Student Loan Refinance Calculator
Refinancing can cut your rate, but it permanently trades away federal protections. This calculator compares the dollars; the guides below cover what the dollars do not show.
Student loan refinancing replaces your current loans, often federal, with a new private loan at a new rate and term. A lower rate on the same balance always reduces total interest, while a longer term can lower the monthly payment but increase total interest. Refinancing federal loans into a private loan permanently forfeits income-driven repayment, Public Service Loan Forgiveness, and federal deferment and forbearance options. For the 2025-2026 academic year, new federal Direct loans carry fixed rates of 6.39% for undergraduates, 7.94% for graduate students, and 8.94% for PLUS loans (studentaid.gov).
Data current as of October 2026. Federal loan rates are the official 2025-2026 Direct loan rates (studentaid.gov). Private refinance rates change daily; verify any offer with the lender.
How the math worked
This is an estimate for planning only, not financial advice. Refinancing federal student loans into a private loan permanently forfeits federal benefits including income-driven repayment, Public Service Loan Forgiveness, and federal deferment and forbearance. Private refinance rates and terms vary by lender and credit profile. Confirm all figures with the lender.
How student loan refinancing actually works
Refinancing replaces your existing student loans with a single new private loan at a new interest rate and term. The appeal is straightforward: a lower rate on the same balance always reduces total interest, and the right term can also reshape the monthly payment. The catch is equally straightforward: when you refinance federal loans into a private loan, the federal protections disappear permanently, including income-driven repayment plans, Public Service Loan Forgiveness, generous deferment and forbearance, and federal discharge options.
The math has two independent levers. The rate lever is pure win: dropping from 6.80% to 5.25% on $35,000 over 10 years cuts the payment from about $403 to about $375 and saves roughly $3,300 in interest. The term lever is a trade: stretching to 15 years at the lower rate drops the payment to about $281 but raises total interest versus the 10-year refinance. Borrowers who refinance mainly to lower the payment should check the total interest line, not just the monthly figure.
For context on what you might be leaving, new federal Direct loans for the 2025-2026 academic year carry fixed rates of 6.39% for undergraduate loans, 7.94% for graduate and professional loans, and 8.94% for PLUS loans, according to studentaid.gov. Private refinance offers are priced on your credit profile and move daily, so any comparison should use a real written offer, not an advertised starting rate.
Learn more about student loan refinancing
- When Refinancing Student Loans Makes Sense
- Federal vs Private: What You Lose When You Refinance
- Student Loan Refinance Rates in 2026
- How Your Credit Score Affects Your Refinance Rate
- Refinancing With a Cosigner: Pros and Cons