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Student Loan Refinance Calculator

Calculate student loan refinance savings and compare federal vs private repayment trade-offs

Frequently Asked Questions

Should I refinance my federal student loans?

Refinancing federal loans into private loans is a one-way door: you permanently lose access to income-driven repayment, PSLF, federal forbearance, and discharge protections. Only refinance federal loans if you have stable high income, no PSLF interest, and the rate savings clearly justify giving up those protections. For private loans already, refinancing into a better private offer is almost always a win.

When does student loan refinancing make sense?

When you have private loans with high rates (10%+), federal loans where you have no interest in PSLF or IDR (e.g., high-earning physicians, lawyers in private practice), or when current rates beat your weighted-average rate by 1.5%+ and you have 5+ years remaining. Variable-rate refinancing carries rate-rise risk; fixed rates lock in certainty.

What credit score do I need to refinance?

Top refinance lenders (SoFi, Earnest, Splash Financial, Laurel Road) typically require 680+ FICO with cleaner credit getting the best rates. Best rates (under 5%) usually require 750+ with strong income and low debt-to-income (under 40%). Most have minimum income thresholds of $35,000-$60,000. A creditworthy cosigner can unlock lower rates if you don't qualify alone.

Are there refinance fees?

No - reputable student loan refinance lenders charge no origination fees, no application fees, and no prepayment penalties. The whole process is free; lenders make money on interest over the loan life. Be skeptical of any "refinance lender" charging upfront fees - likely a scam or affiliate loan-modification operation.

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Estimates only. Not financial advice.

Financial Disclaimer: Estimates only. Not financial advice.

This calculator provides estimates for informational purposes only. Actual financial outcomes depend on market conditions, personal circumstances, and decisions. Not financial advice. Consult a certified financial planner before making financial decisions affecting your future.

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How This Calculator Works

Enter your current loan balance, the weighted-average interest rate across all your loans, your current monthly payment, and how many months remain on that loan. Then enter the rate and term offered by the new lender. The calculator compares your existing repayment stream against a freshly amortizing loan at the new rate, showing new payment, monthly savings, and lifetime interest saved or added.

The loan type and PSLF fields do not affect the math - they trigger a warning when you indicate federal loans, because refinancing to a private lender is a one-way door that permanently forfeits federal protections.

The Math Behind the Comparison

New monthly payment = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the balance, r is the monthly interest rate (annual rate ÷ 12), and n is the new term in months. Current total cost = your current payment × remaining months. Interest paid under each scenario = total cost − principal balance. Interest saved = current remaining interest − new total interest.

Worked Example

A $45,000 balance at 6.8% with 108 months left and a $520 monthly payment has a remaining cost of $520 × 108 = $56,160, of which $11,160 is interest. Refinancing to 5.25% over 120 months produces a new payment of about $482 (≈$38/month savings) and ≈$12,840 in total interest - saving $38/month but costing $1,680 more interest overall because the term is 12 months longer. To truly save on both, you need a rate cut large enough to offset the term extension, or a shorter new term.

When Refinancing Makes Sense

High-rate private loans: If your private loans carry 8–12% rates from 2008–2015 originations and your credit score has improved, refinancing to 5–6% can save tens of thousands of dollars.
Stable, high income: Refinancing rewards borrowers who can comfortably make fixed payments and have no need for payment flexibility.
No federal benefits in your future: If you work in the private sector, have no income volatility, and will never qualify for PSLF, income-driven plans offer you little that a refinanced private loan does not.
Shorter payoff horizon: Refinancing to a shorter term (e.g., from 20 years remaining to 10 years) eliminates the term-extension trap and can save significant interest even with a modest rate cut.

