Refinancing student loans means taking out a new private loan to pay off one or more existing student loans. The new lender sets a new rate and term. For some borrowers that can change the monthly payment or total cost; for others it means giving up protections that matter.
Federal loans come with benefits
Federal student loans offer options that private loans generally don't, such as income-driven repayment plans, forgiveness programs for certain careers, and federal deferment or forbearance if you hit a rough patch. If you refinance federal loans with a private lender, you lose access to those benefits, and the new loan can't be moved back into the federal program.
When refinancing may be worth a look
Refinancing private student loans doesn't give up federal benefits, so the trade-off is simpler. Borrowers whose credit or income has improved since they first borrowed may see different terms than before — though what you're offered depends on each lender's review, and no savings are guaranteed. Our guide on how credit scores affect the offers you see explains why.
What to compare
- APR: compare it with the rates on the loans you'd pay off.
- Fixed or variable rate: a variable rate can change over the life of the loan.
- Term: a longer term may lower the payment but can raise the total interest you pay. See our guide on comparing offers by APR, fees and term.
- Cosigner and hardship policies: whether a cosigner can be released, and what the lender offers if you lose income.
Lendara is a marketplace, not a lender. Participating lenders 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