Compare your current student loan vs. a refinance. See monthly savings, total interest saved, and how extra payments accelerate payoff.
The Student Loan Refinance Calculator compares your existing student loan to a new refinance offer, showing the new monthly payment, monthly savings, total interest saved, and payoff time. It also handles extra payments so you can see how much faster you'd clear the loan on the new rate.
The calculator amortizes both loans with the standard installment formula and compares interest paid over each schedule. Break-even divides any refinance fees by the monthly savings.
M = P × r × (1 + r)^n / ((1 + r)^n − 1)
Interest saved = Σ interest(old) − Σ interest(new)
Break-even months = Fees / (Old payment − New payment)Refinancing a $45,000 private student loan from 7.5% (10 years left) to 5.75% over 10 years with no fees drops the payment from about $534 to $493 — roughly $41/month — and saves close to $4,900 in total interest over the life of the loan.
Refinancing federal loans to a private lender permanently forfeits income-driven repayment, deferment, forbearance, and Public Service Loan Forgiveness (PSLF). Only refinance federal loans if you have strong credit, stable income, and are certain you won't need those protections.
Most private lenders want a FICO score of 680+ for approval and 740+ for the best advertised rates. A creditworthy co-signer can help borrowers below that threshold qualify.
Yes — you can refinance private loans alone and keep federal protections, or refinance both together into a single private loan. Splitting the two lets you preserve federal benefits on the federal portion.
Yes. A new term restarts amortization. Choosing a term equal to or shorter than what's left on your current loan avoids paying more total interest just because you stretched the payoff.
Yes — every extra dollar goes to principal, lowering next month's interest. Adding $50–$100/month on a 10-year refinance can shave off a year or more and save hundreds to thousands in interest.
Most reputable private student loan refinance lenders (SoFi, Earnest, Laurel Road, ELFI) charge no application, origination, or prepayment fees. Always confirm before signing.
Student loans are amortizing installment loans — the same math as auto and personal loans — but the terms, rates, and repayment plans are unique. US federal loans have fixed rates set each July, standard 10-year terms, and income-driven options. Private loans price on credit and can be fixed or variable. Whichever type you have, the monthly payment depends on three inputs: balance, interest rate, and term.
$27,000 balance at 6.53% on the Standard 10-year plan = about $307/month, with roughly $9,850 total interest over the life of the loan.
$60,000 balance at 8.08% on a 10-year term = about $730/month, with roughly $27,600 total interest paid.
Refinancing $45,000 from 7.5% to 5.75% over 10 years drops the payment from $534 to $493 and saves close to $5,000 in interest — if you don't need federal protections.
Student loans use the standard amortizing-loan formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the balance, r is the monthly interest rate (APR ÷ 12), and n is the number of months. Federal loans typically use a 10-year (120-month) standard term.
US federal undergraduate Direct loans for 2024–25 are 6.53% fixed, graduate Direct loans 8.08%, and PLUS loans 9.08%. Private student loan rates typically range from 4% to 15% depending on credit and whether you choose fixed or variable.
The Standard 10-year plan has the highest monthly payment but the lowest total interest. Income-driven plans (SAVE, IBR, PAYE) lower payments based on income but extend the term to 20–25 years, so total interest paid is usually much higher unless forgiveness applies.
Refinancing to a private lender can reduce your rate if you have strong credit and stable income, but it permanently forfeits federal benefits: income-driven plans, deferment, forbearance, and Public Service Loan Forgiveness (PSLF). Only refinance federal loans if you're certain you won't need those protections.
Yes. Every extra dollar goes to principal, which lowers the balance interest is charged on next month. Just $50 extra per month on a $30,000 loan at 6% over 10 years pays it off about 18 months early and saves roughly $1,600 in interest.
Use the dedicated Student Loan Calculator to see your monthly payment and total interest.