How Often Can You Refinance Student Loans?

If you’re wondering how often you can refinance student loans, the answer is as many times as you want as long as you qualify. Most lenders don’t limit the number of times you refinance your student loans, but there are still pros and cons you should be aware of before pursuing it.

For example, refinancing your student loans can help you lower your interest rate and get more favorable loan terms. However, if you refinance federal student loans into private loans, the downside is you lose many federal protections, including the potential for student loan forgiveness. Here’s everything you need to know about refinancing your student loans more than once.

How often can I refinance student loans?

You can refinance your student loans as many times as you like as long as your credit is in good standing and you qualify. We’ve listed several drawbacks to refinancing below, but the benefits include securing a lower interest rate and better terms.

Refinancing your student loans is different from consolidating federal student loans. If you have federal student loans, you can apply for a Direct Consolidation Loan, where you combine all your federal student loans into one with a single payment. Direct consolidation can streamline your payments, but it can also restart your qualifying payments toward loan forgiveness. 

Refinancing, on the other hand, is when you move your federal student loans to a private student loan lender. You can also refinance private student loans into a new private student loan with better terms. You can repeat this process regularly to secure lower interest rates, change lenders, or release a cosigner.

Pros and cons of refinancing student loans multiple times

Although you can refinance your student loans several times, consider the pros and cons before doing so. The pros and cons can also vary by lender, so make sure you understand whether your lender charges fees each time you refinance. 

Here are some of the main benefits and drawbacks of refinancing your student loans:

It’s important to ensure that refinancing a loan aligns with your short-, mid-, and long-term financial goals. Refinancing solely for short-term relief can have unintended consequences, such as losing valuable lender benefits like unemployment protection or financial coaching (which can be offered by private student loan providers!). 

Additionally, opting for a variable-rate loan when interest rates are low could lead to unaffordable payments if rates rise. The key is to make an informed decision—carefully evaluate the trade-offs and consider consulting a financial professional specializing in student loans for guidance.

Erin Kinkade , CFP®, ChFC®

When should you refinance your student loans?

Even though you can refinance your student loans more than once, it’s still important to do your research and make a plan. It doesn’t always make sense to refinance your student loans, but here are situations when it would be a good idea. 

Keep in mind that deciding to refinance your student loans is a personal decision that will affect your cash flow and your credit score. 

If one or more of these events happen in your life, consider refinancing your student loans:

• If interest rates drop: Private student loan lenders often base their interest rates on the prime rate. When the prime rate is low, interest rates are lower. For example, in March 2020, the prime rate was 3.25%, but in December 2024, it was 7.50%, according to JP Morgan Chase. If interest rates drop, even by 0.50%, it makes sense to consider refinancing.
• If your credit score goes up: If your credit score improves, especially if you have a good or excellent score now when you didn’t before, you could qualify for a lower interest rate if you refinance your student loans.
• If you get a raise: If you get a raise at work and have more job stability, consider refinancing. You could qualify for a lower interest rate if you can afford the higher monthly payments that come with securing a shorter loan term. 
• If you have a variable rate: If your current student loan has a variable interest rate, consider refinancing it to a fixed rate. That way, you have predictable monthly payments and don’t need to worry about your rate going up.
• If you want to lower your monthly payments: If you need lower monthly payments, refinancing to a loan with a longer term can help.
• If you want to consolidate several loans: If you have several student loans, refinancing them into one larger loan can streamline your payments and give you one interest rate.
• If you want to remove a cosigner: According to Enterval Analytics, over 93% of private undergraduate loans in 2023 – 2024 had a cosigner. Once you have a higher income or credit score to qualify for a loan on your own, you can refinance your student loans in your own name and release your cosigner from liability.
• If you don’t like your lender: Not all lenders have good customer service. If you have issues with your lender or don’t like one of the company’s policies, you can refinance to a different lender.

When should you wait to refinance your student loans? 

Although refinancing student loans makes sense in many situations, especially if you can save money on interest costs, there are times when it makes sense to wait before applying for a loan. 

Everyone’s personal finances are different, but in most cases, you should wait to refinance if you don’t have good credit or a stable job. It’s also wise to consider the broader economic outlook, like the future of interest rates. 

Ultimately, wait before applying for a student loan refinance if you are in one of these circumstances:

• If you have bad credit: If you currently have a low credit score, you might not qualify for student loan refinancing. If you do, you could get a higher interest rate than you have right now. Instead, take time over the next few months to improve your credit score before applying.
• If you have many debt payments: Having several debt payments in relation to your income can cause you to have a high debt-to-income ratio, which could disqualify you from getting a new loan.
• If you’re in a higher interest rate environment: Interest rates fluctuate based on economic factors. If interest rates are currently higher than when you took out your initial student loan, it doesn’t make sense to refinance.
• If you have unstable employment: If you recently lost your job or haven’t been in your current job long, wait until your employment becomes more stable. Lenders like borrowers to have been with the same employer for a while and make a consistent income.
• If you’re about to make a big life change: If you’re in the middle of moving, going back to school, getting married, or are pregnant, wait before refinancing your student loans. Although the process is much faster than it used to be, it still takes time to fill out paperwork and compare lenders.
• If you have federal student loans: Deciding to refinance federal student loans into private student loans is a serious decision. Once you refinance federal loans, you lose the flexibility and repayment options that federal loans have.  You also won’t qualify for federal loan forgiveness programs if you refinance to private loans.
• If you’ve almost paid off your loans: If you’re near the end of your loan repayment plan, it might not make sense to put in the time to compare lenders and refinance your loans. Plus, some lenders charge origination fees, which might add to your debt load.

Three key reasons to refinance federal student loans into private loans are:

1. Qualifying for a much lower interest rate

2. Not needing federal loan benefits

3. Having a stable, reliable income

Erin Kinkade , CFP®, ChFC®

Where to refinance your student loans

If you want to refinance your student loans, make sure to shop around. The best student loan refinance companies have excellent customer service, competitive rates, and offer benefits—like the ability to skip a payment, which Earnest allows—if needed. 

You can research and assess lenders individually or use a marketplace (our favorite is Credible) to compare multiple lenders at once.

Here are specific criteria to use to compare lenders:

• Customer service: Look at reviews on the Better Business Bureau, Google, and Trustpilot to see what customers say about how the company treats them.
• Loan terms: Find a lender that offers multiple loan terms—five, seven, 10, 15, 20, and 25 years are common options.
• Interest rates and fees: Compare interest rates and fees. Some lenders might offer low interest rates but charge high origination fees. Find the best overall offer.
• Refinancing limits: Most private lenders allow you to refinance your loans multiple times to take advantage of lower rates. Check to be sure your lender allows this, and find out whether you need to wait a certain amount of time before you can refinance again.
• Unique perks: Some lenders offer benefits like skipping a payment, career advice, and other discounts.
• Hard credit pulls: Find out whether a lender conducts a soft pull or a hard pull when making an introductory offer. Too many hard pulls can damage your credit. SoFi, our team’s choice for best online student refinance lender, allows you to view your prequalified rate without affecting your credit score.