Student Loan Refinance Calculator
Calculate student loan refinance savings, compare rates, and understand federal vs private loan trade-offs. Includes 2026 rates by credit score.
2026 Student Loan Refinance Rates by Credit Score
Typical rates from major lenders (rates vary by lender and terms)
| Credit Score | Fixed Rate | Variable Rate |
|---|---|---|
| Excellent (760+) | 4.49% - 6.24% | 4.99% - 6.74% |
| Good (700-759) | 5.99% - 7.49% | 6.24% - 7.99% |
| Fair (650-699) | 7.49% - 9.99% | 7.99% - 10.49% |
| Poor (600-649) | 9.99% - 12.99% | 10.49% - 13.49% |
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About This Calculator
Should I refinance my student loans? With over $1.77 trillion in outstanding student loan debt and the average borrower carrying $37,850, this question haunts millions of Americans. The Student Loan Refinance Calculator helps you make this critical decision by comparing your current loans against refinance offers - showing monthly payment changes, total interest savings, and the true cost of losing federal protections.
Here's the brutal truth: Refinancing student loans is fundamentally different from refinancing a mortgage or car. Make the wrong choice and you could forfeit life-changing benefits: Public Service Loan Forgiveness (PSLF) worth an average of $66,000, income-driven repayment plans that cap payments at 5-10% of income, and deferment options during hardship. These protections have no dollar equivalent on private loans.
But the math can favor refinancing. As of January 2026, the best refinance rates start as low as 3.99% APR for excellent credit - compared to federal rates of 6.39% (undergraduate), 7.94% (graduate), and 8.94% (Parent PLUS). A borrower with $80,000 in PLUS loans could save $15,000+ by refinancing to 4.5%. The key question: are you absolutely certain you'll never need federal protections?
The PSLF factor: Over 1,046,000 borrowers have now received $69.2 billion in PSLF forgiveness since program reforms in 2022. If you work in public service - government, nonprofits, public schools, hospitals - refinancing could cost you far more than it saves. This calculator helps you run the numbers for your specific situation.
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How to Use the Student Loan Refinance Calculator
- 1**Identify your loan types first**: Separate federal loans from private loans. You can refinance private loans worry-free, but federal loans require careful analysis of what you'll lose.
- 2**Enter your current total balance**: Add up all loans you want to refinance. Check studentaid.gov for federal loans and lender statements for private loans.
- 3**Calculate your weighted average rate**: If you have multiple loans at different rates, use: (Loan1 × Rate1 + Loan2 × Rate2) / Total Balance. Or use each loan's rate individually.
- 4**Input your remaining term**: How many months/years until payoff? This affects your total interest paid and monthly payment comparison.
- 5**Get pre-qualified offers from 3-5 lenders**: Check actual rates you qualify for - these vary significantly by credit score, income, and lender. Most offer soft credit pulls that don't hurt your score.
- 6**Enter the best refinance rate offered**: Use the lowest fixed rate from your pre-qualification offers. Consider variable rates only if you'll pay off quickly.
- 7**Choose your new loan term strategically**: Shorter terms (5-7 years) mean higher payments but massive interest savings. Longer terms (15-20 years) lower payments but cost more overall.
- 8**Compare the complete picture**: Look at monthly payment change, total interest savings, and critically - what federal protections you'll lose. If you qualify for PSLF, the math almost always favors keeping federal loans.
Formula
PMT = [P x r x (1+r)^n] / [(1+r)^n - 1]The standard amortization formula calculates your fixed monthly payment. P is the principal (loan balance), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula determines how much you pay each month to fully repay the loan with interest over the specified term.
The Student Loan Refinance Formula
Monthly Payment Calculation:
PMT = [P x r x (1+r)^n] / [(1+r)^n - 1]
Where:
- PMT = Monthly payment
- P = Principal (loan balance)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments
Example Calculation:
- Loan balance: $50,000
- New interest rate: 5.5% (0.055/12 = 0.00458 monthly)
- Term: 10 years (120 payments)
PMT = [50,000 x 0.00458 x (1.00458)^120] / [(1.00458)^120 - 1] PMT = $542.64/month
Total paid: $65,117 Total interest: $15,117
Compare to Original Loan:
- Same $50,000 at 6.8% federal rate, 10-year term
- Monthly payment: $575.40
- Total interest: $19,048
Refinancing Savings: $3,931 over life of loan, $32.76/month
Break-Even Analysis: Unlike mortgages, student loan refinancing typically has no closing costs. However, you "pay" by losing federal protections. Calculate the value of those protections before refinancing.
