FinanceCalcs
Student Loan Refinance Calculator
Find out if refinancing your student loans saves money. Enter your current loan details and a new rate offer to see monthly savings, total interest saved, and the break-even month.
Supports single loans or a combined balance — includes a full month-by-month comparison schedule.
Student Loan Refinance Calculator
Monthly Savings: $0
- Current Loan
- New Loan
"An investment in knowledge pays the best interest — but that doesn't mean you should overpay for the loan."
-- Adapted from Benjamin Franklin
How student loan refinancing works
Refinancing replaces your existing student loan(s) with a new private loan at a new interest rate and term. The new lender pays off your existing balance, and you make payments on the new loan. If the new rate is lower, you pay less interest over the life of the loan.
The break-even month is when cumulative monthly savings surpass any upfront fees. Most private lenders charge no refinancing fees — so the break-even is typically immediate if the new rate is lower.
The critical consideration for federal loans: refinancing into a private loan permanently eliminates access to income-driven repayment plans (IBR, PAYE, SAVE), Public Service Loan Forgiveness, federal deferment and forbearance, and interest subsidies. This cannot be undone. Only refinance federal loans if you have stable income, are not pursuing PSLF, and are confident you will not need these protections.
lightbulb Example Refinance Scenario
Suppose you have $42,000 in student loans at 6.8% with 96 months remaining — a payment of about $627/month. You qualify to refinance at 4.5% over 10 years.
Your new payment would be approximately $436/month — saving $191/month. Total interest on the current path: ~$18,200. Total interest on the new loan: ~$10,300. Interest saved: ~$7,900.
With no refinancing fees, the break-even is immediate. Over 8 years (the remaining term of the current loan) you would save roughly $18,300 in total payments. The new loan extends 2 years beyond that, adding back some interest — the calculator shows the full picture of both scenarios.
Student Loan Refinance FAQs
What credit score do I need to refinance student loans?
Most private lenders require a credit score of 650 or higher, with the best rates typically reserved for scores above 700–720. Lenders also consider debt-to-income ratio, employment history, and degree type. A cosigner with strong credit can help qualify if your score is borderline.
When does refinancing student loans make sense?
Refinancing makes the most sense for borrowers with: private loans at high rates, federal loans you're certain you won't need IDR or PSLF for, a strong credit score that has improved since graduation, and stable employment with sufficient income. The rate reduction needs to be meaningful — at least 1–2 percentage points to justify the loss of federal protections.
Can I refinance just some of my loans?
Yes. Many borrowers refinance high-rate private loans while keeping federal loans separate to preserve federal protections. You don't have to refinance everything — target the loans where the rate reduction is most significant and the protection tradeoff least costly.
Does refinancing hurt my credit score?
Applying triggers a hard inquiry (typically a few points). Rate shopping with multiple lenders within a 14–30 day window is usually treated as a single inquiry by credit bureaus. Long-term, successfully managing the new loan helps your credit.
Refinancing terminology
Weighted Average Interest Rate
When refinancing multiple loans, use the weighted average rate as your "current rate" input. Calculate it as: sum of (each loan balance × its rate) divided by total balance. Many lenders calculate this for you automatically.
Fixed vs. Variable Rate
Refinanced loans can be fixed (same rate for the life of the loan) or variable (rate changes with a benchmark index). Variable rates start lower but carry risk if rates rise. Fixed rates offer payment certainty. Most borrowers choose fixed for predictability.
Income-Driven Repayment (IDR)
Federal repayment plans (IBR, PAYE, SAVE, ICR) that cap monthly payments at 5–20% of discretionary income and forgive remaining balances after 10–25 years. Permanently unavailable after refinancing into a private loan.
Public Service Loan Forgiveness (PSLF)
Federal program that forgives remaining federal loan balances after 120 qualifying payments while working full-time for a government or nonprofit employer. Only federal Direct Loans qualify. Refinancing into a private loan permanently forfeits PSLF eligibility.
Break-Even Month
The month at which cumulative monthly savings exceed any upfront refinancing costs. Since most student loan refinancing has no fees, the break-even is typically immediate — savings begin with the first payment.
Disclaimer: All calculators on this site are provided for informational and educational purposes only. Results are estimates based on the inputs you provide and mathematical formulas — they do not account for taxes, fees, inflation, risk, or other real-world factors that may affect financial outcomes. Past performance does not guarantee future results. Nothing on this site constitutes financial, investment, legal, or tax advice. Always consult a qualified professional before making financial decisions.
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