With interest rates declining, student loan refinancing is becoming attractive again. But it's not right for everyone. Here's the complete analysis.
Current Refinancing Rates
- 5-year fixed: 4.50-5.25%
- 10-year fixed: 5.00-5.75%
- 15-year fixed: 5.25-6.00%
- Variable: 4.00-5.50% (starting rate)
When to Refinance
Refinancing makes sense if your current rate is above 6.5%, you have strong credit (720+), stable income, and you do NOT need federal protections (income-driven repayment, PSLF, forbearance).
When NOT to Refinance
- You're pursuing Public Service Loan Forgiveness
- You're on an income-driven repayment plan
- Your income is unstable (lose federal hardship options)
- You have less than 3 years left on your loans (savings minimal)
Best Lenders
SoFi (best rates, member perks), Earnest (most flexible repayment), Splash Financial (marketplace comparing multiple lenders), and Laurel Road (best for healthcare professionals).
