Student Loan Refinance Calculator
Use our calculator to determine how much you can save by refinancing your student loan to a lower rate. Plus, learn when it makes sense to refinance.
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Should I refinance my student loans?
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Student loan refinancing means swapping your current student loans for a new loan with a lower interest rate. That could save you money over time.
Whether you should refinance student loans depends on your situation. Consider refinancing your student loans if:
You have private student loans. Private student loans aren't eligible for the same repayment and forgiveness benefits that federal loans have, so you don't risk forfeiting these benefits if you refinance private student loans. Think twice about refinancing federal student loans if there's a chance you'll need income-driven repayment or other forgiveness programs.
Your finances are solid. Qualifying for refinancing requires strong credit and stable income. If there is a chance you won't be able to make payments consistently, reach out to your loan servicer instead of refinancing — or explore benefits like loan forgiveness and other student loan help if you have federal loans.
You would save money. Refinancing can mean a lower interest rate on your loans. Use the student loan refinancing calculator below to estimate how much you could save by refinancing your student loans to a lower rate or shorter loan term.
You can qualify. You generally need a credit score at least in the high 600s and enough income to consistently pay your debts and other expenses. If you don't meet those criteria, you could refinance with a co-signer who does.
How much will refinancing save?
You can potentially save tens of thousands of dollars throughout the life of your loan by refinancing. There are three main benefits to refinancing student loans:
You can get a lower monthly payment, freeing up cash for other expenses.
You can pay off your loan faster, saving you money in interest.
A lower monthly payment decreases your debt-to-income ratio, which can make it easier to qualify for a mortgage or other types of credit.
Unlike refinancing a mortgage, there are typically no origination, application or prepayment fees when refinancing student loans. But read your loan agreement carefully to make sure you understand any costs you could incur in the future, like late fees.
If you decide to refinance student loans, compare multiple lenders to see which one offers you the lowest interest rate. If you have similar offers, consider lenders with flexible repayment options, a refinance bonus and other perks.
Readers also ask
Will I qualify for student loan refinancing?
Requirements vary among student loan refinance lenders, but you’ll have a good shot at qualifying if you:
Have good credit. At a minimum, you’ll need a score in the mid-600s. Many borrowers who are approved for refinancing have FICO scores in the 700s.
Have enough income to afford your expenses. You can refinance with low income, provided your debt-to-income ratio, or DTI, is solid. DTI is the amount of debt you owe relative to your income. The required debt-to-income ratio for student loan refinancing varies by lender. Many lenders look for DTIs less than 50%, but a DTI below 20% is excellent.
Attended an eligible school. Most refinance lenders require that borrowers attended a school authorized to receive federal aid dollars. Only a few lenders will refinance your loans if you don't have a degree.
If you don’t meet the credit and income requirements for refinancing, you may still qualify if you apply with a co-signer. Contact the lender to find out why your application was rejected, then take steps to meet that requirement, if possible. That may mean building your credit score or paying down other debt to lower your debt-to-income ratio.
Are my finances stable enough to refinance?
If you have federal loans and are struggling to make consistent payments, consider federal student loan consolidation or income-driven repayment instead of refinancing. These options can lower your monthly loan payment and help you avoid default.
If you have private student loans, a stable income will help you qualify for better loan terms. And since private loans are not eligible for federal benefits, there's generally nothing to lose by refinancing.
To find out whether your current student loans are federal or private, log into studentaid.gov. This government website will have all of your federal loans. You can also check your credit report. Loans that are on your credit report but not on studentaid.gov are likely private.
Other student loan calculators
Student loan payoff calculator: Find your debt-free date and see how extra payments can make it arrive faster.
Student loan calculator: Determine your monthly student loan payment based on your interest rate, term length and the amount you borrowed.
Student loan consolidation calculator: Compare your payments under federal loan consolidation plans with your current bills.
Parent PLUS loan calculator: Find out how much you'll pay monthly on federal direct PLUS loans.
Discretionary income calculator: Determine what you would pay under federal income-driven repayment plans.
Weighted average interest rate calculator: Determine the combined interest rate on all your student loans. You’ll need that average to estimate your loan payments under federal loan consolidation programs or to compare student loan refinancing offers.
» See more of NerdWallet's loan calculators