Student Loan Refinancing: Compare Before You Switch
Refinancing replaces your student loans with one new private loan, ideally at a lower rate. It can save real money on private loans, but on federal loans it gives up protections you can never get back. This guide shows how to compare offers. We don't rank lenders, and nobody pays to be listed.
Check federal and employer options first
Before refinancing a federal loan, see whether you qualify for a state loan repayment program, Public Service Loan Forgiveness or an income-driven plan. Use the RAP payment estimator and our guide to the 2026 changes.
Refinance vs. keep federal loans
| Feature | Federal loans | Refinanced (private) |
|---|---|---|
| Income-driven repayment (RAP, IBR) | Yes | No |
| PSLF and other federal forgiveness | Yes | No |
| Interest rate | Fixed, set by law | Based on your credit and income; fixed or variable |
| Deferment and forbearance | Federal options | Lender's own policy |
| Death and disability discharge | Yes | Varies by lender |
How to compare refinance offers
- Compare APR across at least three lenders, and prequalify with a soft credit check so your score isn't affected.
- Fixed vs. variable: a variable rate can climb over a 10- to 20-year loan.
- Fees: look for origination fees and prepayment penalties.
- Hardship help: ask how many months of forbearance the lender offers if you lose your job.
- Cosigner release: how many on-time payments before a cosigner comes off?
The CFPB's student loan repayment guide ↗ covers the trade-offs in more detail.
Not getting good offers? Build your credit first
Refinance rates depend heavily on your credit score. Get your free reports at AnnualCreditReport.com ↗, dispute errors, pay every bill on time and keep card balances low. Then check offers again in a few months.
General information, not financial advice. We are not a lender and don't collect your information. Last checked Oct 25, 2026.
Should I refinance federal student loans?
Only after checking federal options. Refinancing makes them private loans, so you permanently lose income-driven repayment, PSLF and federal deferment and discharge.
Does checking refinance rates hurt my credit?
Prequalifying with a soft credit check doesn't affect your score. A formal application usually triggers a hard inquiry.
Do you rank refinance lenders?
No. We explain how to compare offers and don't accept payment for rankings.