Should I refinance my federal student loans?
This is the most important student loan question. Federal loans come with protections private loans can't match: IDR plans (pay based on income), PSLF (forgiveness after 10 years of public service), generous forbearance, and 20–25 year forgiveness. Refinancing to private permanently removes these. Only refinance federal loans if: you work in the private sector (no PSLF path), your income is high and stable, you can aggressively pay the loan within 5–10 years, and you have an emergency fund. Never refinance if you might need IDR or are pursuing PSLF.
What is PSLF and how much could I lose by refinancing?
Public Service Loan Forgiveness forgives your remaining balance after 120 qualifying payments (10 years) in government or nonprofit work. If you have $80,000 remaining at year 10, that forgiveness is tax-free. Refinancing to private immediately eliminates PSLF eligibility — period, no exceptions. On a $100,000 balance with 7 years remaining, PSLF value could be $50,000–$80,000. Compare this against the interest savings from refinancing before making any decision.
What credit score do I need to refinance student loans?
Most student loan refinance lenders require 650+ FICO, with the best rates available at 700+. Factors beyond credit score: debt-to-income ratio, employment history, degree, income, and existing payment history on your loans. Some lenders specialize in specific professional groups (doctors, lawyers, MBAs) and use income potential rather than current income for recent graduates.
What are the best student loan refinance rates?
As of March 2026, top student loan refinance lenders offer rates starting at 4.99–5.49% for well-qualified borrowers (760+ FICO, stable income). Average rates for qualified borrowers: 5.99–7.50% for 10-year fixed terms. Variable rates are lower initially but carry rate risk. Compare: SoFi, Earnest, LendKey, Splash Financial, and credit union programs — rates vary substantially between lenders for identical borrowers.
Should I refinance to a variable or fixed rate?
Fixed rate: predictable payments for life of loan, protects against rate increases, best for 7–15 year payoff timelines. Variable rate: typically 1–2% lower initially, good if you plan to pay off within 2–3 years, risky if you need a longer timeline. Given current rate environment uncertainty, fixed rates make sense for most borrowers unless you're planning aggressive payoff within 3 years.
Can I refinance student loans multiple times?
Yes. There's no limit on refinancing private student loans. If your credit score improves or rates drop, you can refinance again — always with no prepayment penalties. Many borrowers refinance once after graduation (when rates are high due to limited credit history) and again 2–3 years later after building credit history and income. Shopping multiple lenders each time is free — rate check applications are typically soft pulls.