Refinancing student loans presents a beneficial opportunity for cost savings and expediting debt repayment.
Despite lower income levels, individuals may assume they do not meet the criteria for student loan refinancing.
Nevertheless, numerous lenders have modest income prerequisites, and eligibility may still be attainable by involving a co-signer, even if personal income falls below their stipulations.
Top Student Loan Refinance Options for Low Incomes
The table displays ratings and associated variable and fixed APRs for various student loan providers as assessed by Forbes Advisor.
Rhode Island Student Loan Authority holds a rating of 4.5, offering variable APRs ranging from 6.34% to 8.54%.
SoFi® has a rating of 3.5, with variable APRs from 6.24% to 9.99% and fixed APRs from 5.24% to 9.99% with autopay.
MEFA also holds a rating of 3.5, offering variable APRs from 6.20% to 8.99%.
Citizens Bank Student Loans, rated at 3.5 stars, provides variable APRs from 7.29% to 12.44% and fixed APRs from 6.99% to 10.99%.
Laurel Road and Earnest both hold a rating of 3.0 stars. Laurel Road offers variable APRs from 4.97% to 10.89% and fixed APRs from 5.22% to 10.99%.
Earnest provides variable APRs from 5.72% to 9.99% and fixed APRs from 5.19% to 9.99%. PNC Bank, also rated at 3.0 stars, presents variable APRs from 7.89% to 14.99% and fixed APRs from 6.99% to 13.94%.
Student Loan Refinancing Essentials
Refinancing involves collaborating with a private lender to merge existing student loans into a single new loan.
Since this process is conducted through a private lender, eligibility criteria are set by the lender. Typically, borrowers need a good credit score and a steady income to qualify.
Some lenders may have income thresholds, which can be challenging for those with lower incomes.
The definition of low income varies by location, but commonly relies on earnings falling below 250% of the federal poverty guideline for one’s family size and location.
According to this criterion, an individual with annual earnings below $36,450 would be considered to have a low income.
