What Is a Student Loan Refinance?
Student loan refinancing replaces existing student loans with a new single loan from a private lender — ideally at a lower rate. It can reduce monthly payments and save thousands in total interest. However, refinancing federal loans means losing federal benefits like IDR and PSLF.
Student Loan Refinance Rates & Terms
Refinance rates: 3.5-9% fixed, 3-8% variable (2026). Rates depend on credit score, income, degree, and loan amount. Terms: 5, 7, 10, 15, or 20 years. Top-tier borrowers (740+ credit) get the best rates.
How Does a Student Loan Refinance Work?
A private lender pays off your existing loans and issues a new loan with new terms. Key savings come from a lower rate. Our calculator shows break-even analysis after accounting for fees.
Key Features of Our Student Loan Refinance
Side-by-Side Comparison
Compare current vs. refinanced loan
Lifetime Savings
See total interest savings
Break-Even Analysis
How long to recoup refinancing costs
✅ Pros
- Lower interest rate = lower total cost
- Simplify multiple loans into one payment
- Release a cosigner
- Choose shorter term to pay faster
⚠️ Cons
- Lose federal protections (IDR, PSLF)
- Variable-rate loans risk rate increases
- Need good credit and income
- Extending term can increase total interest
Student Loan Refinance vs Alternatives
Student Loan Refinance vs Income-Driven Repayment (Federal)
Federal IDR caps payments at 10-20% of income with forgiveness after 20-25 years. Refinancing eliminates these options. Keep federal loans for PSLF or unstable income.
Student Loan Refinance vs Federal Loan Consolidation
Combines federal loans into one with weighted-average rate. Simplifies payments but doesn't save on interest. Private refinancing offers rate reduction but loses protections.
How to Qualify for a Student Loan Refinance
Lenders look for: credit score 650+ (700+ for best rates), stable income (DTI under 40-50%), degree completion (bachelor's+ preferred), US citizenship/permanent residency. Cosigner may help.