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Student Loan Refinancing Break-Even

Compare your current loan with a refinance offer — including fees, term changes, and what federal borrowers give up.

Lifetime savings$3,927

Refinance comparison

Lifetime cost is lower by about

$3,927

The offer pays $458/month ($37 less than now). Against finishing your current loan in 9 yr 11 mo, refinancing saves about $3,927 in total under these assumptions — note the longer term is doing some of the payment-lowering here.

Federal loan: this trade is permanent

Refinancing a federal loan into a private one gives up — permanently — income-driven repayment, Public Service Loan Forgiveness eligibility, generous deferment and forbearance, and any future federal relief. Those protections are a form of insurance the rate table can't price. If your income is uncertain or forgiveness is plausible, they're often worth more than the savings shown.

Term extension detected

Part of the monthly savings comes from stretching payments over more years, not the rate. The lifetime figure above already accounts for it.
New monthly payment
$458
Monthly change
−$37
Remaining interest, current loan
$16,874
Total interest + fees, new loan
$12,947

What this may mean for you

Private-to-private refinancing is a pure numbers decision — take the win when the lifetime figure agrees with the monthly one. Federal-to-private is a numbers decision plus an insurance decision, and only you can weigh the second half. Variable-rate offers add a risk this fixed-rate comparison doesn't capture.

Results are estimates for educational purposes and may not reflect your complete financial or tax situation.

Understanding this calculator

Refinancing a student loan is two decisions wearing one coat. The first is arithmetic — rate, term, fees — and this calculator settles it, including the trap where a longer term makes a cheaper rate cost more in total. The second decision only applies to federal loans, and it's permanent: refinancing into a private loan surrenders income-driven repayment, Public Service Loan Forgiveness eligibility, generous deferment and forbearance, and any future federal relief.

A useful rule: private-to-private refinancing is a pure numbers decision; federal-to-private is a numbers decision plus an insurance decision. If your income is uncertain or public-service forgiveness is plausible, the federal protections are often worth more than a rate cut.

Assumptions and methodology

  • Identical break-even math to a mortgage refinance: new payment, months to recover fees, and lifetime cost including term changes.
  • Assumes fixed rates on both sides; variable-rate offers add risk this comparison doesn't capture.
  • Refinancing is not automatically beneficial — the tool reports lifetime cost and flags extended terms, and federal-protection losses are stated, not priced.

Official sources

Last reviewed August 30, 2026. Year-specific figures show their tax or data year in the tool; data is reviewed when the IRS, SSA, and CMS publish annual updates.

Common questions

The refi saves $60/month. Isn't that obviously good?

Only if the lifetime figure agrees and the protections you're giving up are worth less than the savings to you. Check whether the savings come from the rate or merely from stretching the term.

Keep going

Want a second set of eyes on this?

If you'd like to talk through what these numbers mean for your situation, you can schedule a free, no-pressure conversation. No products, no pitch — just questions answered.

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