Federal vs. Private Loans: The Critical Difference
Federal Loan Protections You LOSE by Refinancing:
-
Income-Driven Repayment (IDR) Plans
- SAVE Plan: Payments capped at 5-10% of discretionary income
- PAYE/REPAYE/IBR: Various income-based options
- Payments can be $0 during financial hardship
-
Public Service Loan Forgiveness (PSLF)
- Complete forgiveness after 120 qualifying payments
- Must work for government or 501(c)(3) nonprofit
- As of 2026: 1,046,000+ borrowers forgiven, $69.2B total
-
Forgiveness After IDR Payments
- SAVE/PAYE: Forgiveness after 20-25 years of payments
- Remaining balance forgiven (may be taxable)
-
Deferment and Forbearance
- Economic hardship deferment
- Unemployment deferment
- In-school deferment
- Military service deferment
-
Death and Disability Discharge
- Federal loans discharged upon death (no estate liability)
- Total and Permanent Disability discharge available
What Private Refinanced Loans Offer:
- Fixed interest rate (potentially lower)
- Predictable monthly payments
- Possible cosigner release after 24-48 payments
- That's it. No safety nets.
The Golden Rule: Never refinance federal loans if you work in public service, have unstable income, might need IDR plans, or qualify for any forgiveness program.
PSLF Warning: Do NOT Refinance These Loans
Public Service Loan Forgiveness Eligibility Requirements:
-
Employment: Full-time at qualifying employer
- Federal, state, local, or tribal government
- 501(c)(3) nonprofit organizations
- AmeriCorps, Peace Corps
- Public schools, hospitals, libraries
-
Loan Type: Direct Loans only
- Direct Subsidized/Unsubsidized
- Direct PLUS (Graduate or Parent)
- Direct Consolidation Loans
-
Payment Plan: Qualifying repayment plan
- Any IDR plan (SAVE, PAYE, REPAYE, IBR, ICR)
- 10-year Standard Repayment Plan
-
Payment Count: 120 qualifying payments
- Payments don't need to be consecutive
- Must be made while working full-time for qualifying employer
PSLF Math: Why Refinancing is Financial Suicide
Example: $80,000 in federal loans at 6.5%, public school teacher
- SAVE Plan payment: ~$350/month (based on $55,000 salary)
- After 120 payments: $42,000 paid
- Forgiveness amount: $80,000+ (principal + accrued interest)
- Total benefit: $38,000+ saved
Same borrower refinances to 5.0%:
- Monthly payment: $849 (10-year term)
- Total paid: $101,880
- Forgiveness: $0
Refinancing cost this borrower $59,880 by forfeiting PSLF.
PSLF Tracker (2026 Data):
- Total borrowers forgiven: 1,046,000+
- Total amount forgiven: $69.2 billion
- Average forgiveness: ~$66,000
- Approval rate (post-2022 reforms): 52%+
2026 Student Loan Refinance Rates by Credit Score
Current Rate Ranges (January 2026):
| Credit Score | Fixed Rate Range | Variable Rate Range |
|---|---|---|
| 780+ | 4.49% - 6.00% | 4.24% - 5.75% |
| 740-779 | 5.00% - 7.00% | 4.75% - 6.50% |
| 700-739 | 6.00% - 8.50% | 5.50% - 8.00% |
| 670-699 | 7.50% - 10.00% | 7.00% - 9.50% |
| 640-669 | 9.00% - 12.00% | 8.50% - 11.50% |
| Below 640 | Limited options, 12%+ | Typically unavailable |
Federal Loan Rates (Comparison):
- Direct Subsidized/Unsubsidized (Undergraduate): 6.53%
- Direct Unsubsidized (Graduate): 8.08%
- Direct PLUS (Graduate/Parent): 9.08%
When Refinancing Rate Beats Federal Rate:
Graduate PLUS borrower with excellent credit could refinance from 9.08% to 5.0% - significant savings IF they don't need federal protections.
Undergraduate with 6.53% federal loans and 720 credit score might only qualify for 6.5% refinance rate - not worth losing protections.
