• The debt-to-income ratio required to be eligible for student loan refinancing is 50%.
• The average refinancing rate for 5-year variable terms is 6.64% for those with a credit score ranging from 720 to 779.
• Today's average refinancing rate for 5-year variable terms is 6.64%, and the average for 10-year fixed terms is 7.51%.
• The process of refinancing student loans typically takes between 30 to 45 days to complete.
• A credit score of 650 or above is typically recommended to qualify for better interest rates.

Table of Contents

1. Best Lenders to Refinance Student Loans with Low Income for 2025
2. What are the income requirements to refinance student loans with low income?
3. What documentation is needed to prove income for student loan refinancing?
4. What are the current interest rates to refinance student loans with low income?
5. How do fixed vs. variable interest rates affect low-income borrowers?
6. How can low-income borrowers secure the best interest rates?
7. How long does it take to refinance student loans with low income?
8. What are alternative options if refinancing isn’t feasible for low-income borrowers?
9. What common mistakes should be avoided when refinancing student loans with low income?
10. Is refinancing worth it for low-income borrowers?
11. What refinancing alternatives exist for borrowers with no credit history or low income?
12. How does refinancing affect eligibility for loan forgiveness programs?
13. How Does Debt-to-Income Ratio Influence Refinancing Options for Low-Income Borrowers?
14. What alternative financing options can help cover living expenses during refinancing?
15. How Can Refinancing Support Long-Term Financial and Educational Growth?
16. How Can Low-Income Borrowers Enhance Their Financial Preparedness for Refinancing?
17. Can Further Education Elevate Refinancing Opportunities for Low-Income Borrowers?
18. What Hidden Fees Should Low-Income Borrowers Consider When Refinancing Student Loans?
19. What Criteria Should You Use to Compare Refinancing Offers?
20. What Role Does Credit Score Improvement Play in Refinancing Options for Low-Income Borrowers?
21. Other Things You Should Know About Best Lenders to Refinance Student Loans With Low Income

Best Lenders to Refinance Student Loans with Low Income for 2025

1. Splash Financial

Splash Financial is notable for not requiring a minimum income, making it accessible to many borrowers. It offers competitive interest rates, which can significantly reduce monthly payments and total loan costs. The straightforward eligibility requirements make it an attractive option for those just starting their careers or facing financial challenges.

• Best for: No minimum income requirement
• Credit score requirement: 650
• Fixed APR: 5.19-9.99%
• Variable APR: 5.28-9.99%

2. Earnest

Earnest also does not require a minimum income, appealing to low-income borrowers. Its flexible APR range and the focus on individual financial profiles help many students manage their debt effectively. Earnest's personalized approach to refinancing considers more than just credit scores, offering customized solutions based on borrowers' unique financial situations.

• Best for: No minimum income requirement
• Credit score requirement: 650
• Fixed APR: 4.99-9.74%
• Variable APR: 5.89-9.74%

3. EDvestinU

EDvestinU is designed for borrowers earning less than $30,000 annually if they have a co-signer. This option can be beneficial for those who need additional support to qualify for refinancing. With relatively high credit score requirements, EDvestinU ensures that co-signers can provide the necessary financial backing, which helps secure more favorable loan terms.

• Best for: Annual incomes of less than $30,000 with a co-signer
• Credit score requirement: 700
• Fixed APR: 7.41-11.03%
• Variable APR: 7.52-9.27%

4. Advantage Education Loan

Similar to EDvestinU, Advantage Education Loan offers services to refinance student loans with low income. Its relatively low fixed APR makes it an attractive option for reducing long-term debt. Advantage Education Loan's emphasis on co-signers provides additional security for the lender, which in turn allows borrowers to benefit from lower interest rates.

• Best for: Annual incomes of less than $30,000 with a co-signer
• Credit score requirement: 670
• Fixed APR: 5.95-9.99%

5. Navy Federal

Navy Federal offers refinancing for low-income borrowers without the need for a co-signer. While specific APR details are not disclosed, the accessibility without a co-signer is a crucial advantage. Navy Federal's membership-based approach often includes additional benefits and resources for military members and their families, making it a unique option in the refinancing market.

• Best for: Annual incomes of less than $30,000 with no co-signer
• Credit score requirement: Does not disclose
• Fixed APR: N/A
• Variable APR: N/A

Here's What Graduates Have to Say About Refinancing Their Student Loans

"Refinancing my student loans helped me to reduce my interest rate from 6.8% to 3.5%, saving me thousands of dollars over the life of the loan. It's made my monthly payments more manageable, allowing me to focus on other financial goals." - Hallie

"I refinanced to combine multiple loans into one, which simplified my payments and lowered my overall interest rate. Now I have a clearer path to paying off my debt sooner, and I have more flexibility with my budget." - Jenna

"After refinancing, I finally feel like I have control over my finances. The lower interest rate means more of my monthly payments go toward the principal, not interest. It's been a relief to see my loan balance decrease faster than before." - Yvonne

What are the income requirements to refinance student loans with low income?

