Student Loan Refinance Calculator
Enter your balance, your current rate and years left, and a new rate and term. We'll show your new monthly payment, the total interest a lower rate saves, and whether a longer term quietly eats that savings.
Your monthly payment drops $34.68, from $397.42 to $362.73.
- Monthly payment
- $397.42
- Payoff date
- June 2036
- Total interest
- $12,690
- Total paid
- $47,690
- Monthly payment
- $362.73
- Payoff date
- June 2036
- Total interest
- $8,528
- Total paid
- $43,528
How student loan refinancing works
Refinancing replaces one or more existing student loans with a single new private loan at a new interest rate and term. A lender pays off your old balances and you make one payment to them instead. The entire appeal is the rate: if your credit and income have improved since you first borrowed — or if rates have fallen — a refinance can drop your APR by a few points, and on a balance in the tens of thousands, a few points is real money.
Unlike a mortgage refinance, student-loan refinancing from reputable lenders carries no origination fee, no application fee, and no prepayment penalty. That changes the math: there's usually no upfront cost to earn back, so the savings begin immediately rather than after a break-even period. The decision isn't “will I save enough to cover the fees” — it's “is the new rate low enough, and am I giving anything up to get it.”
The rate is only half the story — watch the term
The most common refinancing mistake is judging the offer by its monthly payment alone. Stretching a loan to a longer term lowers the payment because you're spreading the balance over more months — but more months means more interest, and a lower rate doesn't always overcome it.
Say you have $35,000 left at 6.5% with six years to go. Refinance to 4.5% on a fresh 10-year term and your monthly payment drops by well over $200 — a relief on cash flow. But because you've added four years of payments, you'd actually pay more total interest than if you'd kept the original loan. The calculator above catches exactly this: the verdict line tracks lifetime interest, not just the monthly number, so a lower payment that costs more overall shows up in amber, not green.
The reliable rule: to come out ahead on total cost, refinance to a term no longer than the time left on your current loan. If you also want a lower payment, that's the trade-off to make deliberately — lower monthly, higher lifetime — not by accident.
Before you refinance federal loans
Refinancing converts federal loans into a private loan, and that conversion is one-way. You permanently give up the federal benefits attached to those loans:
- Income-driven repayment — payments capped at a percentage of your discretionary income, with any remaining balance forgiven after 20-25 years.
- Public Service Loan Forgiveness — the rest of your balance forgiven tax-free after 120 qualifying payments in government or nonprofit work.
- Deferment and forbearance — federal loans offer far more generous pauses for unemployment, hardship, or returning to school than private lenders do.
For borrowers with stable, comfortable income who won't use these protections, trading them for a lower rate can be worth it. For everyone else — and for anyone whose income might wobble — private loans are the safer thing to refinance, and federal loans are usually better left alone. Run your federal loan through the student loan payoff calculator to see what income-driven repayment would do before you give it up.
Frequently asked questions
Does refinancing student loans cost anything?
Reputable private student-loan refinance lenders charge no application fee, no origination fee, and no prepayment penalty. That's why the break-even on a refinance is usually immediate — there's no upfront cost to recoup, so any monthly savings starts with your first payment. If a lender quotes a fee, enter it in the closing-cost field above and the calculator will show how many months of savings it takes to break even. Be skeptical of any student-loan refinance that charges to originate.
Should I refinance my federal student loans?
Be careful. Refinancing federal loans means converting them to a private loan, which permanently gives up federal protections: income-driven repayment, Public Service Loan Forgiveness, generous deferment and forbearance, and any future federal forgiveness. Those protections have real value if your income is unstable or you work in public service. Refinancing federal debt makes the most sense for borrowers with secure, comfortable income who won't need those safety nets and just want a lower rate. Private loans, which carry none of those benefits, are the cleaner candidates to refinance.
Will a lower rate always save me money?
Not necessarily — the term matters as much as the rate. Refinancing to a lower rate but a longer term can lower your monthly payment while raising your total interest, because you're paying interest over more years. The calculator above flags this: watch the 'lifetime interest saved' figure, not just the monthly payment. If you refinance, picking a term no longer than the years you have left on your current loan is the surest way to come out ahead on total cost.
What credit score do I need to refinance student loans?
Lenders generally look for good-to-excellent credit — often described as the high-600s and up, with the best advertised rates reserved for scores in the 700s — plus steady income and a manageable debt-to-income ratio. Borrowers who don't qualify on their own, including many recent graduates, often add a creditworthy cosigner to get approved or to unlock a lower rate. Most lenders let you check your estimated rate with a soft credit pull that doesn't affect your score before you formally apply.
Can I refinance my student loans more than once?
Yes. There's no limit on how many times you can refinance, and because reputable lenders charge no fees, there's little downside to refinancing again if rates fall or your credit improves. Some borrowers refinance two or three times over the life of a loan as their financial profile strengthens. Each application is a hard credit inquiry, so it's worth comparing several lenders at once rather than applying repeatedly over time.
Should I choose a fixed or variable rate?
A fixed rate locks your interest rate for the life of the loan, so your payment never changes. A variable rate usually starts lower but can rise (or fall) with market rates over time. Fixed is the safer choice if you'll be repaying over many years or want predictable payments. A variable rate can win if you plan to pay the loan off quickly — you capture the lower starting rate before it has much time to move. Run both rates through the calculator above to see the spread in total interest.
Related debt tools
Student Loan Payoff Calculator
Federal vs private, IDR cap, and grace-period capitalization — model your existing loan before refinancing.
Extra Payment Savings
Not ready to refinance? See what an extra $X/month does to your payoff date and interest.
Debt Consolidation Calculator
Refinancing the rest of your debt — compare current balances against one new loan.
Estimates are educational only. The calculator models both loans as fully-amortizing fixed-rate loans and assumes the refinanced balance equals your current balance with no fees rolled in. Actual rates depend on lender underwriting, credit, income, and whether you choose a fixed or variable rate, and are not guaranteed. Refinancing federal loans permanently forfeits federal repayment and forgiveness benefits — verify the terms with the lender before applying.