What Are The Fees To Refinance Student Loans? - Make Lemonade

What Are The Fees To Refinance Student Loans?

By Make Lemonade Staff | Updated October 1, 2019

The fees to refinance student loans are $0. Here’s what you need to know.

Is there a fee to refinance student loans?

There are no fees to refinance student loans. That means student loan refinancing has:

No origination fees

There are no applications fees to apply for student loan refinancing. You can even check your interest rate for free in about two minutes before you apply. Once you apply, the online application only takes about 10-15 minutes.

No third party fees

Unlike mortgages, there are no appraisals or broker commissions that you have to pay.

No funding fees

Once you are approved for student loan refinancing, there are no fees to disburse your student loans.

No prepayment fees

Unlike most mortgages, there is no prepayment fee if you choose to pay off student loans early.

Compare The Best Student Loan Refinance Rates For 2019

Lender
Rates (APR)
Minimum Credit Score

Overview

Variable Rates:1.99% - 6.89%
Fixed Rates:3.45% - 6.99%
Minimum Credit Score:650
Minimum Income:None
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5-20 years
Borrower Residency:All States except DE, KY, NV
Unemployment Protection:Yes
Co-signer Option:No

Overview

Variable Rates:2.39% - 6.01%
Fixed Rates:3.14% - 6.69%
Minimum Credit Score:680
Minimum Income:$35,000
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$15,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:1.99% - 6.65%
Fixed Rates:3.50% - 7.02%
Minimum Credit Score:660
Minimum Income:None
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:2.21% - 7.26%
Fixed Rates:3.46% - 7.36%
Minimum Credit Score:650
Minimum Income:None
Fees:None

Details

Eligible Loans:Private or Federal
Minimum Loan Amount:$5,000 ($10,000 in CA)
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Unemployment Protection:Yes
Co-signer Option:Yes

Overview

Variable Rates:1.99% - 6.65%
Fixed Rates:3.50% - 7.02%
Minimum Credit Score:660
Minimum Income:None
Fees:None

Details

Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5 - 20 years
Borrower Residency:All States
Unemployment Protection:Varies
Co-signer Option:Yes

Advertiser Disclosure

Is student loan refinancing free?

While there are no fees, you are still responsible to pay interest each month. Interest is added to the principal balance that you borrowed. You also may be charged a late fee if you make a late payment. There are many reasonswhy to refinance student loans. The main reason that borrowers refinance student loans is to lower their interest rate, which can potentially save thousands of dollars.

For example, let’s assume that you have $100,000 of student loans at an 8% interest rate and a 10-year repayment term. If you can refinance student loans at a 2.70% interest rate, you could lower your monthly payment by $261 and save $31,375 total.

This student loan refinancing calculator can show you how much money you can save when you refinance student loans.

With student loan refinancing, you can choose loan terms that best match your financial situation. For example, you can choose a fixed interest rate or variable interest rate. You can also choose a shorter student repayment period such as five years or a longer student loan repayment such as 20 years.If you choose a shorter repayment period, your monthly payment will be higher, but you will also pay less total interest and save money. If you choose a longer student loan repayment period, your monthly payment will be lower, but you will pay more interest over time, which can increase the cost of your student loans.

You can easily compare the latest student loan refinancing rates, loan terms and fees.

How much does it cost to refinance student loans?

Even though there are no fees to refinance student loans, make sure it’s the right decision for you. The advantages of student loan refinancing are clear:

  • Lower interest rate
  • Save money
  • Pay off student loans faster
  • Ability to change loan terms
  • Flexible student loan repayment
  • Change student loan servicer
  • Better customer service

When you refinance student loans, you no longer have any federal student loans. If you plan to apply for public service loan forgiveness, for example, or expect to choose an income-driven repayment plan, then you may not want to refinance federal student loans. Therefore, you should weigh the potential benefits of saving money with the potential cost of giving up access to certain federal programs.

You can also refinance private student loans and keep your federal student loans outstanding, if you plan to participate in any federal programs. Student loan refinancing is available for federal student loans, private student loans or both, including for undergraduate and graduate student loans.