Student Loan Refinancing Calculator

Refinancing a loan—consolidating several loans right into a single private loan using its own terms and interest rate—can save you a ton of money. When you subscribe to a brand new loan, your existing loans are repaid and also you make payments around the new loan instead.

Credible is a one-stop-shop for education loan refinancing rates – get your quotes in just minutes

In addition to simplifying the repayment process, refinancing reduces the total interest you’ll pay within the life of the loan, shrinking your interest APR (apr). You are able to combine both federal and private loans whenever you refinance.

Student Loan Refinancing calculator

How the calculator works

Comparing rate estimates side by side is helpful but it doesn’t always show you the entire picture, particularly if you’re juggling multiple rates of interest and term options.

The calculator is made to give you a goal look into how each term and interest rate will affect your new loan.

Fields you enter

Current loans

Add the data for approximately three current loans, including your balance, rate of interest (2% to 9%), and monthly payment.

If you have a lot more than three loans, go into the three with the highest balance. Or maybe a couple of your loans have similar rates of interest, combine the balances and monthly payments into a single entry.

New loan

  • Term (years). Lenders generally offer terms between five and Two decades.
  • Interest rate. If you’ve seen estimates and know the interest rate you’re prone to get, enter info accordingly. Should you don’t, compare your results with as many rates as you possibly can. The sliding scale goes from 2% to 9% (the calculator doesn’t let you choose from fixed and variable rates).

Your results

Monthly payment

Here’s in which you see your potential payment per month based on the loan term you select. It may be pretty much than you’re currently paying.

Keep this guideline in your mind: your overall debt payments (including every other payments you’re making along with student education loans) shouldn’t exceed 40% of the monthly pre-tax income. Lenders review your debt-to-income ratio when they’re approving loans.

Months remaining

Here you’ll see how a lot more quickly (or slowly) you’ll repay the loan if you refinance.

Total interest cost

This field shows how much interest you’ll pay during the life of your current loan – it’s okay if this number shocks you – and the interest you’ll pay throughout the life of the refinanced loan. The main difference will show you what you can save over time. 

Who should refinance their student education loans?

Technically a person with a minimum of $5,000 in student debt, federal or private, can consider refinancing. But every borrower differs. Like most education loan options, refinancing is the perfect option for some than for others.

You should strongly consider refinancing if:

  • You have a stable income and can make monthly payments, and/or you've someone trustworthy who’s prepared to co-sign on the new loan.
  • You have a good credit score (a rating of 700 or over) along with a strong credit history.
  • You have several private or non-federal loans.
  • Your loans, federal and private, equal to more than $10,000.
  • You have an APR of 6% or more in your current loan.

How to refinance your loan

Compare multiple lenders

The initial step would be to look for lenders. Essentially you’re getting a whole new loan, so you want to investigate options exactly like you did when you borrowed your original loans.

Look into banks, lending institutions, and comparison marketplaces like Credible that actually work having a number of lenders. If you have special circumstances, seek out lenders who will accommodate you.

Every lender has different requirements for borrowers’ credit ratings and income, so look at those too.

Get rate estimates

Once you’ve found several lenders that appear to be promising, it’s time for you to compare rates and see who can get you the best terms possible. You’re not creating a commitment yet; you may even decide you don’t wish to refinance in the end.

Some lenders will estimate your rate before you apply. You’ll submit some fundamental info on the website, like your total student loan debt, your earnings, and any other monthly payments you are making like mortgage or car payments, to see if you meet the lender’s eligibility requirements.

At this stage, lenders pull your credit for a soft credit check—one which doesn’t affect your score. Browsing offers won’t affect your score either. Other lenders may wait to show you an interest rate until after you’ve submitted a proper application.

Consider other factors beyond the numbers. Read reviews from the lender; could they be generally simple to use, or are borrowers frustrated? How’s their customer service? How flexible are they if you want to make a change?

Pick a lender and loan terms

If you find a competitive lender it’s time for you to negotiate loans like interest rate and repayment timeline.

When you compare rate offers you’ll have different repayment terms to choose from, usually five, seven, 10, 15, or 20 years. Longer terms mean more overall interest but lower monthly obligations.

You’ll also see choices for both fixed interest rates, which stay the same over the loan’s life, and variable interest rates which go up and down because the market changes.

Keep in mind a flexible rate is smartest if you are planning to pay off the loan quickly. Just because you secure a competitive variable rate of interest doesn’t mean you’ll always have that rate. If you need time to pay off the loan, a set rate of interest is the greatest bet.

Fill out a formal application

Next, you’ll officially apply for the borrowed funds. This does represent a commitment, similar to the application you signed when getting your previous loan.

You need to complete this step even if the lender says you’re pre-qualified according to preliminary info. Most lenders require identifying documents, evidence of income, statements for the past loans including your full repayment history, and information for a co-signer if you have one. Your current lenders must have an eye on the loan history available.

Before approving the application lenders will perform a tough credit check, one which does briefly affect your credit rating.

Keep paying loans until you’re approved

Expect the approval tactic to take 2 to 3 weeks. Meanwhile keep paying in your original loans until you’ve signed off on the new one. You’ll generally have a three-day “rescission period” after accepting the borrowed funds where you can make a change if you need to.

Lenders to check out


Credible may be the one-stop-shop for comparing multiple refinancing lenders. Enter some financial info (you can estimate should you don’t know the exact balances or interest rates in your loans) and



SoFi sticks out for their unbeatable interest rates. Though actual rates will vary based on the borrower, SoFi is known to provide an APR as low as 3.899% on the fixed-rate loan and 2.80% on a variable rate loan. In case your rate of interest now's higher, you will find the potential for big savings.

SoFi does require borrowers to be used (and have an offer of employment) and also have a university degree from a certified school. They don’t use FICO credit scores, so applicants with less-than-perfect credit have a good shot at obtaining a loan when they meet other requirements.


Earnest is among the most flexible lenders about this list. You place your personal monthly payment—a unique feature for any refinanced loan. They’ll work along with you in case your employment situation changes. And borrowers have the ability to skip one payment a year.

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