Old Payment
$869.88
New Payment
$856.07
Est. Savings
$165.71
How it works
The Student Loan Refinance Calculator compares your current student loan (federal or private) against a potential refinance offer — showing the monthly payment change, total interest savings or cost, and break-even analysis. Use it to evaluate whether a lower refinance rate justifies switching from federal to private loans.
Refinancing at a lower interest rate can save thousands — but refinancing federal loans into private loans permanently forfeits federal protections: income-driven repayment (IDR), Public Service Loan Forgiveness (PSLF), deferment, and forbearance options. This calculator helps you quantify the interest savings so you can weigh them against the lost protections.
How to use it: enter your current loan balance, current interest rate, and remaining term. Then enter the proposed refinance rate and term. The calculator shows: monthly payment change, total interest under current loan vs. refinanced loan, dollar savings, and months to break even if there are any refinance fees.
Federal vs. private trade-off: the calculator adds a qualitative checklist — do you work in public service (PSLF eligibility?), are you on an IDR plan, do you expect income fluctuations? These factors are worth quantifying before refinancing.
Refinance timing: refinancing early in the loan term saves the most money because more of the remaining payments are interest. Refinancing in the final years saves proportionally less.
Privacy: loan calculations run in the browser.
Frequently Asked Questions
- Refinancing to private makes sense if: you have a stable income and job security, you don't qualify for PSLF (Public Service Loan Forgiveness), you're not on an income-driven repayment (IDR) plan, and your new private rate is significantly lower (at least 1–2%). You permanently lose federal protections (IDR, deferment, PSLF eligibility) upon refinancing — weigh this carefully.
- For the lowest advertised rates (usually 5–7% in 2024), you generally need a 750+ credit score, stable employment with 2+ years at your employer, debt-to-income ratio below 40%, and a strong income relative to loan balance. Rates above 8% are typically offered to borrowers with 680–720 credit scores.
- Yes. Most private refinance lenders allow you to specify which loans to refinance. A common strategy: refinance high-interest private loans (which lack federal protections anyway) while keeping federal loans in their current status — especially if you work in public service or have income uncertainty.
- Yes. If you have 8 years left on your federal loans and refinance into a new 10-year private loan, you extend your repayment period by 2 years — even if you get a lower rate. The calculator shows the total interest cost comparison accounting for this term change.