Use the calculator above to estimate your potential savings by entering your current loan balance, interest rate, and remaining term. The results show your projected new monthly payment and total interest costs based on refinancing terms available in 2026.

How Student Loan Refinance Savings Are Calculated

Refinance savings are determined by comparing your existing loan’s amortization schedule against a new loan’s terms. The key formula is:

• Monthly Payment = P × (r(1+r)^n) / ((1+r)^n-1)
• P = Principal balance
• r = Monthly interest rate (annual rate ÷ 12)
• n = Number of payments (term in years × 12)

Lenders typically offer rates between 4.5%–9% for qualified borrowers in 2026, with the best rates going to those with credit scores above 740 and stable income.

What Affects Your Payment

• Interest rate: 1% difference on a $50k loan changes payments by ~$50/month
• Loan term: Extending from 10 to 15 years lowers payments but increases total interest
• Loan type: Federal loans may qualify for income-driven plans that private refinancing eliminates
• Fees: Some lenders charge 1–5% origination fees (typically rolled into the loan)
• Cosigner release: Adding a cosigner may secure better rates but limits future flexibility

Tips to Lower Your Payment

• Improve your credit first: A 50-point score increase could qualify you for rates 1.5% lower
• Compare variable vs fixed: Variable rates start 0.5–1% lower but can increase annually
• Target 5/10-year terms: Shorter terms often have the lowest rates without excessive payment hikes
• Ask about loyalty discounts: Some lenders offer 0.25% reductions for autopay or existing accounts
• Consider partial refinancing: Keep federal benefits on some loans while refinancing higher-rate private debt

Common Questions

Should I refinance federal student loans?

Only if you’re certain you won’t need income-driven repayment, PSLF, or federal forbearance protections. Private refinancing permanently converts federal loans, eliminating these options.

How often can I refinance student loans?

There’s no limit—many borrowers refinance every 12–24 months as their credit improves or rates drop. However, each application triggers a hard credit inquiry that temporarily lowers your score by 3–5 points.

What’s better: lower payment or less total interest?

Mathematically, minimizing total interest saves more money long-term. But if cash flow is tight, a slightly higher rate with extended term may provide necessary breathing room. Use the calculator to compare both scenarios.