The income requirements to refinance student loans with low income typically vary by lender, but there are some common guidelines:

• Minimum Income. Lenders typically require a minimum annual income, often around $30,000 to $50,000. Some lenders may have higher requirements, especially for those refinancing larger loan amounts.
• Debt-to-Income Ratio (DTI). Lenders often look at your debt-to-income ratio, which is your total monthly debt payments divided by your gross monthly income. A DTI ratio below 50% is generally preferred, though some lenders may require a lower ratio.
• Employment Status. Proof of stable employment or a steady source of income is usually required. Some lenders may consider your employment history and the stability of your job.
• Credit Score. While not an income requirement, your credit score significantly impacts your eligibility and the interest rate you may receive. Higher credit scores typically result in better refinancing terms.
• Co-signer. If your income is below the required threshold, having a co-signer with a higher income can improve your chances of approval and potentially secure a better interest rate.

What documentation is needed to prove income for student loan refinancing?

To prove low income for student loan refinancing, you typically need to provide the following documentation:

• Pay Stubs. Recent pay stubs, usually from the past one to three months, to show your current earnings.
• Tax Returns. Copies of your most recent federal tax returns, often from the past one or two years, to verify your annual income.
• W-2 Forms. W-2 forms from your employer(s) for the past one or two years to provide additional proof of income.
• Bank Statements. Recent bank statements, typically from the past few months, to show your financial stability and consistent income deposits.
• Employment Verification. A letter from your employer verifying your current employment status, job title, and income. Some lenders may have specific forms for this purpose.
• Profit and Loss Statements. If you are self-employed, you may need to provide profit and loss statements for your business, as well as additional tax documentation.
• Additional Income Documentation. If you have additional sources of income, such as rental income or investment income, you may need to provide documentation for these as well. According to recent data, 64% of student loan borrowers who successfully refinanced their loans had a credit score of 700 or higher, while the average income for these borrowers was $98,000 per year.

What are the current interest rates to refinance student loans with low income?

Generally, refinancing rates can range from around 2.5% to 8% for fixed-rate loans and even lower for variable-rate loans. Borrowers with excellent credit scores and stable incomes tend to qualify for the lowest rates. Those with less favorable credit histories may see rates on the higher end of the spectrum. 

Lenders who can refinance student loans with low income offer both fixed and variable interest rate options. Fixed rates remain constant throughout the loan term, providing predictable monthly payments, while variable rates can change over time, typically starting lower than fixed rates but with the potential to increase.

In 2024, many borrowers are leaning toward fixed-rate loans due to economic uncertainty and the potential for rising interest rates. However, some borrowers who anticipate paying off their loans quickly may prefer the initial savings offered by variable-rate loans.

How do fixed vs. variable interest rates affect low-income borrowers?

Fixed interest rates provide a consistent monthly payment amount throughout the life of the loan. This predictability can be especially beneficial for low-income borrowers who need to budget carefully and avoid unexpected expenses. 

On the other hand, variable interest rates typically start lower than fixed rates, which can make them an attractive option for borrowers looking to minimize initial payments. For low-income borrowers, the lower starting rate can provide immediate relief and make loan payments more manageable in the short term.

However, the uncertainty of variable rates means that payments can increase over time if market interest rates rise. This potential for increasing payments can pose a significant risk for low-income borrowers who may struggle to afford higher payments in the future, potentially leading to missed payments or loan default.

Here's an overview of the fixed interest rates for 10-year student loans, based on credit score ranges:

How can low-income borrowers secure the best interest rates?

Securing the best interest rates to refinance student loans with low income can be challenging for low-income borrowers. I advise students to try the following strategies to improve their chances:

• Improve Credit Score. A higher credit score typically results in better interest rates. Borrowers can improve their credit scores by paying bills on time, reducing outstanding debt, and correcting any errors on their credit reports. Based on a recent report, a credit score of 650 or higher is generally recommended to qualify for better interest rates.
• Co-Signer. Having a co-signer with a strong credit profile can significantly improve the chances of securing a lower interest rate. The co-signer's creditworthiness is considered along with the borrower's.
• Shop Around. Comparing offers from multiple lenders can help borrowers find the best rates. Some lenders for online college cost may have more favorable terms for borrowers with lower incomes.
• Consider Federal Programs. Federal student loans often have income-driven repayment plans and other benefits that can provide more manageable terms for low-income borrowers.
• Debt-to-Income Ratio. Maintaining a low debt-to-income ratio can improve the likelihood of securing a lower rate. This ratio can be improved by increasing income or paying down existing debt.
• Employment Stability. Lenders prefer borrowers with stable employment. Demonstrating a consistent income over time can be beneficial.
• Use Lender Discounts. Some lenders offer rate discounts for automatic payments or loyalty discounts for existing customers. These can slightly reduce the interest rate.

