Should I Refinance My Student Loans?

The Short Answer

Refinance if you have private loans (or federal loans you're sure you won't need protections for), good credit, stable income, and can lock a meaningfully lower rate. Don't refinance federal loans if you might use income-driven repayment, forbearance, or forgiveness — refinancing into a private loan gives those up permanently.

Estimate Your Refinancing Savings

Start with the numbers. Enter your current loan to see how much you could save at lower rates:

When Refinancing Makes Sense

• You have private student loans. Private loans have no federal protections to lose, so a lower rate is almost always a win if you qualify.
• Your rate is high. If you're paying 8-13% (common on PLUS or private loans), even a 2% reduction saves thousands.
• You have strong, stable income and good credit. Lenders reserve the best rates for borrowers with 720+ scores and a healthy debt-to-income ratio.
• You won't pursue forgiveness. If PSLF and income-driven forgiveness aren't part of your plan, you're not giving up much by leaving the federal system.

When You Should NOT Refinance

• You may need income-driven repayment. Private lenders don't cap payments at a percentage of your income. If your income could drop, keep federal flexibility.
• You're pursuing PSLF or IDR forgiveness. Refinancing federal loans permanently disqualifies them from forgiveness programs.
• Your credit or income is shaky. You may not qualify for a rate low enough to justify losing federal benefits.
• You value federal forbearance and deferment. Federal loans offer generous hardship options private lenders rarely match.

Federal Protections You Give Up by Refinancing

How to Refinance Step by Step

1. Check your credit and income. Aim for a score in the 700s and a debt-to-income ratio under ~50%.
2. Get prequalified rates from multiple lenders. Most use a soft pull, so comparing won't hurt your score. See our refinance rate comparison.
3. Compare the total cost, not just the monthly payment. A longer term lowers payments but can raise total interest.
4. Pick fixed vs. variable. Fixed rates are predictable; variable can start lower but may rise.
5. Apply and keep paying your current loans until the refinance funds and the old balance shows paid in full.

Compare Lenders

See in-depth reviews of the top student loan refinance lenders: SoFi, Earnest, and Credible. Or run the repayment plan comparison first if you're weighing federal options against refinancing.