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To reduce student loan payments, consider refinancing if you have a low income and private student loans.
Last updated on July 10, 2024
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Lenders often require a minimum income to refinance your student loans. You'll likely need to earn at least $24,000.
But getting approval for student loan refinancing with a lower income can be difficult — there can be a big difference between the minimum income required and the actual average income of those approved. Still, you can refinance with the right lenders.
Before deciding to refinance, think twice if you have federal student loans. If you have private student loans, however, refinancing may be the best way to lower your payments.
Here are our picks of lenders to refinance student loans with low income, as well as tips to decide if this option is for you.
Why trust NerdWallet
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's student loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, The New York Times, The Washington Post, Nasdaq, MSN, ABC News, MarketWatch and many other national and regional media outlets. They also have appeared on NerdWallet's “Smart Money” podcast, as well as local TV and radio.
Why trust NerdWallet
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's student loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, The New York Times, The Washington Post, Nasdaq, MSN, ABC News, MarketWatch and many other national and regional media outlets. They also have appeared on NerdWallet's “Smart Money” podcast, as well as local TV and radio.
Lenders to Refinance Student Loans With Low Income
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
Splash Financial Student Loan Refinance Check rateon Splash Financial's website on Splash Financial's website | 5.0 /5 Best for No minimum income requirement | 650 | 5.94-8.95% | 7.60-7.85% | Check rateon Splash Financial's website on Splash Financial's website |
Earnest Student Loan Refinance Check rateon Earnest's website on Earnest's website COMPARE RATESon Sparrow’s website on Sparrow’s website | 5.0 /5 Best for No minimum income requirement | 650 | 4.89-9.74% | 5.89-9.74% | Check rateon Earnest's website on Earnest's website COMPARE RATESon Sparrow’s website on Sparrow’s website |
Our pick for
No minimum income requirement
on Splash Financial's website
Splash Financial Student Loan Refinance
5.0
NerdWallet rating
Min. credit score
650
Fixed APR
5.94-8.95%
Variable APR
7.60-7.85%
Key facts
Splash has no minimum income requirement.
Pros
- Select from multiple repayment options.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
- Loan features vary by lender.
- Forbearance and death discharge may not be available.
- You may need to become a member of a credit union to qualify.
Qualifications
- Typical credit score of approved borrowers or co-signers: 700+.
- Loan amounts: $5,000 to $500,000.
- Must have a degree: Yes, a bachelor’s degree or higher.
Available Term Lengths5 to 25 years
DisclaimerSplash Financial, Inc. (NMLS # 1630038) reserves the right to modify or discontinue products and benefits at any time without notice. The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer, but does not guarantee you will receive any loan offers. Terms and conditions apply. Products may not be available in all states. These rates are subject to change at any time. If you do not use the specific link included on this website, offers on the Splash website may include other offers from lending partners that may have a higher rate. Fixed Rate options range from 5.94% APR - 8.95% APR (without autopay). Variable rate options range from 7.60% APR (with autopay) to 7.85% APR (without autopay). Variable APRs and amounts subject to increase or decrease. Lowest rates are reserved for the highest qualified borrowers and may require an autopay discount of 0.25%. Some of the rates are based on the one-month London Interbank Offered Rate (“LIBOR”) index and some are derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 7.50% for a 10-year term would be $118.70. Variable loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 7.85% for a 5-year term would be $202.05.
Read Full Review
Check rateon Earnest's website
on Earnest's website
COMPARE RATESon Sparrow’s website
on Sparrow’s website
Earnest Student Loan Refinance
5.0
NerdWallet rating
Min. credit score
650
Fixed APR
4.89-9.74%
Variable APR
5.89-9.74%
Key facts
Earnest has no minimum income requirement but borrowers must have regular income.
Pros
- Customizable payments and loan terms.
- Option to skip one payment every 12 months.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
- Loans aren't available in Nevada.
Qualifications
- Typical credit score of approved borrowers or co-signers: 760.
- Loan amounts: $5,000 to $500,000.
- Must have a degree: No, but must be within six months of graduation and have income or a job.
Available Term Lengths5 to 20 years
DisclaimerActual rate and available repayment terms will vary based on your income. Fixed rates range from 5.14% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Variable rates range from 6.14% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Read Full Review
Our pick for
Annual incomes of less than $30,000 with a co-signer
COMPARE RATESon Sparrow’s website
on Sparrow’s website
EDvestinU Student Loan Refinance
4.5
NerdWallet rating
Min. credit score
700
Fixed APR
7.41-11.03%
Variable APR
7.52-9.27%
Key factsBest for students who don’t have a degree.
Pros
- You can refinance without a degree.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
- You cannot refinance parent PLUS loans in your name.
- Maximum loan amount is lower than most lenders offer.
Qualifications
- Typical credit score of approved borrowers or co-signers: 756.
- Minimum income: $30,000.
- Loan amounts: $7,500 to $200,000.
Available Term Lengths5, 10, 15 or 20 years
DisclaimerAPR, projected monthly payments, and total cost of loan examples are based on a $10,000 loan disbursed in one disbursem*nt with either 5–year, 10–year, 15–year or 20–year repayment. APR’s provided include a 0.25 percent interest rate reduction for authorizing our loan servicer to automatically deduct your payments each month from your bank account. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. Variable APR rates may increase or decrease depending on fluctuations in the London Interbank Offered Rate (LIBOR) index. Monthly interest rate accrual is based on the published One–Month London Interbank Offered Rate ("LIBOR") as of the last business day of the previous month plus your applicable margin.
