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Student loan refinance rates are trending in 2025 as millions of Americans look to lower their monthly payments, save on interest, and simplify their student debt. With federal loan rates still high, private lenders competing for borrowers, and new digital tools making it easier than ever to compare offers, refinancing is on the rise. This guide covers everything: today’s rates, lender comparisons, eligibility, calculators, pros & cons, mistakes to avoid, and expert tips for US borrowers.
Compare Student Loan Refinance Rates (Credible)
📰 2025 News: Refinance Rates, Federal Loan Update & Market Trends
📉 Rates Drop Slightly in 2025: After the Fed’s recent rate cuts, student loan refinance rates have edged down. The current average fixed refinance rate is 8.86%, with the lowest offers around 5.89% and the highest near 12%—but top borrowers can find rates as low as 4.35%–4.99%.
📈 Federal Loan Rates Remain High: For 2024–2025, new federal student loan rates are 8.08% for undergraduates and 8.942% for Grad PLUS/Parent PLUS loans. Many borrowers are refinancing to escape these high rates.
🔄 Refinance Activity Surges: Digital lenders, credit unions, and fintechs are seeing record applications as more Americans seek to lock in lower rates and consolidate debt.
💡 Key Takeaway: Even a 1%–2% rate drop can save you thousands over the life of your loan.
Best Student Loan Refinance Lenders (US News)
📈 Federal Loan Rates Remain High: For 2024–2025, new federal student loan rates are 8.08% for undergraduates and 8.942% for Grad PLUS/Parent PLUS loans. Many borrowers are refinancing to escape these high rates.
🔄 Refinance Activity Surges: Digital lenders, credit unions, and fintechs are seeing record applications as more Americans seek to lock in lower rates and consolidate debt.
💡 Key Takeaway: Even a 1%–2% rate drop can save you thousands over the life of your loan.
📊 Current Student Loan Refinance Rates (May 2025)
💲 Average Refinance Rates:
See Historical Federal Student Loan Rates
- Fixed APR: 4.35% – 12.10% (most borrowers 5.89% – 9.99%)
- Variable APR: 4.33% – 12.68% (rates may rise with market)
- Overall Average Rate: 8.86% (down slightly from last week)
- Federal loan rates for new loans: 8.08% (undergrad), 8.942% (Grad/Parent PLUS)
- SoFi: 4.49% – 9.99% fixed, 5.99% – 9.99% variable (with autopay)
- Earnest: 4.35% – 9.24% fixed, 4.33% – 8.24% variable
- Laurel Road: 4.99% – 9.99% fixed, 5.99% – 9.99% variable
- College Ave: 6.99% – 13.99% fixed/variable
- ELFI: 4.88% – 8.44% fixed, 4.86% – 8.24% variable
- Brazos: 3.85% – 7.04% fixed, 4.33% – 5.73% variable (TX only)
- RISLA: 3.99% – 9.24% fixed
🧮 Student Loan Refinance Calculators: Estimate Your Savings
🧮 Why Use a Calculator? A student loan refinance calculator lets you estimate your new monthly payment, total interest, and potential savings. Enter your balance, current rate, new rate, and term to see your options.
🔢 Key Inputs: Loan balance, interest rate, term, new rate, new term.
💡 Pro Tip: Compare at least three lenders and calculate your break-even point (how long it takes for savings to outweigh any fees).
Student Loan Refinance Calculator & Pros/Cons
🔢 Key Inputs: Loan balance, interest rate, term, new rate, new term.
💡 Pro Tip: Compare at least three lenders and calculate your break-even point (how long it takes for savings to outweigh any fees).
⚡ How to Qualify for the Best Student Loan Refinance Rate
✔️ Top Factors:
Student Loan Refinance Requirements (Bankrate)
- Excellent credit score (typically 700+ for best rates)
- Stable income (often $40,000+ per year)
- Low debt-to-income (DTI) ratio (usually under 40%)
- Graduation from an eligible degree program
- Positive payment history
- Cosigner (if needed for better rates or approval)
- Check your credit and pay down other debts before applying
- Use prequalification tools to compare rates without hurting your credit
- Consider a shorter term for a lower rate (but higher payment)
- Shop around and get offers from multiple lenders
- Ask about autopay discounts (usually 0.25%)
✅ Pros & Cons of Refinancing Student Loans
👍 Pros:
Pros & Cons of Student Loan Refinancing (Laurel Road)
- Lower interest rate and monthly payment
- Consolidate multiple loans into one payment
- Flexible terms (5–20 years)
- Remove a cosigner
- Switch from variable to fixed rate (or vice versa)
- Potential to save thousands over the life of your loan
- Lose federal loan benefits (income-driven repayment, forgiveness, forbearance)
- Need excellent credit and steady income for best rates
- Variable rates may rise over time
- May pay more interest if you extend your loan term
- Not all loans or borrowers qualify
📝 Step-by-Step: How to Refinance Student Loans
1️⃣ Check Your Credit: Know your score and fix any errors.
2️⃣ Review Your Loans: Know your balances, rates, and terms.
3️⃣ Compare Lenders: Get prequalified rates from at least three lenders.
4️⃣ Choose Your Loan Terms: Decide on fixed or variable rate and repayment period.
5️⃣ Apply: Submit your application and documents (ID, pay stubs, loan statements).
6️⃣ Continue Payments: Keep paying your old loans until the new lender pays them off.
7️⃣ Set Up Autopay: Update your payment info and enjoy your new lower rate.
How to Refinance Student Loans (NerdWallet)
2️⃣ Review Your Loans: Know your balances, rates, and terms.
3️⃣ Compare Lenders: Get prequalified rates from at least three lenders.
4️⃣ Choose Your Loan Terms: Decide on fixed or variable rate and repayment period.
5️⃣ Apply: Submit your application and documents (ID, pay stubs, loan statements).
6️⃣ Continue Payments: Keep paying your old loans until the new lender pays them off.
7️⃣ Set Up Autopay: Update your payment info and enjoy your new lower rate.
💡 Practical Tips, Mistakes to Avoid & FAQ
💡 Expert Tips:
Avoid Student Loan Refinancing Mistakes
- Don’t refinance federal loans unless you’re sure you won’t need income-driven repayment or forgiveness
- Use calculators to compare savings with different terms and rates
- Check for lender fees (origination, late, prepayment)
- Make sure your new payment fits your budget
- Consider a cosigner if your credit isn’t strong enough
- Monitor your credit after refinancing to ensure loans are closed
- Refinance again if rates drop further—there’s no limit
- Comparing a shorter-term refinance to a longer original loan (apples-to-oranges savings)
- Ignoring the loss of federal benefits
- Not shopping multiple lenders
- Choosing the longest term just for a lower payment (may pay more overall)
- Not continuing payments during the transition
- Can I refinance federal and private loans together? Yes, but all loans become private and lose federal protections.
- How soon can I refinance? Most lenders allow refinancing after graduation and a few months of payments.
- Does refinancing hurt my credit? There may be a small, temporary dip from a hard inquiry, but on-time payments can help your score long term.
- Can I refinance with bad credit? Yes, but rates will be higher; a cosigner can help.
- Are there fees to refinance? Some lenders charge origination or late fees—always ask before applying.
- Can I refinance again if rates drop? Yes, you can refinance as often as you qualify and it makes sense.
- Should I refinance if I’m close to paying off my loans? Usually not, unless you need immediate payment relief.
©️ 2025 | Student Loan Refinance Rates: Complete Guide for US Borrowers