Student Loan Refinance Calculator

Reasons to consider student loan refinancing

After you graduate, student loan debt might feel insurmountable, but it doesn’t have to stress you out. Refinancing might be a smart move if any of the following apply:

• A lower rate or shorter term is available. If interest rates have fallen since you took out your student loans, then refinancing to a lower rate could reduce your monthly payments.
• You want to change between a fixed and variable rate loan. Switching to a lower fixed rate could save you money over the life of your loan. If interest rates are expected to rise, refinancing your variable rate loans could help you lock in a lower rate before that happens.
• Your finances have improved. If your credit score, debt-to-income ratio (DTI), or your annual income has improved, you could be eligible for a better interest rate.
• You want to reduce the number of loans in repayment. If you currently have multiple student loans in repayment, keeping track of different monthly payment amounts to different lenders can be a challenge. Through refinancing, you pay off your existing loans and combine the debt into one new loan with a potentially lower interest rate and term, giving you just one student loan payment to manage each month. Simplifying to one monthly payment can make repayment tracking easier and help you avoid late payment fees.

Note that refinancing federal student loans with a private lender means you’ll lose access to federal benefits and protections, such as federal forbearance and forgiveness programs, so visit studentaid.gov to make sure you understand all your options.

Learn more about KeyBank’s student loan refinancing options here.