Student Loan Refinance

Free Student Loan Refinance calculator with clear step-by-step results.

About Student Loan Refinance

Compares total cost rather than monthly payment, because refinancing to a longer term can reduce the payment while costing more overall. The forgiveness field captures the value of income-driven repayment, forbearance or loan discharge that refinancing to a private lender permanently forfeits.

Formulas

Monthly payment

Payment = balance x r / (1 - (1 + r)^-n)

Net saving

Saving = old total payments - new total payments - value of protections forfeited

Worked example

With the default values below, Student Loan Refinance returns Net lifetime saving of $8,342.55. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current balanceminimum 0 $: 42,000 $
Current interest rateaccepts 0–20 %: 6.8 %
Years remainingaccepts 0.5–40: 12
New interest rate offeredaccepts 0–20 %: 4.9 %
New termaccepts 0.5–40: 10
Value of forgiveness or protections given upminimum 0 $: 0 $

Results

Net lifetime saving: $8,342.55
New monthly payment: $443.43
Change in monthly payment: $15.97
Total interest on the new loan: $11,211.01

Step by step

1Values used
2Monthly payment
3Net saving
4Net lifetime saving= $8,342.55
5New monthly payment= $443.43
6Change in monthly payment= $15.97
7Total interest on the new loan= $11,211.01

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Not financial advice. Refinancing federal student loans into private debt is generally irreversible and forfeits statutory protections. Review your specific loan terms and current programme rules before acting.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Not financial advice. Refinancing federal student loans into private debt is generally irreversible and forfeits statutory protections. Review your specific loan terms and current programme rules before acting.

Frequently Asked Questions

What protections do I lose by refinancing federal loans?

Typically income-driven repayment, deferment and forbearance rights, death and disability discharge, and eligibility for any public service forgiveness. Put a value on those in the forfeited field.

Is a lower rate always worth it?

Not if the term extends enough to raise total interest, and not if you were on track for forgiveness. Read the net lifetime saving, not the payment change.