Refinancing student loans can help you secure a lower interest rate, combine multiple payments, or change your monthly cash flow. However, by moving federal student loans to a private lender, you forfeit federal protections like income-driven repayment and forgiveness programs. Review options at Federal Student Aid.
Assess whether you need loan forgiveness (like PSLF), income-driven plans, or temporary deferment, which private refinancing eliminates.
Compare the new private interest rate to the weighted average of your current interest rates to ensure positive lifetime savings.
A longer term reduces monthly payments but increases total interest paid. Select a term that balances daily cash flow and total debt cost.
Always weigh interest savings and payment flexibility before signing. Private refinancing is irreversible for federal student loans.
Consolidate multiple student loans, estimate refinancing savings, and calculate your break-even point.
Net Lifetime Savings
You will save $2,884 on interest
| Year | Outstanding Balance | Annual Payments | Principal Paid | Interest Paid |
|---|---|---|---|---|
| 1 | $36,759 | $4,975 | +$3,241 | -$1,734 |
| 2 | $33,369 | $4,975 | +$3,390 | -$1,585 |
| 3 | $29,824 | $4,975 | +$3,546 | -$1,429 |
| 4 | $26,115 | $4,975 | +$3,708 | -$1,266 |
| 5 | $22,236 | $4,975 | +$3,879 | -$1,096 |
| 6 | $18,179 | $4,975 | +$4,057 | -$918 |
| 7 | $13,936 | $4,975 | +$4,243 | -$731 |
| 8 | $9,498 | $4,975 | +$4,438 | -$536 |
| 9 | $4,855 | $4,975 | +$4,642 | -$332 |
| 10 | $0 | $4,975 | +$4,855 | -$119 |
