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How Often Should You Refinance Student Loans?
Consider refinancing student loans as often as your income or credit score improves or interest rates fall to get more favorable terms.
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How is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She cohosts and produces Money News segments of NerdWallet's Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor's degree in journalism from Purchase College, State University of New York.
Des Toups was a lead assigning editor who supported the student loans and auto loans teams. He had decades of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing to side hustles.
Trea S. Branch is a former NerdWallet writer focused on student loan refinancing. She holds a degree in economics from the University of Michigan and a degree in business from the University of Notre Dame. Trea shared her own student loan payoff journey through a blog, which turned into a personal finance coaching business. Her goal has been to empower anyone overwhelmed by student debt.
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You can refinance your student loans multiple times, especially as your finances improve or private lenders offer lower interest rates.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.95-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Variable APR
5.88-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
There are no origination, prepayment or other fees associated with a student loan refinance. So if you can find a lower interest rate, you can save yourself money each time.
Refinancing private student loans is often a no-brainer if you qualify for better loan terms. These loans are already ineligible for federal relief programs.
When you refinance, you trade in multiple student loans for one, new private loan ideally with a lower interest rate. A lower rate can save you money over time by decreasing the amount you pay in interest. The lower the interest rate, the more you can save.
For example, let's say you graduate owing $40,000 at an 11% interest rate. On a standard 10-year repayment plan, you'll pay $551 every month and $26,120 in total interest by the time the loan is repaid.
But you can refinance student loans immediately after college. Refinancing the above debt to a 7.5% interest rate — still on a 10-year repayment plan — will save you $76 each month and $9,143 in total interest over the life of the loan.
And as interest rates drop, you earn more money or continue building credit, you may qualify for even better rates.
Is it bad to refinance student loans multiple times?
It’s not bad to refinance student loans multiple times if it'll save you money or result in a more manageable payment.
The biggest downside to refinancing often is the “hard” credit check that happens as lenders pull your credit report. Too many hard inquiries can lower your credit score.
Still, it's in your best interest to look at multiple lenders for the lowest rate possible.
You can limit the impact on your credit score by shopping around within a short window — typically up to 45 days — or prequalifying with multiple lenders before officially applying. Prequalifying will show you what rate you qualify for without impacting your credit score.
You should refinance your student loans if you qualify for lower interest rates. To qualify for the lowest rates — and the biggest savings — you’ll need an excellent credit score, clean credit history and a relatively low debt-to-income ratio.
If you have federal loans and are struggling to make consistent payments, refinancing would disqualify you from more helpful programs. Instead, consider federal student loan consolidation or an income-driven repayment plan.
Yes, if you qualify for a lower interest rate. With a lower rate, you’ll have a lower monthly payment, freeing up cash for other expenses. You could also choose a shorter repayment schedule, which will help you become debt-free faster and save money in interest long-term.
If you have bad credit or low income, the lender may require you to apply with a qualifying co-signer. If you're facing financial difficulties, speak with your lender or servicer about ways to lower your payment or interest rate.
