Student Loan Refinancing Calculator

Is refinancing your student loan the best way to go? Use this quick and easy Student Loan Refinancing Calculator to see how your current loan rate stacks up to the competition. Typically the lower the rate, the happier your wallet will be.

Student Loan Refinancing Calculator

Step 1: Current loan info

Student loan balance

Average interest rate

Remaining loan term (yr)

Step 2: New loan info

New interest rate

New loan term (years)

Most Student Loan Borrowers Think They’ll Have Debt Forever: Survey

When student loan balances seemingly grow each month — not shrink as they’re supposed to — it’s easy for borrowers to think the finish line keeps moving further away. That thought is even more common than you might imagine.

A new Student Loan Hero survey found that 53% of borrowers believe they’ll be making student loan payments for the rest of their lives. That number jumps to 74% among borrowers with at least six figures to repay. (And note that these responses were from early February, when concern over the coronavirus in the U.S. was relatively mild.)

“It’s hard to juggle all of my expenses and actually make progress on paying off the actual loans, rather than just the interest,” one the respondents said.

Still, not everyone is pessimistic about the future of their repayment, with confidence varying by generation and gender, as well as whether the borrower in question has a strategy to deal with their debt. Here’s what we found ...

Key findings

  • Those 53% of student loan borrowers who see no end in sight pointed to specific obstacles. Among these, not earning enough funds was seen as the greatest impediment, cited by 27%. (More here)
  • Gen X borrowers (ages 40 to 54) had the bleakest outlook toward student debt, with 57% assuming they’ll be paying their student loans for as long as they live. About 55% of millennials and 42% of Gen Zers were similarly discouraged. (More here)
  • Along gender lines, female borrowers were more likely to have dire student loan payoff expectations: 57% said they didn’t expect to ever repay their education debt, compared to 47% of men.
  • Among the more confident crowd of borrowers, 47% said they planned on becoming free of all education debt within the next five years. Their most popular repayment strategy was paying more than the minimum due on their loans each month (52%). (More here)

Common obstacles bring down many student loan borrowers

More than 7 out of 10 borrowers with at least $100,000 in outstanding education loans said they thought their debt would outlive them. This is despite the fact that large student loan balances are common among relatively high-income earners — such as doctors, lawyers and other professionals — who are prime candidates to lower their rates via student loan refinancing.

Of course, even more modest debt totals can be daunting, especially for those earning lower wages. And income was just of four key obstacles that the survey respondents said were the biggest factor blocking a more successful repayment:

  • Low income (27% of respondents): How much you earn is, of course, a major factor in how you view your debt, which is why borrowers on a budget should spend just as much time (if not more) increasing their income compared to decreasing their expenses.
  • High interest rates (25%): Heavy interest costs can put drag on repayment. The only way to reduce your interest rate significantly is through student loan refinancing, though this requires either good credit or a creditworthy cosigner.
  • Large balances (23%): A big debt figure can be intimidating. The best way to fight this is with a long-term repayment strategy.
  • Additional debt obligations (22%): Prioritizing the payoff off higher-interest debt, like that of credit cards, is generally recommended, but borrowers should consider whether the snowball or avalanche method is right for them.

The pessimism over student debt repayment isn’t new. Our 2019 report on debt hindering personal milestones found that less than half (44%) of respondents were fully confident they could afford their ensuing monthly payment.

Borrower optimism varies by generation and gender

The older the borrower, the more likely they were to say their education debt felt endless: 41% of Gen Zers (ages 18 to 23), 55% of millennials (ages 24 to 39) and 57% of Gen Xers (ages 40 to 54) said they believe their debt will span their lifetimes.

That’s to be expected, as research shows that a majority of parent PLUS loan borrowers — that is, Moms and Dads who borrow federal loans on their children’s behalf — struggle in repayment, putting their retirement in peril.

Besides older borrowers, female respondents were also more likely to show pessimism about repaying their loans. Nearly 6 in 10 (57%) said their education debt would prove to be never-ending, compared with about 5 in 10 (47%) of male borrowers.

These results echo past research by Student Loan Hero indicating that women are more likely than men to see their student debt as unmanageable.

The obstacle in front of many borrowers — especially women — was income. Female respondents were more likely to say they don’t make enough money (30%) for their repayment, compared to 23% of males.

The difference between men and women in confidence surrounding salaries is very likely tied to the gender pay gap. According to our 2019 personal milestones survey mentioned above, only 44% of women said their annual salary was more than their student loan balance, compared to 59% of men.

More hopeful borrowers rely on student loan strategies

But while the glass is half empty, so too is it half full. About 47% of those surveyed said they planned to be free of their student debt within the next five years. To do so, 86% of these more confident borrowers said they were relying on at least one repayment strategy. Specifically ...

  • Paying more than the minimum due (52% of respondents): You can calculate the benefit of this aggressive tactic using Student Loan Hero’s lump-sum extra payment and loan prepayment calculators
  • Trimming their budget (33%): Coming up with that larger monthly payment amount can be chalked up to cutting unnecessary expenses.
  • Refinancing to a lower interest rate (21%): Student loan refinancing is the only way for borrowers to reduce their average rate by a significant margin. But, like anything else, there are pros and cons to refinancing.
  • Added an income stream (19%): Whether through a side hustle, a part-time job or a pay raise, there’s no limit on any borrower’s potential income.

Of course, feeling confident about repayment is also about control. And with measures like these, borrowers have more control over their fate. In fact, each of these tactics are also featured in our student loan payoff success stories.

Confidence is key to a successful student loan repayment

You don’t have to major in behavioral economics to know that your attitude can affect your outcome. That’s why it’s so important for student loan borrowers to feel empowered about their repayment.

Unfortunately, as our survey results indicate, more than half of all borrowers don’t feel they’re in the driver’s seat — a finding that squares with our 2020 survey on student loan-induced depression.

To combat these unhelpful feelings, consider the strategies that the more confident borrowers surveyed are using. You can try sneaking in an extra payment or two. Or if you can’t afford that, take a hard look at your budget. Alternatively, if you don’t yet qualify for student loan refinancing, try improving your debt-to-income ratio with a moneymaking side hustle.

For more information, here are some specific Student Loan Hero guides:

Methodology

Student Loan Hero conducted an online survey of 1,007 Americans who have student loan debt, with the sample base proportioned to represent the overall population. The survey was fielded online using Qualtrics from Feb. 5-10, 2020.

Generations are defined as the following ages in 2020:

  • Generation Z: 18-23
  • Millennials: 24-39
  • Generation X: 40-54
  • Baby boomers: 55-74
  • Silent Generation: 75 and older

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.


Looking for the best way to outsmart your student loan?

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Looking for the best way to outsmart your student loan?

Learn the smartest way to set up prepayments

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See how a faster repayment plan can equal big savings

An easy-to-follow guide for:

  • Paying less interest
  • Consolidating more than one loan
  • Lowering your monthly bill, paying off your student loan faster, or both
EXPLORE YOUR OPTIONS

Interested in refinancing student loans?

Here are the top 6 lenders of 2020!
LenderVariable APREligible Degrees 
1.99% – 5.64%1Undergrad
& Graduate

Visit Earnest

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.09%3Undergrad
& Graduate

Visit SoFi

1.89% – 6.77%4Undergrad
& Graduate

Visit Splash

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

1.99% – 5.41%5Undergrad
& Graduate

Visit CommonBond

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of September 9, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.09% APR (with AutoPay). Variable rates from 2.25% APR to 6.09% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 10, 2020.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective August 10, 2020.

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.