Several readers have asked how the student loan refinance rankings on this site are determined. Many lenders have also asked to have their company moved to a higher spot in the rankings.
In the interest of transparency, a clear explanation of the rankings criteria is probably necessary.
While there is no set formula for determining the top lender, several factors enter into the equation…
The Factors that Influence Lender Rankings
Interest Rates – This is the obvious factor. If a student loan refinance company is advertising terrible interest rates, it will rank poorly. For most borrowers, improving interest rates is the driving force behind a refinance. As a result, the available interest rates are critical.
Approval Statistics – Having excellent interest rates is nice, but if the majority of the borrowers get rejected, a company will not rank well. The lenders that approve the widest cross-section of borrowers will rank well, even if they are not advertising the lowest possible rates. The approval numbers come from both reader and lender feedback.
Loan Terms – A student loan is more than just an interest rate. Some lenders have unforgiving terms, while others are far more reasonable. Companies that try to impose unfair or deceptive terms will be penalized in the rankings.
Lender Reputation – Some student loan companies have better reputations than others. Negative reader feedback could push a lender lower in the rankings. Additionally, if there are significant complaints about a company with the Consumer Financial Protection Bureau, the position in the rankings will drop.
Putting all of these factors together, the rankings boil down to one simple question: Which lender is most likely to provide a positive experience to the average Student Loan Sherpa site visitor?
The lenders at the top of the list are the lenders that we think will have the best outcomes for readers.
How Other Student Loan Sites Decide on Rankings
Any consumer researching student loan refinance companies should know that the refinance business is quite competitive. While this competition can be a positive when it drives down interest rates, there are also negative consequences.
Many student loan lenders pay websites like this one to promote their companies. As a result, many websites will rank lenders according to who pays the most. Additionally, many sites will only include the lenders that are willing to pay to be listed.
If a site doesn’t disclose how lenders are ranked, it should be a red flag to borrowers. If the rankings only include a few lenders, it should be a red flag.
How the Student Loan Sherpa Works to Earn Trust
This site was created in February 2013. It has been built for the long haul.
Making a quick dollar at the expense of providing helpful information, may generate more money in the short-term, but in the long run, it is bad for business.
Visitors to the site may notice that I prominently include my name and picture on the website. It isn’t because I’m somebody important. I put my name and face on the website because I stand behind all of the words printed on the site. I’ve worked very hard and very carefully to earn a positive reputation in the world of student loans, and I will not jeopardize it by trying to make a quick buck.
I try to review and rank all national lenders and provide readers my honest feedback. The goal is to empower all readers to be better-educated consumers and to help those same readers make smart decisions.
Adjustments to the Refinance Rankings
Companies will occasionally move up and down the rankings.
This happens as new information becomes available.
Sometimes lenders raise rates, so they get bumped down the rankings. Other times, lenders start approving borrowers more frequently, so they move up the rankings.
Lender underwriting terms and interest rates are always changing. As these changes happen, they are hopefully reflected in the rankings.
Rankings are typically updated at the beginning of each month.
The Current Rankings
At present, the top refinance lenders are the following:
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