Student Loan Refinance Calculator - Should I Refinance?
Tool | February 2019

Student Loan Refinance Calculator

See how much money you can save by consolidating and refinancing your federal and private student loans.

Many people juggle half a dozen student loans or more with different repayment terms, interest rates and loan servicers. Refinancing into a single, consolidated loan can reduce your monthly payments and the number of loan servicers you have to deal with, and it can also help lower your overall interest rate, saving you money over the life of your loans.

Refinancing your student loans can save you serious bucks. Use our student loan refinance calculator to determine how much.

New Loan

Unlike the federal government, private lenders will refinance both private and federal student loans into one loan. Assuming you've established a good credit history, you'll likely be able to score a lower interest rate on a private loan than you did during college, and borrowers with stellar credit profiles may be able to get a reduced rate for their federal student loans, too. (Keep in mind that provisions for federal and private student loans differ. You could lose valuable benefits by taking federal loans to a private lender.)

Should I Refinance My Student Loans?

Whether to refinance — and how — depends on the types of student loans you have and what you're trying to accomplish. Start by identifying which of your loans are federally sponsored and which, if any, are private. Review the interest rate on each loan, along with your monthly payment amounts, and see how they fit into your overall budget. Then consider whether you’re looking mostly for convenience, a more flexible repayment plan or a lower interest rate.

If you have good credit, a stable job and steady income, you'll generally benefit from refinancing your private student loans. The higher your credit score and the stronger your overall profile, the lower the interest rate you’ll receive on a private consolidation. With most private lenders, you'll have a choice between a fixed or variable interest rate. Fixed interest rates currently range from about 4% to 10% and variable rates generally range between about 3% to 7%. Some lenders charge an origination fee, typically up to 2% of the amount of the loan; others roll those costs into the quoted interest rate.

You’ll probably be offered repayment terms in five-year increments from five to 25 years, but some lenders will allow you to select your repayment term — say, three years or nine years. And some will sweeten the deal by reducing your interest rate if you agree to a shorter repayment period.

To refinance your student loans with a private lender, start by contacting your current loan servicer and bank, as well as a few other lenders. Get several quotes so you can compare interest rates and terms.

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