Student Loans
Student Loan Refinance Calculator
By Josimar Nascimento, founder of CalcPier. Rates from Department of Education and Federal Reserve data. Read our methodology.
Compare your current student loan to a refinance offer. See monthly payment change, total interest across both scenarios, and the break-even month if fees apply.
Current Loan
Total outstanding student loan balance.
Direct Unsubsidized: 6.39% undergraduate, 7.94% graduate (2025-2026). Private loans vary.
Standard repayment is 120 months (10 years).
New Loan Terms
2026 range: 4.5%-6.5% for strong credit.
Longer terms lower the payment but increase total interest.
Most refi lenders charge 0% on student loans.
Total Savings
$0
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Total Interest Comparison
Insights
When Refinancing Student Loans Is a Clear Win
Refinancing replaces one or more student loans with a single new loan at a lower interest rate. The math is straightforward: if the new rate is meaningfully lower and the term is comparable, the borrower saves on total interest. A 1% rate reduction on a $50,000 balance over 10 years saves approximately $3,300. A 2% reduction saves roughly $6,500.
The strategic decision is not just about rate. It is about what federal loans include that private loans do not. [Income-driven repayment (IDR)](https://studentaid.gov/manage-loans/repayment/plans/income-driven), [Public Service Loan Forgiveness (PSLF)](https://studentaid.gov/pslf/), deferment, forbearance, and death/disability discharge are all federal-only protections. Refinancing with a private lender permanently forfeits them.
Who Should Not Refinance
Borrowers pursuing PSLF should never refinance federal loans. The program forgives remaining balances after 120 qualifying payments for government and nonprofit employees. Refinancing restarts the clock and eliminates eligibility entirely. For a borrower with $80,000 in federal loans pursuing PSLF, refinancing can cost tens of thousands in forfeited forgiveness.
Borrowers on income-driven repayment plans with low current payments also tend to lose by refinancing. IDR caps payments at 10% to 20% of discretionary income, and any remaining balance after 20 to 25 years is forgiven (with a tax event). A private refinance locks in a higher monthly payment even at a lower rate.
Who Should Refinance
High-income borrowers with stable private-sector jobs are the ideal refinance profile. A physician, engineer, or software developer with $150,000 in student loans and $200,000 annual income, on a standard 10-year plan at 6.5%, saves significantly by refinancing to 5.0% or lower. The forfeited protections are unlikely to be used given the income level.
Borrowers with private student loans only also benefit with no trade-off. Private loans have no IDR, no PSLF, and no federal forbearance. Refinancing a private loan at a lower rate is a pure win. The calculator applies the same math regardless of loan origin, but the strategic decision is different for federal vs private.
Fixed vs Variable Rates
Fixed rates lock in the interest rate for the life of the loan. Variable rates are tied to market benchmarks (usually SOFR or Prime) and adjust monthly or quarterly. Variable rates start 1 to 2 points lower than fixed, but carry rate risk. In a declining rate environment, variable wins. In a rising environment, fixed wins.
For loans over $50,000 with terms over 10 years, fixed rates are the safer default. The rate certainty is worth the 1-point premium. For shorter terms (5-7 years) or smaller balances, variable rates can work if the borrower can absorb rate increases. The calculator supports both — just input the rate you would commit to.
Term Length Trade-off
Extending the term lowers the monthly payment but increases total interest. A $40,000 balance at 5% over 10 years costs $10,900 in total interest. The same balance at the same rate over 15 years costs $16,900 in interest — 55% more — but the monthly payment drops from $424 to $316. The monthly cash flow relief comes at a real cost.
The right term depends on the borrower's income trajectory and competing financial goals. A borrower focused on maximizing retirement contributions may prefer the 15-year term for cash flow reasons. A borrower focused on debt elimination prefers the 10-year term or shorter. The calculator shows both the monthly and total-cost impact so the trade-off is explicit.
Co-signers and Eligibility
Borrowers below 650 credit usually need a co-signer to access the best refinance rates. A co-signer with 750+ credit and stable income can reduce the approved rate by 2 to 4 points. The co-signer is legally responsible for the debt if the borrower defaults, and the loan appears on the co-signer's credit report.
Some lenders offer co-signer release after 24 to 36 months of on-time payments. Others do not. If you plan to use a co-signer, confirm the release policy before signing. A co-signer who cannot be released is on the loan for the full term regardless of the borrower's payment history.
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Frequently asked questions
Should I refinance my federal student loans?
It depends on your income trajectory and forgiveness eligibility. Refinancing a federal loan with a private lender removes access to income-driven repayment, Public Service Loan Forgiveness (PSLF), and federal forbearance programs. If you work in public service, nonprofit, or government, do not refinance. If you have stable private-sector income and no forgiveness path, refinancing at a lower rate is often a clear win.
What is the average student loan refinance rate in 2026?
As of October 2026, refinance rates for 10-year fixed terms range from 4.99% to 7.99% for borrowers with 700+ credit. Variable rates start lower (4.25%-6.5%) but carry rate risk. Borrowers below 680 credit usually see rates 2 to 4 points higher. Federal Direct Unsubsidized Loans are at 6.39% for undergraduates and 7.94% for graduate students for the 2025-2026 academic year ([Federal Student Aid](https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-05-30/interest-rates-direct-loans-first-disbursed-between-july-1-2025-and-june-30-2026)).
How much does refinancing save?
A $40,000 balance at 6.5% over 10 years costs $54,500 in total payments. Refinancing at 5.0% over the same term drops that to $50,900 — a savings of $3,600. The savings scale linearly with balance and rate reduction. A 1% rate cut on a $100,000 balance over 15 years saves roughly $12,000 in interest. Use the calculator above for your specific numbers.
Can I refinance federal and private loans together?
Yes. Most refinance lenders allow you to consolidate federal and private loans into a single new private loan. This simplifies payments but triggers the same loss of federal protections. If you are pursuing PSLF on federal loans, keep them separate and refinance only the private ones.
Does refinancing student loans hurt my credit score?
Refinancing triggers a hard inquiry, which lowers the score by 5 to 10 points temporarily. The new account also reduces your average credit age when it appears on the report. Both effects are temporary and reverse within 6 to 12 months as you make on-time payments. The interest savings on a large balance typically outweigh the temporary dip.
What credit score do I need to refinance student loans?
Most refinance lenders require a minimum score of 650. The best rates go to borrowers at 750+. Borrowers below 650 can still qualify with a co-signer who has strong credit. Income matters as much as score — lenders want to see debt-to-income below 40% and verifiable income of at least $30,000 to $40,000 per year.
Disclaimer: This calculator and the content on this page are for educational purposes only. They do not constitute financial, legal, or tax advice. Rates, loan limits, and eligibility criteria vary by lender, location, and borrower profile. Always consult a licensed financial professional before making borrowing decisions. CalcPier is independent and not affiliated with any lender listed on this page.
