Should You Refinance Navient Student Loans? (NaviRefi Compared)
If you have student loans with Navient and are thinking about refinancing, you may have searched for a NaviRefi loan only to end up on Earnest’s website. That’s because NaviRefi, Navient’s former student loan refinance brand, is no longer offered.
Today, borrowers looking for NaviRefi are directed to Earnest, the lender that originated NaviRefi loans from the beginning. While the name has changed, your refinancing options haven’t.
The bigger question is whether refinancing your Navient student loans makes sense in the first place. Because refinancing replaces your existing loan with a brand-new private loan, it’s worth comparing Earnest with other lenders to find the best rates, repayment terms and borrower benefits.
What happened to NaviRefi?
Most people are familiar with Navient as a former federal student loan servicer. But before the company exited federal student loan servicing in 2021, it also offered student loan refinancing under the NaviRefi brand.
What many borrowers didn’t realize is that NaviRefi loans were always originated by Earnest, which became a Navient subsidiary in 2017. Although the refinance product carried the NaviRefi name, Earnest was the lender behind the loan.
NaviRefi is no longer available as a refinancing option, and existing NaviRefi loans have been serviced by Earnest since October 2023.
Should you refinance your Navient student loans?
First and foremost, Earnest and other student loan refinance companies are private lenders. You can refinance both federal and private student loans but weigh this decision carefully — especially if you’re considering refinancing federal student loans.
As soon as you refinance federal student loans, they become private student loans. And private lenders simply can’t match all the borrower protections, forgiveness programs, and student loan repayment options provided by the Department of Education. For example, if you’re trying to get Public Service Loan Forgiveness (PSLF), refinancing your federal loans would make them ineligible.
If you have federal student loans, our rule of thumb is to consider refinancing once you meet these conditions:
- You’re employed in the private sector.
- You have a solid emergency fund.
- The total amount you owe is less than 1.5 times your annual income.
For example, let’s say you’re working as a software engineer for a private company making $100,000 per year. If you owe $75,000 in federal student loans, now would be a good time to consider refinancing because you owe less than 1.5 times your annual income (which would be $150,000 in this case).
In this situation, it’s less likely you’ll need the protections that come with federal student loans. If you qualify for a lower interest rate, refinancing could save you money over the life of your loan.
Refinancing student loans with Earnest (formerly NaviRefi)
If you’re considering refinancing your Navient student loans, here’s what you should know about Earnest, the lender that originated NaviRefi loans.
Interest rates
The interest rate you qualify for will depend heavily on your credit score, income, debt and other factors. Earnest offers both fixed- and variable-rate loans, and borrowers can receive a 0.25% interest rate discount by enrolling in autopay. This benefit is pretty standard for most private student loan lenders.
Fees
Earnest doesn’t charge origination fees for your loan refinance. It also doesn’t charge any application fees or prepayment penalties for paying off your loan early.
While many refinance lenders also avoid these fees, policies can vary. Before accepting an offer, review the lender’s disclosures for any potential costs, such as late payment fees or other charges that could increase the overall cost of your loan.
Student loan refinance amounts
Earnest refinances eligible student loan balances starting at $5,000, with maximum loan amounts up to $550,000, depending on your degree and financial profile. However, minimum loan amounts may vary by state (e.g., California, New Mexico and Kentucky).
Repayment terms
Earnest offers a solid mix of student loan repayment options. You can refinance your loan term for anywhere between five to 20 years. This gives borrowers a lot of flexibility to pick a monthly payment that fits their budget.
If minimizing loan cost is your top priority, know that the best interest rates are usually offered to borrowers who choose the shortest terms. But a shorter term also means a higher monthly payment. Aim to pick a term that will offer you the best interest rate at a monthly payment that you can afford.
The only exception to the repayment options listed above is for borrowers who live in Kentucky. Earnest only allows Kentucky residents to refinance loans for up to 10 years if your student loans are $15,000 or less.
Earnest is one option, but not the only option
Should you just refinance with Earnest? Not necessarily.
Even though borrowers looking to refinance Navient student loans are now directed to Earnest, refinancing always replaces your existing student loans with a brand-new private loan. That means there’s no special advantage to refinancing with Earnest simply because you’re already with Navient.
Instead, compare multiple lenders before making a decision. Interest rates, repayment terms, borrower protections, and eligibility requirements can vary from one lender to another. One lender may offer you a lower rate, while another might have repayment options or hardship benefits that better fit your financial situation.
Earnest may be a great fit for some borrowers, but other top lenders — including SoFi® and Credible — may offer lower rates or repayment terms that better fit your financial goals.
Checking rates won’t hurt your credit score, so check several
One of the biggest misconceptions about refinancing is that comparing lenders will hurt your credit score. Fortunately, that’s usually not the case.
Most student loan refinance lenders let you check your rates through a soft credit inquiry. That means you can compare prequalified offers from multiple lenders without affecting your credit score.
Once you choose a lender and submit a full application, the lender will perform a hard credit inquiry before finalizing your refinance.
By comparing multiple lenders, you can be assured you’ll get the best refinancing deal possible. This process helps keep more money in your pocket and can enable you to pay off your student loans even faster.
Refinance on your terms, not Navient’s
Just because NaviRefi is gone doesn’t mean your refinancing options have disappeared. Navient borrowers who likely would have refinanced through NaviRefi in the past are now directed to Earnest for their refinancing needs. But Earnest is just one of many lenders worth considering.
If you have Navient private student loans — or you’ve decided refinancing your federal loans fits your repayment strategy — a lower interest rate could save you thousands and help you become debt-free sooner.
Before you commit, compare rates from several lenders and choose the one that offers the best combination of interest rates, repayment terms, and borrower benefits for your financial goals.
