Student loan refinance
Student loan refinancing replaces existing student loans with a new private loan, usually with new terms.
What this page covers
This explainer is designed to show what the option is, how the basic mechanics work, and which details people commonly compare before looking at providers, products, or tools.
- Plain-English steps for how student loan refinance works.
- A simple example that shows the moving parts without selecting a product.
- Comparison factors, calculators, and source links for deeper research.
How it works
A private lender reviews credit, income, loan amount, and other application details.
If approved, the new loan pays off selected existing loans.
The borrower repays the new private loan under its rate, term, and payment schedule.
Federal loan benefits may be lost when federal loans are refinanced into a private loan.
Simple example
A borrower compares keeping federal loans with refinancing into a private fixed-rate loan.
Refinancing terms, approval, and borrower protections vary by lender and loan type.