Factors That Affect Your Rate:
- Credit score (most important)
- Income and employment stability
- Debt-to-income ratio
- Degree type (STEM degrees often get lower rates)
- Loan term selected (shorter = lower rate)
- Whether you have a creditworthy cosigner
Best Student Loan Refinance Lenders 2026
Top Lenders Compared (January 2026):
| Lender | Fixed APR | Variable APR | Min Credit | Loan Terms |
|---|---|---|---|---|
| SoFi | 3.99% - 9.99% | 4.39% - 9.99% | 650 | 5-20 years |
| Earnest | 4.24% - 9.99% | 4.39% - 9.99% | 650 | 5-20 years |
| Laurel Road | 4.24% - 8.99% | 4.49% - 8.99% | 660 | 5-20 years |
| Splash Financial | 4.24% - 9.99% | 4.49% - 9.99% | 650 | 5-20 years |
| ELFI | 4.44% - 8.44% | 4.49% - 8.44% | 680 | 5-20 years |
| CommonBond | 4.44% - 8.99% | 4.49% - 8.99% | 660 | 5-20 years |
Lender Highlights:
SoFi (Best Overall)
- Unemployment protection (pauses payments if you lose your job)
- Career coaching and networking events
- No fees (origination, prepayment, or late fees)
- Best for: Borrowers who want member benefits
Earnest (Best for Customization)
- Choose your exact monthly payment amount
- Skip one payment per year
- Lowest rates available (as low as 3.99%)
- Best for: Borrowers who want payment flexibility
Laurel Road (Best for Doctors/Medical)
- Special rates for medical professionals
- Grace periods during residency
- Discounts for autopay + membership
- Best for: Healthcare professionals
ELFI (Best for Excellent Credit)
- Very competitive rates for 750+ credit
- Cosigner release after 24 payments
- Up to $500,000 in refinancing
- Best for: High-income, excellent credit borrowers
The Decision Framework: Should YOU Refinance?
Refinancing Decision Matrix:
| Your Situation | Federal Loans | Private Loans |
|---|---|---|
| Work in public service | ❌ NEVER refinance | ✅ Refinance if better rate |
| Might work in public service | ❌ Don't refinance | ✅ Refinance if better rate |
| Unstable income | ❌ Keep federal IDR | ✅ Consider carefully |
| Stable high income, private sector | ✅ Consider refinancing | ✅ Refinance if better rate |
| Credit score under 670 | ❌ Won't get good rate | ❌ Won't get good rate |
| Already on IDR forgiveness track | ❌ Never refinance | N/A |
The 5-Question Test:
-
Do you work for government or nonprofits?
- If YES → Do NOT refinance federal loans (PSLF)
-
Is your income unstable or might decrease?
- If YES → Keep federal loans (IDR safety net)
-
Is your credit score 720+?
- If NO → You likely won't get a rate worth refinancing for
-
Can you get a rate at least 1% lower?
- If NO → Not worth losing protections for small savings
-
Do you have 6+ months emergency fund?
