Should you refinance your student loans?

Do not refinance federal loans if

• You use, or might need, an income-based repayment plan. Private loans do not offer federal income-driven repayment (Federal Student Aid, CFPB).
• You work, or may work, in public service or teaching. Refinanced loans are no longer eligible for federal forgiveness programs such as Public Service Loan Forgiveness and teacher loan forgiveness (Federal Student Aid, CFPB).
• Your income is not steady. You would give up federal deferment and forbearance, which let you pause payments in hardship (Federal Student Aid).
• The only offer you can get is a variable rate and a higher payment later would strain your budget (CFPB).
• You are on active duty with loans from before your service. The CFPB warns you could lose a Servicemembers Civil Relief Act interest benefit (CFPB).

Refinancing may be worth a look if

• Your loans are private and your current rate is higher than the offers you qualify for.
• You are confident you will not need federal repayment plans, forgiveness or deferment.
• You have steady income and an emergency fund, and you can get a fixed rate.
• The calculator shows lower total interest, not just a lower monthly payment.

A safer first step for federal borrowers

If your goal is one payment, a federal Direct Consolidation Loan combines federal loans and keeps them federal. If your goal is a lower payment, look at the federal repayment plans first.