Student loan refinance calculator

Should you refinance?

Refinancing replaces your student loans with a new private loan at a different rate and term. A lower rate genuinely saves money - but if you are refinancing federal loans, you permanently give up federal protections. This calculator shows the payment and interest difference so you can weigh the savings against what you would lose.

Worked example

A $50,000 balance, refinancing from 7% to 4.5%, both over a 10-year term:

• Current payment: about $581
• New payment: about $518
• Monthly saving: about $62
• Total interest saved: about $7,482

A 2.5-point rate drop on a $50k balance saves roughly $7,500 over the loan - real money, but only worth it if you will not need federal benefits.

The federal-loan trade-off

Refinancing federal loans into a private loan is irreversible and forfeits:

• Income-driven repayment plans that cap payments at a share of income.
• Public Service Loan Forgiveness and other forgiveness programs.
• Deferment and forbearance options during hardship.

If there is any chance you will use these - especially PSLF for public-sector workers - keep federal loans federal. Refinancing makes the most sense for private loans or for high earners certain they will pay in full.

Choosing a term

• A shorter term raises the payment but minimizes total interest.
• A longer term lowers the payment but costs more over time.

The calculator lets you compare terms - look at total interest, not just the monthly number.

Common mistakes

• Refinancing federal loans and losing PSLF eligibility partway to forgiveness.
• Chasing a lower payment via a longer term and paying far more interest.
• Refinancing without locking a fixed rate, then watching a variable rate climb.

To fold the loan into a broader payoff order, see the debt avalanche calculator; to see how the saved payment could compound if invested, use the savings rate calculator.