When should I refinance a student loan?

If your financial situation has improved since you got your student loans or you are looking for ways to save money on your monthly loan payments, it may be time to refinance your student loans. 

You can refinance your student loans after you have graduated or while you are still taking classes. The best time to refinance your student loans depends on your situation and what will work best for you. 

If now is the right time for you to refinance your student loans, begin today with an online student loan refinance application. 

Can I refinance student loans?

Yes, you can refinance student loans.  

Refinancing student loans is a great way to potentially save you money* and find the repayment options that work best for you and your financial needs. 

When is the right time to refinance student loans?

The right time to refinance student loans depends on what you need and how an updated student loan could help you. 

I need to save money on my student loans

The biggest reason people get their student loans refinanced is to save money. Many borrowers are able to save money when refinancing by altering the rate they have on their current loan. 

Refinancing your student loan to a lower interest rate will reduce the amount of interest you will pay over the life of your loan. Reducing the interest paid will save you money over the time you will have your student loans.  

Another way a refinance could help you save is by switching from an adjustable rate to a fixed rate on your student loan. A fixed rate will protect you from rates rising, which could save you from paying more in interest if rates rise. 

I need a lower monthly payment

A student loan refinance could help lower monthly payments two ways. One of the ways to lower monthly payments is by lowering the rate on your student loan, while the other way is through extending your loan term. 

Lowering the rate on your student loan could lower your monthly payments while saving your money. Extending your term could lower your monthly payments by spreading them over a longer period of time, but may result in paying more in interest over the life of your loan. 

I need to optimize my savings on student loans

If you are looking to optimize your savings on student loans, one way to do that is to make sure you are putting any extra funds into your loans with the highest interest. 

This option may not be for everyone, as you will need to have access to additional money that you can put toward your student loans. When you do this, make sure that the funds are being used on the principal of your loan with the highest interest rate. This could help you pay off your loan quicker and reduce the amount of interest you are paying. 

If you are able to refinance to a lower rate, it may be smart to consider putting the money you are saving on interest into your loan’s principal. 

Refinancing your federal student loans will remove any federal forgiveness or protection offered. 

How can I start the student loan refinance process today?

You can start the student loan refinance process today with an online application. 

Refinancing your student loans could help you save money over the life of your loan and help you alter your payments in a way that could benefit you. Ready to start the student loan refinance process? Being your online application by visiting our student loan refinance marketplace! 

_{*Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact the student loan lender you choose to get their current rates. Restrictions apply.} 

_{This is a marketplace operated by Rate, which connects borrowers to our lender partners (Lendkey, Splash Financial and Earnest). Rate is not a student loan lender and does not make credit decisions. All credit decisions are determined by Rate’s student loan lending partners. Rate will receive compensation for products purchased from these lenders. Compensation will not impact how or where products appear on the platform when requesting prequalified rates and loans. Not all lenders participate in the marketplace. Prequalified rates are provided as informational only and intended to provide you with options for a loan with one of our lender partners and are not offers of credit. Rates from lending partners may differ. All prequalification scenarios are based on the information provided by the consumer and a soft credit pull completed by one of Rate’s lending partners. Product availability varies by state. Not financial advice. Extending your repayment term may lower your monthly payment but could result in paying more total interest over the life of the loan. Checking your rate involves a soft credit inquiry only; a hard credit inquiry will be required to complete a full application. This is not an offer or commitment to lend. Debt consolidation combines multiple debts into a single loan but does not reduce the principal owed. Loans secured by collateral put that asset at risk if payments are missed. This may not be the right solution for everyone — consult a financial advisor to explore all options. Refinancing federal student loans into a private loan permanently eliminates access to federal benefits including income-driven repayment plans (SAVE, PAYE, IBR, ICR), Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and federal deferment and forbearance. These benefits cannot be restored. Visit StudentAid.gov or contact your federal servicer before refinancing.}