Skip links

How Often Can I Refinance My Student Loans?

How many times can I refinance my student loans? If your financial situation improves or interest rates fall, you can refinance your student loans as many times as you desire.

You can Refinance your student loans as many times as you want. It may make sense to refinance more than once, especially if your financial situation improves or private lenders lower their rates.

There are usually no origination fees or other charges associated with refinancing, and there are no prepayment fees associated with student loans.

You can save money over time if you can discover a cheaper interest rate.

Why Would You Want to Refinance your Student Loan Multiple Times?

Because you might be able to get a better rate if you earn more money and establish your credit, or if interest rates fall.

Refinancing is the act of taking out a new private loan with a lower interest rate and combining your student loans into it.

Let’s say you graduate with a $50,000 private student loan debt at an interest rate of 11%.

By the time the loan is paid off (10 years), you’ll have made $688 in monthly payments and paid $32,650 in interest.

You could save money by refinancing student loans immediately after graduation, even if rates don’t decrease significantly.

Refinancing to a 3% interest rate, for example, would save you $133.65 per month and $16,038 in interest over 10 years.

To estimate how much you could save, check our student loan refinance calculator.

Is It a Good Idea to Refinance Student Loans Multiple Times?

If you want to save money or have a more manageable payment, refinancing student loans numerous times isn’t a bad idea.

Your eligibility for loan forgiveness programs and income-driven repayment alternatives will be canceled if you refinance your federal loans.

However, if you’ve already given up those advantages, refinancing private student loans is a no-brainer.

Lenders frequently do a hard credit check before granting each new loan, and too many queries might reduce your credit ratings.

Nonetheless, it’s in your best interests to search around for the greatest deal.

Limiting your shopping to a brief window or prequalifying with various lenders before actually applying will help you avoid a greater credit hit than required.

Prequalifying does not affect your credit score, but it will tell you what rate you are eligible for.

More: Debt-To-Income Ratio Student Loan Refinancing

What to Look for When Refinancing Your Student Loans

Keep an eye out for the following loan conditions:

If you need to cut your monthly payment, it may make sense, but bear in mind that you’ll end up paying a lot more in interest in the long term. Make certain you understand your new repayment conditions and how they will influence your total student loan debt.

You want to pick a loan with the lowest feasible interest rate. Aim for interest rates of less than 10%.

Origination fees cover the lender’s costs associated with processing a new loan, such as underwriting, credit checks, and validating and processing the borrower’s papers.

Prepayment penaltiesfor student loans are prohibited. Prepayment without penalty is required of all student loan lenders. If a lender states that paying off your student loans early would result in a fee, look for another lender.

Most student loan lenders don’t charge application fees, but if one does, be aware that it will be a one-time, non-refundable price to submit your loan application.

Concentrate your hunt on lenders that don’t charge exorbitant costs but still give you a decent interest rate. You’ll be able to see red flags and narrow down the best refinancing options by knowing what each cost is.

It’s advisable to refinance your private loans separately from your federal loans in most cases.

If you refinance your federal student loans, you will lose some benefits associated with your original loans.

Flexible repayment plans, debt forgiveness possibilities, and other repayment help features like deferral and forbearance are also available.

You might not need those benefits right now, but they’ll come in handy if you lose your work or fall on hard times in the future.

Make sure to weigh the advantages of your new loan against the advantages of your previous federal loans.

You may also like: 5 Solutions If Your Student Loan Refinancing Denied

Frequently Asked Questions