Student Loan Refinancing 101: Your Ultimate Guide

You may have already graduated college, but there’s still one more class to take: Student Loan Refinancing 101. Learn everything you need to know about refinancing your student loans, its key benefits, and how it could help you ditch student debt for good.

What Is Student Loan Refinancing?

Student Loan Refinancing is a way to save money on student loans and make them easier to manage. When you “refi” you take out a new loan with a low interest rate from a private lender that replaces your old loans. You get to customize the refinance to meet your needs — whether that be lowering your monthly payment, getting out of debt faster, or even both.

You can refinance federal student loans, private student loans, or a combination of both. With refinancing, you will have just one loan payment going forward rather than several, making it easy to stay on track. Plus, you can save some serious money — that’s the bottom line.

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Top Reasons to Refinance Your Student Loans

Refinancing can provide a customized repayment solution to fit your student loan situation and payoff goals.

Save Money on Interest

When you refinance student loans, you could qualify for a much lower rate than you currently have — allowing you to save thousands on lifetime interest.

Simplify Your Student Loans

Student loan refinancing combines your various college loans into one new loan — making your student debt much easier to manage and track.

Change Your Repayment Term

With refinancing, you can select a new term to match your student loan payoff goals: shorter to get rid of your debt faster and save more on interest, or longer to lower your monthly payment.

Student Loan Refinance Eligibility: Tips to Get Lower Rates

Student loans can be overwhelming! Depending on how much you have in student loan debt, they can be a burden for years to come. Often people with large student loan debt balances or high student loan interest rates would like to refinance but aren’t sure if they’d qualify. Let’s look at the student loan refinance process and some tips that will make it easier for you to get the lowest possible interest rate.

How Much Can You Save With Student Loan Refinancing?

If you are a college grad who has a professional career and not a lot of free time, you may be wondering if refinancing your student loan debt is worth the time. You want to do the research and pick the right lender, but can you save enough money to make it pay off in the long run?

Will Refinancing Student Loans Hurt My Credit Score?

Refinancing your student loans can have a positive impact on your financial situation, opening up opportunities for lower interest rates and more flexibility with your monthly payments. But you may be wondering, will refinancing student loans hurt my credit? Not necessarily, and in many cases, it can help as long as you pay your bills on time. Plus, comparing student loan refinance rates through Purefy has no impact on credit whatsoever.

Are There Fees to Refinance Student Loans?

If you are considering refinancing your student loans, you may be worried that there are fees to refinance student loans. No wonder! It seems like there is extraordinarily little in this world that doesn’t come with some kind of charge or cost. However, at Purefy, there is never a fee to compare your student loan refinance rates, or to apply for a refinance through one of our top-rated lending partners.

See How Much You Can Save

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Student loan refinancing combines your current loans into a single loan with a new rate and term. See how much you can save by entering your loan information below, or by getting quotes from multiple lenders using Purefy’s rate comparison tool.

Step 1: Enter Current Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Current Monthly Payment
The total amount of your monthly student loan bill.
Add Multiple Loans to Calculate

Step 2: Enter New Loan Information

New Interest Rate
Your updated interest rate after refinancing student loans.
The length of time you have to repay your student loan debt in full.

Add Multiple Loans

Insert additional loan

Step 3: See How Much You Can Save


Lifetime Interest


New Monthly



Current Loan New Loan Savings
Rate 6.7% 4.2% 2.5%
Lifetime Interest $37,520 $22,210 $15,310
Monthly Payment $1,146 $1,018 $128

Like what you see? Check your actual prequalified rates from the industry’s top lenders in just 2 minutes or less.

Is It a Good Idea to Refinance Student Loans?

Student loan refinancing isn’t for everyone, but in the right situation, it can help you save money, simplify your repayment plan and give you more flexibility with your monthly payments.

To determine whether or not it’s a good idea for you to refinance your student loans, think about your current financial situation and your goals. Refinancing federal loans, for instance, means that you’re giving up access to income-driven repayment plans and forgiveness programs, which could be key if your job security isn’t certain.

Also, think about what you want your student loan repayment plan to look like. Do you want a lower payment, even if it might mean being in debt a few extra years? Do you want to get out of debt as fast as possible? Or maybe a little bit of both? Refinancing could be the ticket to getting your finances on track.

Take your time to look at what top student loan refinance companies are offering and use our student loan refinancing calculator to get an idea of how you want to tackle your student loans.

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How Much Can You Save On Your Student Loans?

Ready to lower your student loan rate in just a few minutes?

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Learn How to Manage Your Student Debt with Purefy’s Free eBook

Purefy is proud to offer Conquering Student Loan Debt, a comprehensive 13-page eBook for navigating student loan debt and achieving financial freedom. In this guide, you will learn:

More Student Loan Refinancing How-Tos & Guides

Considering refinancing your student loans? Learn all about how to take advantage of its benefits — including saving money and getting more flexible terms.

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