Should you refinance your student loans?

The honest answer depends on one thing most advice skips: whether the loan is federal or private. Get that right and the rest is simple.

The one mistake to avoid: refinancing federal loans

When you refinance, a private lender pays off your old loan and gives you a new private one. If the old loan was federal, you permanently give up income-driven repayment, forgiveness paths like PSLF, and the generous deferment and forbearance options that come with federal debt. There is no way to undo it later.

That is why, for almost everyone, federal loans should stay federal. The interest rate is rarely worth losing protections you cannot buy back.

Private loans are the real candidates

Private loans do not carry those federal protections, so refinancing one is mostly a math question. It tends to make sense when:

• You can beat your current rate by a meaningful margin (roughly half a point or more).
• Your credit is solid; the best offers go to scores in the 700s and up.
• Your income is stable enough that you will not need to pause payments.

Checking your rate is free and safe

Most lenders show your personalized rate with a soft credit check, which does not affect your score. You only commit if you accept an offer, so there is no harm in seeing the number.

Why 2026 makes this even more important

Federal repayment is in flux: the SAVE plan has been eliminated, the new Repayment Assistance Plan (RAP) starts July 1, 2026, and IBR remains as a legacy option. With federal terms shifting, keeping that flexibility is more valuable than ever, which strengthens the case for leaving federal loans alone.