How to Refinance Your Student Loans in 7 Steps [Federal and Private]

Refinancing student loans can help you lower your interest rate, cut monthly payments, or pay off debt faster. Whether you have private or federal loans, refinancing replaces your current loan with a new one, ideally with better terms. But it’s not always the right move.

In this guide, we’ll walk you through how to refinance in seven clear steps, from checking your eligibility to comparing lenders, applying, and finalizing the transfer—plus tips to help you save more and avoid common pitfalls.

If you can lower your interest rate by at least 0.50% and don’t rely on federal loan benefits like income-driven repayment or forgiveness, refinancing may be a smart move. Compare offers from at least three lenders before applying.”

Erin Kinkade , CFP®, ChFC®

Table of Contents

1. Decide whether refinancing is the right move
2. Check your eligibility
3. Prequalify with several potential lenders
4. Choose the best student loan refinance lender
5. Submit your refinance application
6. Review your offer and sign your loan agreement
7. Payoff and transfer
FAQ

Here’s a quick overview of how student loan refinancing works:

6-step process to refinance student loans in 2025

1. Decide whether refinancing is the right move

Student loan refinancing can lower your interest rate, reduce monthly payments, or help you pay off your loans faster. But it’s not the right fit for everyone, especially if you have federal loans, which come with forgiveness and income-driven repayment options.

Before refinancing, ask yourself:

Do I have private loans, federal loans, or both?
Am I eligible for any forgiveness programs?
Will refinancing actually save me money?
Can I qualify for a better interest rate with my credit and income?

If you have federal loans, refinancing with a private lender means giving up key benefits like Public Service Loan Forgiveness (PSLF), IDR plans, and federal forbearance options. It’s important to weigh the pros and cons.

Feature	Federal loans	Refinance with private lender
Income-driven repayment plans	✔️ Yes	❌ No
PSLF or forgiveness programs	✔️ Yes	❌ No
Forbearabce or deferment during hardship	✔️ Broad coverage	⚠️ Limited (varies by lender)
Interest rate discounts	❌	✔️ Possible (with good credit)
Customizable loan terms	⚠️ Limited	✔️ Wide range available

Note: Once you refinance, you can’t go back to federal loan protections.

Use our refinance calculator to estimate how much refinancing might save you over time:

Student Loan Information

Current Loan Balance

Annual Interest Rate

Loan Terms (Years)

Prepayment Goal

Pay off student loans faster by
contributing more per month

Pay off student loans by a
chosen date

Pay Off Student Loans in (Years)

Calculator Results

	Current	New	Savings
Repayment Length	years	years	years
Interest Payments
Total Cost

You could save overall on your student loans and pay them off years ahead of schedule.

2. Check your eligibility

Refinancing isn’t guaranteed. Most lenders have specific eligibility criteria, and approval depends on your credit profile, income, and loan history. Here’s what you’ll generally need:

Credit score: Most lenders look for a score of at least 650 to 680. The better your credit, the better your rate.
Income: You’ll need to show reliable income that supports your new monthly payment.
Debt-to-income ratio (DTI): Lenders want to see that your total debt, including rent or mortgage, credit cards, and student loans, is manageable.
Degree type: Some lenders prefer borrowers with a bachelor’s or associate degree from a Title IV school.
Citizenship: U.S. citizenship or permanent residency is typically required, though a few lenders accept DACA recipients or international borrowers.
Loan amount: Many lenders set minimum and maximum limits for refinancing (often between $5,000 and $500,000).

Here’s what these requirements look like for several well-known lenders:

Lender	Min. credit score	Income req.	Degree req.	Citizenship req.	Cosigner req.	Loan amts.
ELFI	680	$35K	Bachelor’s degree or higher	U.S. citizen or permanent resident	Optional, no cosigner release	$10K min.
Earnest	665	$35K	Associate or higher	U.S. citizen or permanent resident	Optional, no cosigner release	$5K min. for most borrowers
SoFi	650	None; must have disposable income	Associate or higher	U.S. citizen, permanent resident, non-permanent alien, DACA, asylum seeker	Optional, cosigner release after 24 on-time payments	$5K min.
RISLA	None	$40K	Must attend Title IV degree-granting school (no min. degree)	U.S. citizen or permanent resident	Optional, cosigner release after 24 on-time payments	$7.5K min. – $250K max.