What are alternative options if refinancing isn’t feasible for low-income borrowers?

For borrowers who face challenges qualifying for refinancing due to low income, limited credit history, or lack of a co-signer, alternative solutions can provide financial relief while addressing student loan debt. These options include the following:

1. Income-Driven Repayment Plans (IDRs): Federal student loans often provide income-driven repayment plans that adjust monthly payments based on income and family size. Borrowers with low income may benefit from significantly reduced payments, with potential loan forgiveness after 20 or 25 years of qualifying payments.
2. Loan Forgiveness Programs: Public Service Loan Forgiveness (PSLF) or forgiveness options for teachers and healthcare workers are worth exploring. These programs allow borrowers to eliminate loan balances after meeting specific criteria, such as working in eligible occupations or sectors and making consistent payments over a defined period.
3. Deferment or Forbearance: These temporary relief strategies can provide financial flexibility during periods of financial hardship. While interest might accrue during forbearance, these options allow borrowers to pause payments without going into default.
4. Budgeting and Financial Counseling: Implementing a focused budget can help free up funds for loan payments. Additionally, consulting a financial advisor can provide insights on managing debt more effectively without refinancing. They may recommend options such as negotiating payment terms with lenders or prioritizing higher-interest debts.
5. Consideration of New Student Loans: For those pursuing further education, understanding when to apply for student loans is critical. Proper timing and research can help secure loans with better terms, potentially easing the debt burden while planning for future financial stability.

These alternatives ensure that borrowers facing challenges with refinancing still have paths to manage or reduce their student loan debt effectively.

How long does it take to refinance student loans with low income?

What common mistakes should be avoided when refinancing student loans with low income?

If you want to refinance student loans with low income, avoiding common mistakes can save time, money, and stress. Here are some key mistakes to avoid:

• Not Shopping Around. Failing to compare rates and terms from multiple lenders can lead to missing out on better deals. Each lender offers different interest rates, fees, and benefits.
• Ignoring Fees. Some lenders charge origination fees, application fees, or prepayment penalties. Make sure to understand all the costs associated with refinancing to avoid unexpected expenses.
• Overlooking Federal Benefits. Refinancing federal student loans with a private lender means losing federal benefits like income-driven repayment plans, loan forgiveness programs, and deferment or forbearance options. According to recent data, 43% of borrowers regretted refinancing because they lost access to federal benefits
• Not Checking Credit Score. A low credit score can result in higher interest rates. Check your credit report for errors and take steps to improve your score before applying.
• Choosing the Wrong Term Length. Opting for a longer term can reduce monthly payments but increase the total interest paid over time. Conversely, a shorter term may have higher monthly payments but save money in the long run.
• Skipping the Co-Signer Option. If your credit score is not strong, using a co-signer with good credit can help secure a lower interest rate. Ensure the co-signer understands their responsibilities.

Is refinancing worth it for low-income borrowers?

Refinancing student loans can be a valuable strategy for low-income borrowers, provided they carefully evaluate their financial situation and the terms offered by various lenders. The primary advantage of refinancing is the potential to secure a lower interest rate, which can significantly reduce monthly payments and the overall cost of the loan.

For low-income borrowers, this reduction can free up much-needed funds for other essential expenses, making it easier to manage day-to-day finances. Recent student loan debt statistics indicate that borrowers who refinanced their loans saved an average of $259 per month on their payments.

Additionally, lenders like Splash Financial and Earnest do not require a minimum income, making refinancing accessible to those who might not meet income thresholds elsewhere.

However, it may not always be the best option to refinance student loans with low income. It often requires a good credit score or a co-signer, which might not be feasible for everyone. Furthermore, refinancing federal student loans with a private lender results in the loss of federal protections such as income-driven repayment plans and loan forgiveness programs. 

What refinancing alternatives exist for borrowers with no credit history or low income?

