How it works
Refinancing replaces your student loans with a new private loan at a new rate and term. The calculator compares the rest of your current loan with the new one: the monthly payment, the interest you'd still pay, and the difference after any fees. A lower rate saves money; a longer term lowers the payment but can add interest.
Worked example
You owe $35,000 at 6.8% with 10 years left: $402.78 a month and $13,334 of interest still to pay.
Refinance at 5.2% over another 10 years and the payment falls to $374.66, with $9,959 of interest: $3,375 saved. Choose 7 years and you pay $497.98 a month but save $6,503. Stretch it to 15 years and the payment drops to $280.44, yet you pay $2,145 more in interest than if you'd kept your loan.
Federal loans: what you'd give up
The CFPB and Federal Student Aid both warn that moving federal loans to a private lender is a one-way trip. You lose income-driven repayment plans, federal forgiveness programs such as Public Service Loan Forgiveness and teacher loan forgiveness, and federal deferment and forbearance. If you might need any of those, refinance only your private loans, or wait.
Things to know
- Your rate depends on your credit and income. A creditworthy cosigner can lower it. Checking rates with most lenders is a soft credit check.
- Fixed or variable. A variable rate may start lower but can rise; a fixed rate keeps the payment you see here.
- You can refinance again if rates fall or your credit improves, as private refinance loans usually have no prepayment penalty.
Questions people ask
Is refinancing the same as federal consolidation?
No. A federal Direct Consolidation Loan combines federal loans into one federal loan at their weighted average rate (rounded up to the nearest eighth of a percent), keeping federal benefits. Refinancing is a new private loan that can lower the rate but ends federal benefits.
When does refinancing make sense?
Usually when you have private loans or high-rate federal loans, steady income, good credit, and no plans to use income-driven repayment or forgiveness. The calculator shows how much a lower rate is worth for your balance.
What about paying extra instead?
Extra payments cut interest without giving anything up. The student loan calculator shows what an extra payment each month saves.
Sources
- Consumer Financial Protection Bureau: should I consolidate or refinance my student loans?
- Federal Student Aid: should I refinance my federal student loans into a private loan?
Reviewed September 29, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.