Student Loan Refinance Calculator
Savings from refinancing student loans at a lower rate, the hidden cost of a longer term, what the same term or your current payment would save, fee break-even and the federal protections you give up.
| Current: payment / remaining interest | — |
|---|---|
| Refinanced: payment / total interest + fee | — |
| Monthly change | — |
| Lifetime change | — |
| Same term at the new rate | — |
| Keep the current payment at the new rate | — |
| Break-even on the fee | — |
In short
Refinancing a student loan saves money when the rate falls and the term does not grow: $45,000 at 7.5% with 96 months left costs $625 a month and $14,978 of interest; at 5.4% over 120 months the payment drops to $486 but only $1,641 is saved, while the same 96-month term saves $4,461 and keeping the $625 payment saves $5,467 — and refinancing US federal loans privately permanently forfeits income-driven repayment, PSLF and forbearance.
Who this is for: Graduates with private or federal student loans comparing a refinance offer, especially those tempted by a lower payment over a longer term.
Should you refinance your student loans?
Refinancing replaces your loan with a new one at a lower rate — the only reason to do it. The saving is real when the rate falls and the term does not grow; stretching the term lowers the payment but can raise the total cost even at a lower rate, which is why the calculator shows three paths: the lender's offer, the same remaining term at the new rate, and keeping your current payment on the new loan (the fastest, cheapest route).
For US federal loans the decision is not only arithmetic: refinancing privately permanently forfeits income-driven repayment, PSLF, deferment, forbearance and the discharge on death or disability. Borrowers in public service, with unstable income or with balances large relative to income should usually keep federal loans even at a higher rate.
See also: Student Loan Payoff Calculator, Student Loan RAP Calculator, Debt Consolidation Calculator — Any Currency.
Assumptions
- Current loan amortised at its rate over the months remaining; refinanced loan = balance × (1 + fee) at the new rate over the new term.
- Three comparisons: the offer as quoted, the same remaining term at the new rate, and the current payment applied to the new loan.
- Fixed rates throughout; interest capitalisation, grace periods and income-driven plans are not modelled.
- Federal-loan option only changes the warning text, not the arithmetic.
Worked example
Current: $625 a month, $14,978 of remaining interest. Offer: $486 a month over 120 months, $13,337 interest — saves $139 a month but only $1,641 overall because of the two extra years. Same 96-month term at 5.4%: $578 a month, $10,517 interest — $4,461 saved. Keep paying $625 at 5.4%: cleared in 88 months with $9,511 interest — $5,468 saved and 8 months early.
Frequently asked questions
Is refinancing the same as consolidation?
No. Federal Direct Consolidation combines loans at the weighted average rate and keeps federal protections; refinancing is a new private loan at a market rate.
What rate can I get?
Depends on credit score, income, debt-to-income ratio and sometimes degree; fixed rates in 2026 run roughly 4–10% for strong profiles. A co-signer helps.
Fixed or variable?
Variable starts lower and can rise with the index; choose fixed unless you will repay within a couple of years.
Can I refinance more than once?
Yes — there is usually no fee and no limit, so re-shop whenever rates or your credit improve.
Does refinancing hurt my credit?
A small temporary dip from the inquiry and new account; on-time payments restore it.
What do I lose on federal loans?
Income-driven plans, PSLF and other forgiveness, deferment, forbearance, and death/disability discharge — irreversibly.
Can I refinance Parent PLUS loans?
Yes, privately, in the parent’s or (with some lenders) the student’s name — but the same loss of federal protections applies.
Is student loan interest still deductible after refinancing?
Yes, up to $2,500 a year of interest on qualified education loans, subject to income limits, whether federal or private.
Related calculators
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