For borrowers who face challenges refinancing due to low income or a lack of credit history, exploring viable alternatives is crucial. One such option includes no credit check student loans, which cater to individuals with limited to no credit profiles. These loans often have more forgiving eligibility criteria, prioritizing affordability and accessibility over stringent credit requirements and income thresholds.

Additionally, borrowers may want to consider income-driven repayment (IDR) plans for federal student loans, which tailor monthly payments to a percentage of their discretionary income. IDR plans can provide short-term relief while keeping loans in good standing. For those managing private student loans, negotiating with lenders to restructure repayment terms or seeking temporary forbearance might also be beneficial.

Another alternative to explore is using a reliable co-signer with a strong credit profile to refinance. This approach can enable borrowers to access more competitive interest rates and repayment terms. However, it's essential for both parties to understand the shared financial responsibility involved in co-signed loans.

Ultimately, each borrower's situation is unique, and selecting the best path requires a thorough evaluation of all available options.

How does refinancing affect eligibility for loan forgiveness programs?

Refinancing federal student loans with a private lender can affect your eligibility for loan forgiveness programs in the following ways:

• Loss of Federal Benefits. Refinancing federal loans with a private lender means you lose access to federal benefits, including income-driven repayment plans and federal loan forgiveness programs such as Public Service Loan Forgiveness (PSLF).
• Public Service Loan Forgiveness (PSLF). To be eligible for PSLF, you must have federal Direct Loans and be employed by a qualifying employer. Refinancing with a private lender disqualifies you from this program.
• Income-Driven Repayment Plans. Federal loans offer income-driven repayment plans that can lead to forgiveness after 20-25 years of qualifying payments. Refinanced loans with private lenders do not offer these plans.
• Teacher Loan Forgiveness. Similar to PSLF, refinancing with a private lender makes you ineligible for federal teacher loan forgiveness programs.

Thus, you may get a lower interest rates or other benefits if you choose to refinance student loans with low income, but it's crucial to weigh these against the potential loss of valuable federal loan forgiveness and repayment options.

The chart below provides an overview of the total number of claims approved for public service loan forgiveness applications from 2020 to 2023:

How Does Debt-to-Income Ratio Influence Refinancing Options for Low-Income Borrowers?

Debt-to-income ratio (DTI) is a critical factor that lenders assess to determine the risk associated with refinancing student loans. A lower DTI can increase the likelihood of approval and lead to more favorable interest rates by demonstrating improved financial stability. Low-income borrowers can benefit from evaluating their DTI before applying for refinancing, as reducing overall debt or enhancing income streams can help optimize this metric. Additionally, strategic improvements—such as balancing educational investments and income opportunities, for example, exploring what is the easiest bachelor's degree—can contribute to a stronger financial profile and more competitive refinancing terms.

What alternative financing options can help cover living expenses during refinancing?

Low-income borrowers may experience temporary cash flow challenges as they navigate the refinancing process, making it essential to explore complementary funding avenues. Evaluating alternative financing methods—such as emergency grants, community aid programs, or targeted short-term loans—can provide the liquidity needed to manage everyday expenses without compromising longer-term financial strategies. Analyzing the specific terms, fees, and repayment structures of these alternatives ensures that they effectively bridge gaps during refinancing. For additional insights on managing living costs in conjunction with student loans, refer to Can you use student loans for living expenses?.

How can exceptional customer service impact the refinancing process for low-income borrowers?

Low-income borrowers may benefit from robust customer support throughout the refinancing process. A responsive customer service team can clarify complex refinancing terms, assist with documentation requirements, and provide prompt resolutions to application concerns. This level of support minimizes misunderstandings and streamlines the overall process, helping borrowers confidently navigate challenging financial decisions. Leveraging services such as Aidvantage Customer Service can further empower borrowers to secure competitive terms and maintain control over their financial future.

How Can Refinancing Support Long-Term Financial and Educational Growth?

Lowering monthly payments through refinancing can free up resources that contribute to long-term financial resilience and career advancement. By reducing the immediate debt burden, borrowers may strengthen their credit profiles and allocate savings toward skill enhancement or further education. This reinvestment can lead to broader employment prospects and improved income potential over time. Additionally, refinancing savings might be used to access innovative learning opportunities, such as military friendly online colleges, which cater to individuals balancing service commitments with educational goals.

How Can Low-Income Borrowers Enhance Their Financial Preparedness for Refinancing?

Review credit reports for errors and address any discrepancies promptly. Organize and update all required financial documentation, including recent pay stubs and tax returns, to streamline the application process. Evaluate budgeting strategies and establish an emergency fund to cushion initial costs associated with refinancing. Consider the potential for career advancement by exploring educational opportunities, such as the shortest masters degree, to improve income prospects and strengthen your overall financial profile.

