Refinancing replaces one or more existing student loans with a new private loan, at a new rate and term set by the new lender. It can change your monthly payment or total cost, but it isn't the right move for everyone. Here's a step-by-step way to approach it.
Step 1: List your loans
Write down each loan's balance, rate, monthly payment, servicer and — most importantly — whether it's federal or private. Federal and private loans carry very different trade-offs when you refinance.
Step 2: Decide what you'd give up
Refinancing federal loans with a private lender means losing federal protections, including income-driven repayment plans, forgiveness programs such as Public Service Loan Forgiveness, and federal deferment and forbearance. Once refinanced, the loans can't be moved back into the federal program. If you rely on, or may need, any of those options, refinancing federal loans may not fit. Refinancing only your private loans avoids this trade-off. Our guide on what to know before refinancing student loans covers it in more detail.
Step 3: Check your credit and income picture
Lenders typically review credit history, income, employment and existing debt. Some allow a cosigner. Knowing where you stand helps set realistic expectations — see how credit scores affect the offers you see.
Step 4: Compare offers
Look at APR, whether the rate is fixed or variable, the term, fees, and the lender's hardship and cosigner-release policies. A longer term can lower the payment but may increase the total interest you pay. Our guide on fixed vs. variable rates when refinancing explains that choice. Many lenders show initial offers with a soft credit pull, which doesn't affect your score.
Step 5: Apply and finish the switch
A full application usually involves a hard credit inquiry and documents such as pay stubs and loan statements. If a lender offers you a loan and you accept it, the new lender pays off the old loans. Keep making your current payments until your old servicer confirms each loan is paid in full.
Lendara is a marketplace, not a lender. Lendara receives compensation from partners, which may impact which offers appear and their order; we don't include all offers available. Participating lenders make their own credit decisions and set their own rates and terms, which vary by applicant and aren't guaranteed. When you're ready, you can explore student loan refinancing options from participating lenders.
See what offers may be available to you
Explore student loan refinancing options See what offers may be available to you