The Moment
You are looking at refinancing offers — SoFi at 4.5%, Earnest at 4.75%, your credit union at 5%. Your current loans are at 6-8%. The math says refinancing saves thousands. But the math is not the only consideration.
The Decision Framework
Private student loans — REFINANCE if: - You can get a rate 2%+ lower than your current rate - Your credit score is 700+ (for the best rates) - You have stable income - The remaining balance is $10,000+ (worth the effort) - You are not planning to pursue any federal benefit (not applicable to private loans anyway)
Federal student loans — DO NOT REFINANCE (almost always) Refinancing federal loans into a private loan permanently eliminates: - Income-driven repayment (payments capped at a % of income) - PSLF (potential forgiveness after 10 years) - Deferment and forbearance (payment pause during hardship) - COVID-era payment pause eligibility (if applicable in future) - 20-25 year IDR forgiveness
The only scenario where federal refinancing makes sense: - Your income is high (>$150,000) and stable - You are in private sector (no PSLF path) - Your federal rate is above 6-7% - You can save $5,000+ total by refinancing - You have a fully funded emergency fund (no risk of needing forbearance) - You accept the permanent loss of federal protections
Even then, many financial advisors recommend against it. The insurance value of federal protections exceeds the interest savings for most borrowers.
Run Your Numbers
Enter your loan details to see refinancing savings.
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What to explore next
- →Where can I find the best student loan refinance rates?
- →Should I choose a fixed or variable refinance rate?
- →How do I compare refinance offers?
Frequently Asked Questions
Can I refinance just my private loans and keep federal loans separate?
Yes — this is the recommended approach. Refinance only private loans to the lowest available rate. Keep federal loans on their current terms with all protections intact. Most refinancing lenders allow you to select which loans to include.
How many times can I refinance?
Unlimited. If rates drop or your credit improves, you can refinance again. There is no penalty for refinancing student loans. Each refinance is a new hard inquiry, but rate-shopping within 14-45 days counts as one inquiry.