Can Further Education Elevate Refinancing Opportunities for Low-Income Borrowers?

Pursuing additional education can bolster a borrower's financial profile by signaling long-term career commitment and income growth potential. Completing advanced programs can enhance creditworthiness and open doors to more competitive refinancing terms. For instance, obtaining an affordable master's degree online may lead lenders to offer improved interest rates and longer repayment flexibility, ultimately strengthening a borrower’s ability to manage debt.

What Hidden Fees Should Low-Income Borrowers Consider When Refinancing Student Loans?

Refinancing often promises lower interest rates, yet low-income borrowers should carefully review fee structures that might affect long-term savings. Lenders may include processing or origination fees, early repayment penalties, or administrative costs that, in aggregate, could offset initial benefits. Evaluating these hidden fees alongside loan terms helps reveal the true cost of refinancing and enables borrowers to make informed comparisons. For further insights on competitive offers, consider exploring low interest student loans to uncover options with transparent fee disclosures and overall affordability.

What Criteria Should You Use to Compare Refinancing Offers?

When comparing refinancing offers, low-income borrowers should focus on a comprehensive evaluation of key factors. Lenders’ advertised interest rates, annual percentage rates (APR), and transparent fee disclosures provide clarity on the true cost of refinancing. Assess whether the rates are fixed or variable to forecast long-term repayment scenarios, and scrutinize contractual terms to avoid potential pitfalls. Additionally, consider lender reputation, quality of customer service, and the robustness of application support as indicators of a positive refinancing experience. Leveraging independent reviews and performing side-by-side comparisons can further enhance decision-making. Exploring supplementary educational pathways through resources like online colleges for working adults may also contribute to long-term financial empowerment.

What Role Does Credit Score Improvement Play in Refinancing Options for Low-Income Borrowers?

Enhancing your credit profile can lead to more favorable refinancing options without repeating income-based limitations. Proactive strategies—such as monitoring credit reports for discrepancies, reducing credit utilization, and consistently meeting repayment deadlines—can contribute to a more robust credit score. In addition, pursuing targeted educational programs, like obtaining a fastest online bachelor degree, may further solidify your long-term financial footing by broadening employment opportunities and boosting overall creditworthiness.

Key Findings

• ​​To refinance student loans with low income, a debt-to-income ratio of 50% or lower is typically required.
• For those with a credit score between 720 and 779, the average refinancing rate for 5-year variable terms stands at 6.64%.
• Average refinancing rates for student loans today are 6.64% for 5-year variable terms and 7.51% for 10-year fixed terms.
• The process of to refinance student loans with low income usually takes between 30 to 45 days to complete.
• To qualify for better interest rates, you must have a credit score of 650 or above.

Other Things You Should Know About Best Lenders to Refinance Student Loans With Low Income

Can you refinance student loans with no income?

Yes, it is possible to refinance student loans with no income, but it often depends on the lender's specific requirements. Some lenders, like Splash Financial and Earnest, do not have a minimum income requirement, which makes them more accessible to borrowers without a steady income.

However, having a good credit score or a co-signer with a reliable income can significantly improve the chances of approval and securing better interest rates. It's important to research and compare different lenders to find one that accommodates your financial situation.

Can I refinance student loans while unemployed?

Refinancing student loans while unemployed can be challenging, but it is not impossible. Lenders typically prefer borrowers who have a stable income to ensure they can make consistent payments. However, having a strong credit score or a co-signer with a steady income can improve your chances of getting approved.

Some lenders, like Earnest and Splash Financial, may consider other financial factors and your overall financial health, making it possible to refinance even without current employment. It's crucial to thoroughly evaluate the terms and ensure that refinancing is the best option for your circumstances.

How can financial advisors assist with refinancing student loans for low-income individuals?

Financial advisors assist low-income individuals with student loan refinancing by evaluating their financial health, researching and comparing refinancing options, and guiding them through eligibility and application processes. They negotiate better loan terms, educate on repayment plans like income-driven options, and integrate loan repayment into a broader financial strategy. Advisors provide ongoing support to adjust plans as financial circumstances change, making loan management more feasible and tailored to individual needs.

References:

1. Bankrate. (2023). How to refinance student loans. Bankrate.
2. CNN Underscored. (2024, July 8). Current student loan rates: July 2024. CNN Underscored. 
3. EducationData.org. (2023). Student loan debt statistics. EducationData.org.
4. EducationData.org. (2023). Student loan forgiveness statistics. EducationData.org.
5. Savingforcollege.com. (2024). Best student loan refinance companies. Savingforcollege.com