How this calculator works
Your current loan is amortized over the years left and the new loan over its new term. Lifetime savings are the difference in total interest. A longer term can lower the payment while raising total interest.
Worked example
With the example values below: Lifetime savings, $2,843 (monthly payment changes by −$79.97). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Balance | $45,000 |
| Current rate | 7% |
| Years remaining | 9 yrs |
| New rate | 5.25% |
| New term | 10 years |
How student loan refinancing works
Refinancing replaces one or more student loans with a new private loan, ideally at a lower rate. The new lender pays off the old loans, and you repay the new one under its terms. You can refinance federal loans, private loans or both, and choose a new term, usually 5 to 20 years.
Rates depend on your credit score, income, debt-to-income ratio and the term. Fixed and variable rates are both available.
What you give up by refinancing federal loans
Once refinanced into a private loan, you can't move back to federal. Refinancing private loans carries no such trade-off, so it's usually the easier decision.
- Income-based repayment, including the Repayment Assistance Plan.
- Public Service Loan Forgiveness and other forgiveness programs.
- Federal deferment and forbearance options.
- Discharge for death or total and permanent disability, though some private lenders offer similar terms.
When refinancing makes sense
It's most useful when you have private loans or high-rate federal loans (such as graduate or PLUS loans), steady income, good credit, and no plan to use forgiveness or income-driven repayment. A strong co-signer can help you qualify, and many lenders release co-signers after a period of on-time payments.
Compare total interest, not just the monthly payment. A longer term lowers the payment but can cost more overall even at a lower rate.
Shopping for a refinance
Check rates with several lenders using prequalification, which uses a soft credit check. Look for autopay discounts, no origination fees and hardship forbearance options. If you have federal loans with different rates, the weighted average interest rate calculator shows the blended rate to beat. To compare against a federal option, see the student loan consolidation calculator.
Frequently asked questions
Is it worth refinancing student loans?
It's worth it if you can get a meaningfully lower rate and don't need federal protections such as income-driven repayment or forgiveness. Private loans and high-rate graduate or PLUS loans are the usual candidates.
What credit score do I need to refinance student loans?
Many lenders require about 650 to 680, and the best rates go to scores of 740 or higher with solid income. A co-signer can help if your credit is thinner.
Can I refinance federal student loans?
Yes, with a private lender, but the new loan is private and loses federal benefits like income-driven repayment, forgiveness and federal deferment. You can't reverse it.
What's the difference between refinancing and consolidation?
Federal Direct Consolidation combines federal loans into one federal loan at a weighted average rate rounded up, keeping federal benefits. Refinancing uses a private lender and can lower the rate, but ends federal protections.
Can I refinance student loans more than once?
Yes. There's no limit, and most lenders don't charge fees, so you can refinance again if rates fall or your credit improves.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.