Refinancing your student loans can be a smart way to lower your interest rate, reduce your monthly payment, or pay off your debt faster. But before you apply, it’s important to understand the qualifications most lenders—including credit unions—look for. Here’s what you should have in place before you start the process.

1. Strong Credit History

Most lenders require a credit score in the high 600s or above to qualify for refinancing.

• Scores above 700 often unlock the best rates.
• A higher score informs lenders you’ve managed credit responsibly in the past, making you a lower risk.
• If your score is lower, then you can still apply – especially with a qualified co-borrower – but you may not get the lowest available rates.

2. Stable Income

Lenders want to see proof that you can handle your refinanced payment, and a steady income demonstrates financial stability.

• Expect to provide recent pay stubs, W-2s, or tax returns.
• Self-employed borrowers may need additional documentation.

3. Manageable Debt-to-Income (DTI) Ratio

Your DTI compares your total monthly debt payments to your gross monthly income.

• Many lenders look for a DTI under 40–45%.
• Lower DTIs suggest you have more breathing room in your budget to handle your loan payment.
• You can calculate your DTI by adding up all your monthly debt payments and dividing by your gross monthly income.

4. Completed College Degree

Many refinancing programs require that you’ve already graduated from an eligible school. Some lenders may refinance loans for borrowers who didn’t finish a degree, but options can be limited.

5. Citizenship or Permanent Residency

Most lenders require you to be a U.S. citizen or permanent resident. If you’re in the U.S. on a visa, you may need a U.S. citizen co-borrower.

6. A Qualified Co-Borrower (If Needed)

If you don’t meet the credit or income requirements on your own, adding a co-borrower with strong qualifications can help. This person shares equal responsibility for the loan and can improve your chances of approval.

Why Refinance with a Credit Union instead of a Bank?

Credit unions are member-owned, not-for-profit institutions. That means:

• Lower interest rates and fees compared to many banks and online lenders.
• Personalized service and flexible underwriting.
• A mission to serve members, not shareholders.

Through our credit union finder tool, you can compare refinancing options from trusted credit unions nationwide—without affecting your credit score.

Bottom Line

Qualifying for student loan refinancing comes down to creditworthiness, stable income, and a solid financial profile. Even if you’re not ready today, you can take steps—like improving your credit score or lowering your DTI—to qualify in the future.

If you’re ready to explore your options, check out our finder tool to see competitive rates in minutes.