When refinancing student loans makes sense
Refinancing replaces one or more student loans with a new private loan, ideally at a lower interest rate. It tends to pay off when:
- Your credit score and income have improved since you borrowed.
- You have high-rate private loans, or federal Grad PLUS loans with high fixed rates.
- You have a stable job and don't expect to need income-driven repayment or forgiveness.
The trade-off with federal loans
Refinancing federal loans with a private lender is permanent. You give up income-driven repayment, Public Service Loan Forgiveness, generous deferment and forbearance, and any future federal relief. If you work in public service or your income is uncertain, keep federal loans federal and consider refinancing only private loans.
Watch the term, not just the payment
A lower payment doesn't always mean savings. Extending from 9 to 15 years at a slightly lower rate can lower your monthly payment while increasing total interest. The calculator shows both so you can see the real trade-off.
Fixed vs variable rates
Variable rates usually start lower but can rise with market rates. They suit people who plan to repay aggressively within a few years. Fixed rates give certainty for longer terms.
Frequently asked questions
Does refinancing hurt my credit?
Can I refinance federal and private loans together?
How much can I save by refinancing?
Last reviewed: 2026-10-09