- If NO → Keep federal deferment options available
Green Light Scenarios (Refinance Makes Sense):
- Private sector worker with stable $80K+ income
- Credit score 750+, qualifying for sub-5% rates
- Graduate/PLUS loans at 7-9% federal rates
- Already paid off undergraduate loans
- Have private loans at high rates
- Never going to work in public service
Red Light Scenarios (Keep Federal Loans):
- Any possibility of PSLF eligibility
- Currently on or planning income-driven repayment
- Work in education, healthcare, government, nonprofits
- Income is variable or commission-based
- No emergency savings
- Credit score under 700
Impact on Your Credit Score
How Refinancing Affects Your Credit:
Short-Term Impact (1-3 months):
| Action | Credit Impact | Duration |
|---|---|---|
| Rate shopping (soft pulls) | 0 points | N/A |
| Hard credit inquiry | -5 to -10 points | 1-2 years |
| New account opened | -5 to -15 points | 3-6 months |
| Account age decrease | -5 to -10 points | Gradual |
Long-Term Impact (6+ months):
| Factor | Credit Impact | Notes |
|---|---|---|
| Lower utilization | +10 to +30 points | If consolidating |
| Payment history | +/- | Depends on payments |
| Debt payoff | +20 to +50 points | When paid in full |
Rate Shopping Window:
The credit bureaus recognize rate shopping. Multiple hard inquiries for the same loan type within 14-45 days count as ONE inquiry. This means:
- Shop aggressively within 2 weeks
- Get quotes from 5+ lenders - won't hurt more than one inquiry
- Compare offers side-by-side
- Choose the best within the window
Protecting Your Credit During Refinancing:
- Pre-qualify first - Most lenders offer soft-pull pre-qualification
- Apply within the same 2-week period - Counts as one inquiry
- Don't open other credit - Avoid new cards/loans during this time
- Keep old accounts open - Even if you're refinancing, don't close old accounts
- Set up autopay immediately - Never miss a payment on the new loan
Step-by-Step Refinancing Process
Timeline: 2-4 Weeks from Application to Funding
Week 1: Preparation
| Day | Action | Details |
|---|---|---|
| 1 | Check federal loan status | studentaid.gov - verify PSLF progress, IDR status |
| 2 | Check credit score | Free at annualcreditreport.com |
| 3 | Gather documents | Pay stubs, tax returns, loan statements |
| 4-5 | Get pre-qualified | 3-5 lenders, soft credit pulls |
| 6-7 | Compare offers | Rate, term, fees, benefits |
Week 2: Application
| Day | Action | Details |
|---|---|---|
| 8 | Submit full application | Choose best lender, hard pull |
| 9-10 | Upload documents | W-2s, pay stubs, loan statements |
| 11-12 | Verification | Lender verifies employment, income |
| 13-14 | Loan approval | Receive final terms |
Week 3-4: Funding
| Day | Action | Details |
|---|---|---|
| 15-18 | Sign documents | E-sign loan agreement |
| 19-25 | Loan funds | New lender pays off old loans |
| 26-30 | Verify payoff | Confirm old loans show $0 balance |
Documents You'll Need:
- Government-issued ID
- Most recent pay stubs (2-4 weeks)
- W-2s from past 2 years
- Most recent tax return
- Current loan statements (all loans being refinanced)
- Proof of degree (some lenders)
- Employer verification letter (some lenders)
After Funding:
- Set up autopay - Usually saves 0.25% on rate
- Verify old loans paid - Check each original lender
- Update budget - Account for new payment amount
- Cancel old autopay - Don't double-pay
- Keep records - Save all payoff confirmations
Pro Tips
- 💡Never refinance federal loans if you work in public service, government, or nonprofits - PSLF forgiveness averages $66,000 and you lose it permanently by refinancing.
- 💡Always refinance private student loans if you qualify for a lower rate - there are no federal protections to lose, only money to save.
- 💡Get rate quotes from at least 3-5 lenders before refinancing - rates can vary by 1-2% between lenders for the same borrower.
- 💡Consider refinancing only your private loans while keeping federal loans separate to preserve federal protections.
- 💡Choose the shortest term you can afford - a 5-year term at 5% costs far less than a 15-year term at 4.5% due to less time accruing interest.
- 💡Shop for rates within a 14-day window - multiple hard inquiries for the same loan type count as one inquiry on your credit report.
- 💡Set up autopay immediately after refinancing - most lenders offer a 0.25% rate reduction for automatic payments.
- 💡Wait until your credit score is 720+ before refinancing - the difference between 680 and 720 can be 1-2% in interest rate.
- 💡Consider refinancing Parent PLUS loans to release your parents from liability - students need 650+ credit and stable income to qualify.
- 💡Check your PSLF payment count at studentaid.gov before refinancing - you might be closer to forgiveness than you realize.
- 💡If you have a mix of high and low-rate loans, refinance only the high-rate ones to minimize lost federal protections.
- 💡Time your refinancing for after a raise or promotion - lenders weigh income heavily, and higher income means better rates and approval odds.
Frequently Asked Questions
Only refinance federal loans if ALL of these apply: (1) you have stable, high income unlikely to decrease, (2) you will never work in public service or for a nonprofit, (3) you do not qualify for PSLF or IDR forgiveness, (4) you have excellent credit qualifying for rates significantly below your federal rate, and (5) you have emergency savings to make payments during any hardship. If any of these conditions is uncertain, keep your federal loans. The federal safety net is worth more than the interest savings for most borrowers.