If you meet these criteria, you’re likely a strong candidate for refinancing and ready to move on to rate shopping.

3. Prequalify with several potential lenders

Once you’ve confirmed you’re eligible to refinance, compare rates by prequalifying with three to five lenders. Most let you check your rates online with a soft credit pull, so it won’t hurt your credit score.

When you prequalify, look closely at:

Interest rate ranges (fixed vs. variable)
Estimated monthly payments and term length
Any borrower benefits, like forbearance options or autopay discounts

Tip: If your credit score or income is borderline, applying with a cosigner may help you qualify for better rates.

4. Choose the best student loan refinance lender

After comparing offers, select the lender that best fits your financial goals. Review each offer’s:

Annual percentage rate (APR)
Loan term (shorter terms save on interest)
Monthly payment
Prepayment or origination fees (if any)
Flexibility and customer reviews

Refinance federal loans only if you’re confident you won’t need income-driven repayment, deferment, or forgiveness programs.

If any part of a loan offer is unclear, reach out to the lender for clarification before moving forward.

Here are a few top-rated lenders to consider:

Company	Best for…	Rating (0-5)
5.0 View Rates	Best for Comparison Shopping	5.0 View Rates
4.9 View Rates	Best Online Lender	4.9 View Rates
4.7 View Rates Powered by Credible	Best Personalized Support	4.7 View Rates Powered by Credible
4.6 View Rates	Best Skip-a-Payment Benefit	4.6 View Rates

By comparing lenders and researching what each one offers, you can find a lender that best suits your needs.

5. Submit your refinance application

Once you’ve chosen a lender, it’s time to complete the full application. This step usually includes a hard credit inquiry, so be ready to finalize your choice.

You’ll need:

Government-issued ID (driver’s license or passport)
Proof of income (pay stubs or tax returns)
Your most recent student loan statements
Social Security number

Some lenders allow you to upload documents digitally for faster processing. If you have everything on hand, the entire application process usually takes less than 30 minutes.

How long does it take?
From application to approval and transfer, most refinancing takes two to four weeks. Responding quickly to requests from your lender can speed things up.

6. Review your offer and sign your loan agreement

Once your lender officially approves you, it will send you a final loan offer. Review every detail before signing:

Interest rate and loan term
Repayment schedule and first due date
Fees (if applicable)
Autopay discounts or other benefits

Even if you’re eager to lock in a lower rate, take time to ensure the offer matches what you expected. If you’re unsure about any terms, ask your lender before signing.

Pro tip: Some lenders offer a 0.25% interest rate discount if you sign up for autopay. Make sure this is included in writing before you commit.

7. Payoff and transfer

Once you sign your new loan agreement, your new lender will pay off your old loans. Your previous servicer will mark your account as paid in full, and your new loan will take its place.

Be sure to:

Keep making payments on your old loan until the balance shows zero
Confirm that your old account is fully closed
Set up your new online account and first payment with the new lender

If your old loan was overpaid during the transfer, your previous lender will issue a refund.

Still unsure?
Reach out to your old and new lenders to confirm timelines and avoid missing payments during the transition.

FAQ

Can I refinance both federal and private student loans?

Yes. You can refinance both types into a single private loan. Just keep in mind that you’ll permanently give up federal benefits if you refinance federal loans.

Does refinancing hurt my credit score?

Checking rates through prequalification won’t hurt your score. A hard credit check is required when you formally apply, which may cause a slight, temporary dip.

How many times can I refinance?

There’s no limit. You can refinance more than once, as long as you qualify. Some borrowers refinance multiple times to get better rates as their credit improves.