$612.73
$518.19
$94.53
$66,174.38
$62,183.05
$3,991.34
$16,174.38
$12,183.05
0
months
$612.73
$518.19
$94.53
$66,174.38
$62,183.05
$3,991.34
$16,174.38
$12,183.05
0
months
The Student Loan Refinance Calculator compares your current student loan terms against a refinanced loan to show potential monthly and total savings. Student loan refinancing can save thousands of dollars by securing a lower interest rate, but it comes with important tradeoffs — particularly for federal loan borrowers.
Student loan refinancing replaces one or more existing student loans with a new private loan at a lower interest rate. Borrowers with good credit (700+) and stable income can often reduce their rates by 1-3% or more. On a $50,000 balance, a 2% rate reduction saves approximately $5,000-$8,000 in total interest over 10 years.
The most important consideration is that refinancing federal student loans into a private loan forfeits all federal benefits: income-driven repayment plans (IBR, PAYE, REPAYE/SAVE), Public Service Loan Forgiveness (PSLF), deferment and forbearance options, and potential future forgiveness programs. If you work in public service, plan to use IDR, or may need payment flexibility, refinancing federal loans is generally not recommended.
However, if you have a high-income, stable career and do not plan to use federal benefits, refinancing federal loans can be an excellent financial decision. And for private student loans, refinancing is almost always worth exploring since private loans already lack federal protections. Private loan rates can often be reduced from 8-12% to 4-6% with improved credit.
This calculator shows both monthly savings and total savings across the full term. When evaluating offers, remember that a longer term reduces monthly payments but increases total interest. For the best overall value, choose the shortest term you can comfortably afford.
Current Payment = Balance × r × (1+r)^n / ((1+r)^n − 1) at the current rate and remaining term.
New Payment = Same formula with the new rate and new term.
Monthly Savings = Current − New. Total Savings = Total Remaining (Current) − Total (New).
Refinancing is clearly beneficial for private student loans when you qualify for a lower rate. For federal loans, only refinance if: (1) you will never need IDR or PSLF, (2) the rate savings is substantial (1.5%+), and (3) you have stable income and an emergency fund. Never refinance if you might need federal protections.
Inputs
Results
Refinancing $50K from 6.5% to 4.5% saves $83/month and ~$2,760 total. But forfeits federal protections.
Inputs
Results
Private $80K from 9% to 5% with shorter 7-year term. Higher payment but $26,559 total savings.
Replacing existing student loans with a new private loan at a lower interest rate. It can combine multiple loans into one payment and reduce your rate, saving money over time.
Only if you do not plan to use income-driven repayment, PSLF, or other federal benefits. Refinancing federal loans into private loans permanently forfeits all federal protections and forgiveness options.
Most refinance lenders require 670+. For the best rates (under 5%), you typically need 750+ with stable income. Some lenders allow co-signers to strengthen applications.
A 2% rate reduction on $50,000 over 10 years saves approximately $5,000-$8,000. Savings increase with larger balances and greater rate reductions.
Fixed rates provide payment certainty. Variable rates start lower but can increase. For terms under 5 years, variable rates are less risky. For 10+ year terms, fixed rates provide better protection.
Most lenders require at least an associate's degree. Some lenders allow current students to refinance existing loans but may have stricter requirements.
There is no limit. You can refinance again if rates drop further. Each refinance involves a hard credit inquiry, but the impact is minimal if done within a 14-day window.
They are permanently lost when you refinance with a private lender. You lose access to IDR plans, PSLF, deferment, forbearance, and any future federal forgiveness programs.
Most lenders require $5,000-$10,000 minimum. Some accept lower balances. For very small balances, the effort may not be worth the savings.
The application takes 15-30 minutes. Approval is typically within 1-3 days. Total process including loan payoff takes 2-4 weeks. You continue paying the old loan until the refinance is complete.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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