Read Full Review
Read review
Advantage Education Loan Student Loan Refinance
5.0
NerdWallet rating
Min. credit score
670
Fixed APR
5.95-9.99%
Variable APR
N/A
Key factsBest for borrowers who didn’t graduate.
Pros
- You can refinance without a degree.
- Forbearance of 24 months is twice as long as most lenders.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
- Loans aren’t available in Alaska, Delaware, Illinois, Iowa, Nevada, New Jersey, Maine, Maryland, Rhode Island, Washington, Washington D.C.
- You cannot postpone repayment if you re-enroll in school.
Qualifications
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $7,500. Maximum depends on creditworthiness and debt-to-income ratio.
Available Term Lengths10, 15 or 20 years
Read Full Review
Our pick for
Annual incomes of less than $30,000 with no co-signer
Read review
Navy Federal Student Loan Refinance
4.5
NerdWallet rating
Min. credit score
Does not disclose
Fixed APR
N/A
Variable APR
N/A
Key facts
Borrowers can refinance with incomes of $24,000.
Pros
- Forbearance of 18 months is longer than many lenders offer.
- Greater-than-minimum payments allowed via autopay.
Cons
- Available only to existing Navy Federal Credit Union customers
- Students cannot refinance a parent PLUS loan in their name.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
- Typical credit score of approved borrowers: Did not disclose.
- $7,500 minimum to $125,000 for undergraduates, or $175,000 for graduate students.
- Must have a degree: Yes, at least an associate degree.
Available Term Lengths5, 10 or 15 years
Read Full Review
How to refinance student loans with low income
Having a low income doesn’t mean you can’t refinance student loans, but it may be harder to qualify. Take the following steps to help prevent your salary from holding you back:
Make sure you meet the lender’s income requirements. Not all lenders share their income requirements publicly, but those that do often set their minimum income threshold at more than $24,000. You may need to earn more than that number based on different factors, though. For example, EdvestinU requires a higher income if you want to refinance more than $100,000.
Have good credit. You’ll typically need a FICO score in at least the high 600s to qualify for refinancing. But getting your scores into the mid-700s or above may improve your odds and help you get a lower interest rate. Plus, a higher score can show lenders you do a good job managing money and expenses at your current income level.
Manage your debt-to-income ratio. If your income is low, your biggest hurdle to refinancing may be your debt-to-income ratio. DTI compares your monthly debts — student loans, car payments, rent, etc. — to your monthly income. This helps lenders understand whether you'll have enough cash on hand to afford your loan payments. Most lenders want a DTI below 50%.
Even if you can’t increase your income, you can take steps to make yourself a better candidate for student loan refinancing. For example, you can build credit faster by making payments on time and minding credit limits, or you could improve your DTI by paying off your credit cards (but leaving the accounts open) before you apply.
If low income still prevents you from being approved, consider refinancing with a co-signer. That person will be equally responsible for your loan. You won’t want them to be on the hook forever, though, so be sure to review potential lenders’ co-signer release policies.
Other repayment options if you have low income
Some private lenders may let you pay less or pause repayment temporarily. But refinancing is the best way to lock in a smaller payment that doesn’t cost you more long-term. Be sure to compare offers from multiple refinance lenders to get the best interest rate — and lowest bill.
» MORE: Student loan refinance calculator
Federal student loans have more repayment options if you don’t make a lot of money — particularly income-driven repayment plans. These plans tie payments to a fixed percentage of your discretionary income, usually 10%, and are the best option if you have federal student loans and a low income. Payments can be as low as $0, though you'll likely pay more overall.
Refinancing federal student loans costs you access to income-driven plans, as well as other repayment benefits like loan forgiveness programs. Even if you’re positive your earnings will grow — for example, you’re a medical resident — you may want to wait until your income actually increases to refinance federal loans.
STUDENT LOAN REFINANCE RATINGS METHODOLOGY
Our survey of more than 26 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loan refinance and our editorial guidelines.
Last updated on July 10, 2024
NerdWallet's Lenders to Refinance Student Loans With Low Income
- Splash Financial Student Loan Refinance: Best for No minimum income requirement
- Earnest Student Loan Refinance: Best for No minimum income requirement
- EDvestinU Student Loan Refinance: Best for Annual incomes of less than $30,000 with a co-signer
- Advantage Education Loan Student Loan Refinance: Best for Annual incomes of less than $30,000 with a co-signer
- Navy Federal Student Loan Refinance: Best for Annual incomes of less than $30,000 with no co-signer
Frequently asked questions
What income is required to refinance student loans?
Minimum income requirements vary by lender, and many don’t share this information publicly. Those that do usually require an income of at least $24,000 to refinance student loans.
What is the average income of borrowers who refinance student loans?
Borrowers whom lenders approve for student loan refinancing often have an average income that’s at least six figures. You can refinance if you earn less, but it may be harder to qualify.
How do I pay off student loans with low income?
Enroll in an income-driven repayment plan if you have low income and federal loans. Private loan borrowers typically don’t have that option, but refinancing may make payments more affordable.
Do any private lenders offer income-based repayment?
The majority of private lenders don’t offer plans that base student loan payments on your income. RISLA and Edly are exceptions, as both offer income-driven repayment for refinanced loans.
