What do I lose by refinancing federal loans?

Access to income-driven repayment, Public Service Loan Forgiveness, generous deferment/forbearance, and any federal interest subsidies — all are forfeited once refinanced privately.

Does a longer term save money?

A longer term lowers the monthly payment but usually increases total interest paid. A shorter term saves the most interest if you can afford the higher payment.

What credit score do I need to refinance?

Most lenders want a score in the high-600s to 700s plus stable income. The best rates go to borrowers with strong credit or a creditworthy co-signer.

Can I refinance more than once?

Yes — there's no limit. If rates drop or your credit improves, you can refinance again, typically with no origination fees.

Student Loan Refinance Calculator

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the student loan refinance calculator?

In short

Refinancing replaces your student loans with a new private loan at a lower rate. Refinancing a $40,000 balance from 7% to 5% over 10 years cuts the monthly payment from about $464 to $424 and saves roughly $4,800 in total interest — but you lose federal protections.

Compares your current student loan payment and total interest against a refinanced rate and term, showing monthly savings and total interest saved.

How to use this calculator

1Enter your loan balance and current interest rate.
2Enter the years remaining on your current loan.
3Enter the new rate and term offered by a refinance lender.
4See your new payment, monthly change, and total interest saved.

The formula

payment=P×r1−(1+r)−n

saved=oldInterest−newInterest

payment = P × r / (1 − (1+r)^−n); saved = oldInterest − newInterest

P: — Loan balance
r: — Monthly rate = annual / 12
n: — Months = years × 12
saved: — Old total interest − new total interest

Worked example

The scenario

$40,000 balance, 7% over 10 years → 5% over 10 years.

gives

The result

Current: ~$464/month. New: ~$424/month. Saves ~$40/month and ~$4,800 in interest.

Common use cases

Borrowers with good credit and stable income chasing a lower rate.
Consolidating multiple private loans into one payment.
Comparing the savings of refinancing against keeping federal benefits.

Limitations & assumptions

Refinancing federal loans into a private loan forfeits IDR plans, forgiveness, and forbearance.
Assumes a fixed rate; variable-rate refinances can rise over time.
Does not include any lender fees (most student loan refinances have none).

Frequently asked questions

Refinancing makes sense if you can get a meaningfully lower rate and don't need federal benefits. Keep federal loans if you rely on income-driven plans or forgiveness.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.

Refinance details