Student Loan Refinance Calculator

Refinancing can make sense if you can secure a lower interest rate than you currently have, which reduces your monthly payment and the total amount you pay over time. However, if you have federal student loans, refinancing with a private lender means losing access to federal benefits like income-driven repayment plans, Public Service Loan Forgiveness, and deferment options. Weigh the interest savings against any benefits you'd forfeit before deciding.

Your savings depend on your remaining balance, the difference between your current and new interest rates, and your new repayment term. Even a 1–2% rate reduction on a $30,000 balance can save thousands of dollars in total interest. Use this calculator to see the exact numbers for your situation — enter your current loan details and your prospective new rate to get a clear side-by-side comparison.

Lenders typically look at your credit score, income, employment history, and debt-to-income ratio. Most refinance lenders prefer a credit score of 650 or higher, though the best rates usually go to borrowers with scores above 700. If your credit has improved since you took out your original loans, you're likely in a stronger position to qualify for a competitive rate.

Refinancing is best pursued when you have a steady income and an emergency fund in place, since it locks you into a new private loan without the safety nets federal loans provide. If your income is variable or you anticipate financial hardship, you may want to keep federal loan protections rather than refinancing. A stable job and good credit are the clearest signals you're ready.

A good refinance rate depends on the current lending environment and your personal credit profile. Historically, refinance rates have ranged from around 3% to 8% for well-qualified borrowers. The best strategy is to prequalify with multiple lenders — most offer a soft credit check that won't affect your score — so you can compare real offers before committing.

It can, but it doesn't have to. You can choose a new loan term that matches or is shorter than your remaining term to pay off debt faster while still securing a lower rate. Choosing a longer term will lower your monthly payment but typically increases the total interest you pay. The calculator above lets you try different term lengths so you can find the right balance.

Refinancing replaces your existing loans with a new private loan, ideally at a lower interest rate, and can combine multiple loans into one. Federal loan consolidation, on the other hand, merges federal loans into a single Direct Consolidation Loan at a weighted average interest rate — it doesn't lower your rate. Only private refinancing has the potential to reduce your interest costs.

Yes, most private refinance lenders allow you to combine federal and private student loans into a single new loan. However, once federal loans are refinanced with a private lender, they permanently lose federal protections such as income-driven repayment, forgiveness programs, and forbearance options. Consider keeping federal loans separate if you might need those benefits.