The Federal Loan Warning - Why It Matters

Refinancing federal student loans with a private lender converts them to private debt permanently. There is no way to undo this. You give up:

Income-driven repayment (IDR): IBR, SAVE, PAYE, and ICR cap monthly payments at 5–10% of discretionary income and forgive balances after 20–25 years. For borrowers with high debt relative to income, this can be worth far more than any rate savings.
Public Service Loan Forgiveness (PSLF): Government employees, teachers, nonprofit workers, military, and qualifying public service workers can receive full tax-free forgiveness after 120 qualifying payments. Refinancing one day before forgiveness forfeits the entire remaining balance.
Federal forbearance and deferment: Economic hardship, unemployment, cancer treatment, and military deployment all qualify for federal pause options. Private lenders offer more limited and less generous forbearance.
Death and disability discharge: Federal loans are discharged tax-free on death or total and permanent disability. Private loan policies vary and some pursue estates or cosigners.
Future congressional relief: Federal loans are the only loans eligible for any future executive or legislative forgiveness programs.

The rule of thumb: only refinance the federal balance you are absolutely certain you will never need these protections for - which, for most people with federal debt, is a very narrow set of circumstances.

Fixed vs. Variable Rate

Private refinance lenders offer both fixed and variable rates. Variable rates (indexed to SOFR) are typically 0.5–1.5% lower at origination but can rise significantly. SOFR-based rates for student loans rose from under 2% in early 2022 to over 5.5% by late 2023 - borrowers who chose variable rates on 15-year payoffs were exposed to that full swing. Fixed rates trade a higher starting payment for certainty across the payoff period.

Variable rates can win on a 3–5 year aggressive payoff in a flat or falling rate environment.
Fixed rates nearly always win on 10+ year terms where rate cycles are unpredictable.
Some lenders offer hybrid options (fixed for 5 years, then variable) - read terms carefully.

How to Compare Lenders

Most lenders (SoFi, Earnest, Laurel Road, ELFI, Splash Financial, CommonBond) offer soft-credit-pull pre-qualification that does not affect your score. Run quotes from at least three lenders. Compare:

APR (not just the nominal rate) - origination fees are rare on student refinances but roll them in if present
Forbearance policy - length, number of months allowed, and conditions
Cosigner release options if you have a cosigner on the original loan
Autopay discount - typically 0.25% and usually automatically applied on approved quotes
Prepayment penalties - there should be none; avoid any lender that charges them

Credit Score Impact

Pre-qualification uses a soft pull (no score impact). Submitting a formal application triggers a hard pull that drops your score by a few points temporarily. Most scoring models treat multiple student loan hard inquiries within a 14–45 day window as a single inquiry (rate-shopping protection) - so applying to several lenders within that window minimizes damage. The new loan will appear on your credit report and slightly lower average account age, but on-time payments quickly recover both.

Frequently Asked Questions

How much of a rate drop justifies refinancing?

A common rule of thumb is at least 1 percentage point on a balance of $30,000 or more with at least five years remaining, but the exact threshold depends on the term change. Use the total interest saved column - not the monthly savings - as your primary metric, since a longer new term can produce monthly savings while costing more lifetime interest.

Can I refinance more than once?

Yes. There is no limit on private student loan refinancing. If rates drop after you refinance, or your credit score improves significantly, you can refinance again. Each refinance resets your loan term, so if you extend to 10 years each time you refinance, you can end up paying for much longer than necessary.

What credit score do I need?

Most lenders require a minimum of 650–680 FICO, with the best rates reserved for scores above 750. Debt-to-income ratio matters equally - most lenders want your total monthly debt payments below 43–50% of gross monthly income. A creditworthy cosigner can help if your score or income is borderline.

Does refinancing affect my tax deduction?

The student loan interest deduction (up to $2,500/year) applies to both federal and private student loans used for qualified education expenses, so refinancing to a private loan does not eliminate it. Income phase-outs apply ($75,000–$90,000 single, $155,000–$185,000 MFJ in 2026).

Should I refinance parent PLUS loans?

Parent PLUS loans are federal and subject to the same warnings. However, PLUS loans are not eligible for the most generous income-driven plans (SAVE, PAYE), making the cost of refinancing lower in practice. A parent PLUS refinance into a private loan at a lower rate is a more defensible decision than refinancing a child's federal loans with IDR eligibility.