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When you refinance student loans, a lender repays the loans you chose to refinance and issues a new loan for the full amount that has a different interest rate and repayment period.

The goal of student loan refinance is to pay a lower interest rate, especially if your credit history, income, and other financial factors make you eligible for better loan terms than you originally received. That’s why it’s important to make sure you’re saving enough money to make the refinancing worthwhile.

Use the calculator below to estimate your new monthly payment and interest costs and find out how much refinancing your student loans could save you.

Related: Best lenders for student loan refinance

Student Loan Refinancing Calculator

This calculator is most useful if you’ve already received personalized interest rate estimates from lenders. Many lenders offer estimates without the need for a harsh credit check that could otherwise negatively impact your credit score.

However, you can also look at the current refinancing rates and enter an average or probable interest rate without first getting an individual estimate. Remember that the lowest advertised rates are reserved for customers with the highest credit ratings.

Compare refinance rates for personalized student loans

Lasts up to 3 minutes

Is Student Loan Refinance Right For Me?

Consider refinancing your student loan if your financial profile makes you eligible for a lower interest rate than your current rate and if you are comfortable with the terms of your new loan. For example, only private companies offer student loan refinancing. So when you refinance federal loans, you lose important protections like flexible repayment schedules and forgiveness options. If you can reap these benefits in the future, it may be best to just refinance your personal loans. Or skip the refinance and opt for a different one paying off the student loan strategy instead.

How do I know if I qualify for student loan refinance?

Refinance lenders want to make sure you consistently make payments on time. This means that they generally need good or excellent credit, meaning credit in the upper 600s or higher, plus a stable income and low overall debt relative to your income. Specific requirements vary by lender. If you don’t qualify yourself, you can use a co-signer to gain eligibility or receive a lower interest rate than you would otherwise have.

How do I evaluate student loan refinancing offers?

Compare offers from multiple lenders to get the best interest rates and terms on a new student loan. That means not only paying attention to the interest rate you’re getting, but also how many years it will take you to pay off the loan, your monthly payment, and any fees required. While it may be tempting to opt for the lowest monthly payment available, this way you’ll typically end up paying more interest over time, reducing the savings from your new, lower interest rate.

Should I choose a fixed or variable interest rate?

When refinancing student loans, you usually have the option of choosing a fixed or variable interest rate. A fixed rate does not change during the repayment period, while a floating rate is tied to an index such as the prime rate or LIBOR and changes with market fluctuations. Fixed rates are usually a better choice during times when interest rates are generally low, as you are now locking in a low interest rate that will not increase over time.

What are my options if I am not eligible to refinance student loans?

Many borrowers don’t qualify for student loan refinance or decide it’s not the best solution for them. In this case, the alternatives depend on your goals. When you need a lower payment because your loans are unaffordable, refinancing is often not ideal. Instead, consider an income-based federal loan repayment plan that calculates payments based on monthly discretionary income. Or contact your private lender to learn about forbearance options that allow you to pause payments, an interest rate, or a monthly payment reduction for a period of time.

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