What do I lose by refinancing federal student loans?

Refinancing federal loans with a private lender removes income-driven repayment, public service loan forgiveness, deferment/forbearance, and other federal protections. Only refinance if you're confident you won't need those.

Does a lower payment always mean savings?

No. Extending the term lowers the monthly payment but you pay interest longer, so total cost can rise. Compare total cost, not just the payment.

How do I know my current rate and balance?

Check your servicer's account portal for the weighted average rate across your federal loans and the total balance. That's what to enter here.

Student Loan Refinance Calculator

Is a private refinance worth it? Compare cost, and weigh what you'd give up.

Last updated: September 5, 2026

Your answer

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Monthly payment and total cost: current vs refinanced.

The catch you must know

Refinancing federal loans to a private lender loses federal benefits: income-driven repayment, Public Service Loan Forgiveness, and deferment/forbearance. Only refinance if you're sure you won't need those — that trade-off matters far more than the rate.

Should you refinance your student loans?

Refinancing swaps your current loan(s) for a new private loan at a (hopefully) lower rate. On paper it's simple: lower rate = lower cost. But for federal loans it's a one-way door — you give up protections that are hard to unwind, and the "savings" isn't always real.

The total-cost trap

Lenders advertise the monthly payment, but the payment and the cost are different. If you extend the term to lower the payment, you pay interest for more years — total cost can go up even though the monthly bill goes down. The tool shows both monthly payment and total cost to payoff, so you can see the real trade.

What you give up

If your loans are federal, refinancing to a private lender forfeits:

Income-driven repayment (IDR) — payments capped as a share of income.
Public Service Loan Forgiveness (PSLF) — 120 qualifying payments on an IDR plan.
Deferment & forbearance — pauses during hardship, unemployment, school.
Potential future forgiveness (e.g., borrower defense, disability discharge).

If there's any chance you'll rely on these, the rate savings rarely outweigh what you lose.

When refinancing makes sense

You have private loans (no federal protections to lose).
You have a stable professional income, won't qualify for forgiveness, and don't want IDR.
You can get a rate meaningfully below your current one and keep a similar term.
You've confirmed the new lender's fees and terms are fine.

Methodology & sources

Uses standard amortization. Your "current rate" should be the weighted average across your loans; get it from your servicer. The new-rate default is illustrative — real refinance rates depend on credit and term.

Frequently asked questions

Should I consolidate instead of refinance?

Federal consolidation combines loans into one federal loan without losing federal benefits — it can help with IDR/PSLF eligibility. Refinance is private and loses those benefits. They're different tools for different goals.

Can I refinance if I'm on income-driven repayment?

Yes, but you'd lose the IDR benefits and the possibility of forgiveness. Almost always not worth it unless you're certain you won't need them.

Does a shorter term make sense?

Often yes, if you can afford the higher payment — you cut total interest substantially. Weigh it against your cash flow.

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