Refinancing can lower your rate, your payment, or both. Compare your current loan with a new offer and see the monthly and lifetime difference.
Refinancing a student loan replaces it with a new private loan at a different rate and term. This calculator compares your current loan with a new offer, showing the change in monthly payment and the difference in total cost over the life of each.
Refinancing can lower your rate if your credit and income have improved since you first borrowed, cutting both the payment and the total interest. A shorter term saves the most interest; a longer term lowers the payment but usually raises lifetime cost. Compare the total cost of each option, not just the monthly figure, to see the real tradeoff.
Refinancing federal loans into a private loan permanently gives up federal benefits: income-driven repayment, deferment and forbearance options, and potential forgiveness programs. For borrowers with stable income and no need for those protections, a lower private rate can be worth it. For others, keeping federal loans and their safety nets is the safer choice.
Only if you are confident you will not need federal protections like income-driven repayment or forgiveness, since refinancing to a private loan gives those up permanently.
It can, through a lower rate or a longer term. A longer term reduces the monthly payment but usually increases the total interest you pay.
A rate check is usually a soft pull, but formally applying triggers a hard inquiry that can dip your score briefly. The long-term effect is generally small.
See the exact formula and a worked example on our methodology page.