Should I refinance my student loans?​

Student loan refinancing is a great option for simplifying or lowering your debt payments. 

Refinancing student loans allows borrowers the opportunity to tailor their repayments to their financial situations after they get started in their careers. Refinancing gives borrowers the chance to redefine their loan with better terms. 

Looking to refinance your student loan? You can use our marketplace to connect with a lender and begin with an application. 

What does it mean to refinance a student loan?

Refinancing a student loan means replacing your current loan or loans with a new one with terms that better reflect you and your needs.   

A student loan refinance could lower your interest rate, extend or shorten your loan length, consolidate multiple loans, remove a cosigner or even customize your payments. Refinancing your student loans offers you the chance to modify your loan repayment to better reflect your current financial situation. 

How does student loan refinancing work?

Student loan refinancing lets you replace your student loan with a fresh loan. 

This new loan tends to come with a lower rate or more flexible terms that meet your needs better than your original student loan. If you have multiple student loans, refinancing can consolidate them under one loan, making repayment more convenient. 

How can I benefit from refinancing my student loans?

Two of the biggest benefits of refinancing your student loans are the flexibility and savings your new student loan could offer. 

Flexibility

When you refinance your student loans, you can change your loan to terms that better represent your financial situation. Student loan refinancing offers more flexibility than your original loan. This flexibility could be in the length of your loan, interest rate or option to consolidate multiple loans and payments into one. 

Savings

The biggest reason borrowers choose to refinance their student loans is to lower their monthly payments.  

The main way you could save money when refinancing your student loans is by lowering your interest rate with an improved credit score or by gaining steady employment. You can also lower your monthly payments by extending the length of your loan and paying a smaller amount over a longer period of time. 

When should I refinance student loans?

The best time to refinance your student loans is when you gain steady employment and can get a lower interest rate on your new loan. 

When borrowers get their student loans, they are in school, and many don’t have full-time jobs until after they graduate. Many lenders prefer borrowers to have steady employment and income. Having a steady income will reduce your debt-to-income (DTI) ratio, which could get you a lower rate on your refinance. 

Lower interest rates on your student loans could mean that you will pay less interest on your loan each month. Current market interest rates dropping could be sign that it is time to look at refinancing your student loans to take advantage of the lower rates. 

Building up your credit score is another way you could gain a lower interest rate on your new loan. If your credit score has improved, it may be time to consider a student loan refinance. 

How can I find out if it makes sense to refinance my student loans?

To find out if it makes sense to refinance your student loans, take a look at your financial situation as well as current market rates. 

If you have gained steady employment and income since you got your student loan, have worked up your credit score or market rates have fallen, it may make sense to refinance. This means that you will have to regularly check on these factors to determine when refinancing your student loans will make sense. 

When you have decided that refinancing makes sense for you, use our marketplace to connect with a lender and start your student loan refinance online. 

_{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.} 

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.} 

_{All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.} 

_{This student loan refinance marketplace is presented by Rate for marketing purposes only. When you click the button to “Continue” you are leaving Rate and entering the marketplace. The marketplace is operated by FitBux, Inc., which facilitates connections to third-party Platform Partners (such as LendKey and Splash Financial) and their lending institutions, and may receive compensation when you complete a loan transaction. Rate and Fitbux are affiliated companies under common ownership. Clicking the “Continue” button you will be sharing your information with third party Platform Partners LendKey and Splash Financial, and agree to be subject to the terms of use and privacy policies posted by these third parties. Rate is not a lender, does not participate in credit decisions, and does not receive compensation in connection with any loan transaction. Prequalified rates are informational only, do not constitute offers of credit, and are subject to change. Final rates may differ based on your credit profile and other factors. Lowest rates require highly creditworthy applicants and may require a cosigner. All credit decisions are made solely by lending institutions in their discretion. This platform does not represent all available loan options. Product availability varies by state. Not financial advice — consult a qualified advisor before refinancing.}