Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What is student loan refinancing?
Refinancing combines your student loans into a new loan with a private lender, often at a lower interest rate. This can lower your monthly payment or help you pay off debt faster. However, refinancing federal loans means losing federal protections.
When does refinancing make sense?
Refinancing makes sense if you have a strong credit score, stable income, and can get a significantly lower rate. It is less beneficial if you rely on federal benefits like income-driven repayment or forgiveness.
What are the risks?
Refinancing federal loans into private loans means losing access to federal repayment plans, forgiveness programs, and deferment options. Consider these trade-offs carefully before refinancing.