For federal vs. private loan strategy, repayment plans, and forgiveness pathways, see the Student Loans hub.
Current Student Loan Refinancing Rates
Refinancing rates depend on your credit profile, income, loan amount, and chosen term. Here’s what to expect in 2025.
Rate Ranges by Credit Score
Fixed Rates
| Credit Score | Rate Range | Best Available |
|---|---|---|
| 760+ (Excellent) | 5.00% - 7.50% | 5.00% |
| 720-759 (Very Good) | 5.75% - 8.50% | 5.75% |
| 680-719 (Good) | 6.50% - 10.00% | 6.50% |
| 650-679 (Fair) | 8.00% - 12.00% | 8.00% |
| Below 650 | May need cosigner | – |
Variable Rates
| Credit Score | Rate Range | Best Available |
|---|---|---|
| 760+ (Excellent) | 4.75% - 7.00% | 4.75% |
| 720-759 (Very Good) | 5.50% - 8.00% | 5.50% |
| 680-719 (Good) | 6.25% - 9.50% | 6.25% |
| 650-679 (Fair) | 7.75% - 11.50% | 7.75% |
Rates by Loan Term
| Term Length | Fixed Rate Range | Variable Rate Range |
|---|---|---|
| 5 years | 5.00% - 8.00% | 4.75% - 7.50% |
| 7 years | 5.25% - 8.50% | 5.00% - 8.00% |
| 10 years | 5.50% - 9.00% | 5.25% - 8.50% |
| 15 years | 6.00% - 10.00% | 5.75% - 9.50% |
| 20 years | 6.50% - 11.00% | 6.25% - 10.50% |
Top Refinancing Lenders Comparison
| Lender | Fixed APR | Variable APR | Loan Amounts | Min. Credit Score |
|---|---|---|---|---|
| SoFi | 5.24% - 9.99% | 5.24% - 9.99% | $5,000 - No max | 650 |
| Earnest | 5.19% - 9.74% | 5.24% - 9.79% | $5,000 - $500,000 | 650 |
| Laurel Road | 5.24% - 9.74% | 5.24% - 9.24% | $5,000 - No max | 660 |
| CommonBond | 5.24% - 9.15% | 5.24% - 9.15% | $5,000 - $500,000 | 660 |
| Citizens Bank | 5.49% - 11.19% | 5.89% - 10.99% | $10,000 - $750,000 | 670 |
| First Republic | 5.25% - 7.75% | N/A | $20,000+ | 700 |
| Splash Financial | 5.24% - 9.59% | 5.24% - 9.59% | $5,000 - $500,000 | 650 |
| ELFI | 5.24% - 9.99% | 5.24% - 9.99% | $15,000 - $500,000 | 680 |
Rates as of 2025; subject to change
Monthly Payment Comparison
$50,000 Loan Balance
| Current Rate | Refi Rate | Old Payment | New Payment | Monthly Savings |
|---|---|---|---|---|
| 7.0% | 5.5% | $581 | $543 | $38 |
| 7.5% | 5.5% | $594 | $543 | $51 |
| 8.0% | 5.5% | $607 | $543 | $64 |
| 8.5% | 5.5% | $620 | $543 | $77 |
Based on 10-year term
$100,000 Loan Balance
| Current Rate | Refi Rate | Old Payment | New Payment | Total Savings |
|---|---|---|---|---|
| 7.0% | 5.5% | $1,161 | $1,085 | $9,120 |
| 7.5% | 5.5% | $1,187 | $1,085 | $12,240 |
| 8.0% | 5.5% | $1,213 | $1,085 | $15,360 |
| 8.5% | 5.5% | $1,240 | $1,085 | $18,600 |
Based on 10-year term
Fixed vs. Variable Rates
Fixed Rate Pros & Cons
| Pros | Cons |
|---|---|
| Predictable payments | Usually higher initial rate |
| Protection from rate increases | No benefit if rates fall |
| Easier budgeting | – |
Variable Rate Pros & Cons
| Pros | Cons |
|---|---|
| Lower initial rate | Payment can increase |
| May save money if rates fall | Uncertainty/budgeting harder |
| Good for short-term loans | Risky for long terms |
When to Choose Each
| Choose Fixed If… | Choose Variable If… |
|---|---|
| Longer repayment term (10+ years) | Shorter term (5-7 years) |
| Value payment predictability | Can handle payment increases |
| Rates are historically low | Rates are historically high |
| Risk-averse | Comfortable with fluctuation |
Should You Refinance? Decision Matrix
Good Candidates for Refinancing
| Factor | Why It Helps |
|---|---|
| Credit score 720+ | Qualifies for best rates |
| Stable high income | Lower default risk to lenders |
| Private loans only | No federal protections to lose |
| High interest rate (7%+) | More room for savings |
| No PSLF plans | Don’t need forgiveness |
Poor Candidates for Refinancing
| Factor | Why It’s Risky |
|---|---|
| Pursuing PSLF | Refinancing disqualifies you |
| Unstable income | May need IDR flexibility |
| Credit score below 680 | Won’t get good rates |
| Federal loans under 5% | Hard to beat with refinancing |
| Need forbearance options | Federal has better protections |
What You Lose When Refinancing Federal Loans
| Lost Benefit | Value |
|---|---|
| Income-driven repayment | Payments capped at 5-15% of income |
| Public Service Loan Forgiveness | 10-year tax-free forgiveness |
| Federal forbearance | Up to 36 months |
| Death/disability discharge | Loan cancelled |
| Teacher Loan Forgiveness | Up to $17,500 forgiven |
| Interest subsidy (subsidized loans) | Government pays interest |
Refinancing Calculator Example
Scenario: $80,000 federal loans at 6.8%, 10-year term
| Option | Monthly Payment | Total Interest | Notes |
|---|---|---|---|
| Keep Federal | $920 | $30,368 | Keep protections |
| Refi to 5.0% Fixed | $849 | $21,845 | Save $8,523 |
| Refi to 4.5% Variable | $828 | $19,295 | Save $11,073 (if rate stays) |
Break-even: If you lose your job and need IDR for 2+ years, refinancing may cost more than it saves.
How to Get the Best Refinancing Rate
Step 1: Improve Your Credit Score
| Action | Impact |
|---|---|
| Pay down credit cards | +20-50 points |
| Correct errors on report | +10-50 points |
| Don’t open new accounts | Prevents drops |
Step 2: Lower Your DTI
| Action | Impact |
|---|---|
| Pay down other debt | Improves approval odds |
| Increase income | Lowers DTI ratio |
Step 3: Compare Multiple Lenders
| Tip | Why |
|---|---|
| Get quotes from 5+ lenders | Rates vary by 1-2% |
| Apply within 14-30 day window | Multiple inquiries count as one |
| Consider credit unions | Often lower rates |
Step 4: Choose the Right Term
| Term | Best For |
|---|---|
| 5 years | Lowest total cost, highest payment |
| 10 years | Balanced payment and interest |
| 15-20 years | Lowest payment, highest total cost |
Key Takeaways
-
Best rates require 750+ credit — Work on your score before applying
-
Private loan borrowers benefit most — No federal protections to lose
-
Federal borrowers: proceed with caution — PSLF, IDR, and forbearance are valuable
-
Compare multiple lenders — Rates can vary by 2%+ for the same borrower
-
Shorter terms save more — But balance savings against payment affordability
-
Variable rates are risky long-term — Consider fixed for 10+ year terms
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy