When to Refinance Student Loans

Refinance as soon as you have good credit and a stable income to get a lower rate that saves you the most money.
Brianna McGurranJun 14, 2021
When to Refinance Student Loans

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Generally, the sooner you refinance student loans, the better.

When you refinance, a lender pays off your existing loans with a new one at a lower interest rate. That will save you money in the long run — and from the very first payment.

When to depends on whether you’ll find a rate that makes a difference in your life. A $30,000 private student loan with an 8% interest rate, for example, will give you a $364 monthly payment over 10 years. Refinancing to a 10-year loan term at 5% interest will save you $5,494 in total and $46 per month — enough to make a dent in an electricity, cable or phone bill.


Not everyone . You typically need a college degree, good credit and an income that lets you comfortably afford your expenses and debt payments. If you meet these requirements, consider refinancing in these circumstances:

Readers also ask

You generally can't or shouldn't refinance if:

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