Typically, student loan borrowers cannot refinance their debt until they graduate or withdraw from school. At that point, federal student loans and the majority of private student loans have a grace period, so it can make sense to refinance right before the grace period ends.
Depending on your financial situation, the goal of refinancing may be to get a lower interest rate and/or have lower monthly payments. Doing so can alleviate some of the stress you may feel when repaying your debt. In this guide, you’ll learn how soon you can refinance student loans, and what options are available, plus the potential benefits and downsides of each.
Table of Contents
Key Points
• Most borrowers can refinance after graduation or when they leave school; some lenders allow earlier refinancing with strong financials.
• Refinancing federal loans with a private lender forfeits federal benefits like income-driven repayment and forgiveness.
• It’s possible to refinance only select loans, such as those with high rates or variable interest rates.
• You may refinance with a cosigner if you don’t meet a lender’s eligibility criteria.
• Alternatives include federal loan consolidation, income-driven repayment plans, or interest-only payments while still in school.
What Do Your Current Loans Look Like?
Before deciding whether or not to refinance your student loans, you need to know where your loans currently stand. Look at the loan servicers, loan amounts, interest rates, and terms for all loans before making a decision.
Contact Info for Most Federal Student Loans
The government assigns your federal student loans to a loan servicer after they are paid out. To find your loan servicer, visit your account dashboard on StudentAid.gov, find the “My Loan Servicers” section, and choose “View loan servicer details.” You can also call the Federal Student Aid Information Center at 800-433-3243.
Loans Not Owned by the Education Department
For federal loans that aren’t held by the Education Department, here’s how to get in touch:
• If you have Federal Family Education Loan Program loans that are not held by the government, contact your servicer for details. Look for the most recent communication from the servicer, or check your billing statements for their contact information.
• If you have a Federal Perkins Loan that is not owned by the Education Department, contact the school where you received the loan for details. Your school may be the servicer for your loan.
• If you have Health Education Assistance Loan Program loans and need to find your loan servicer, look for the most recent emails or communication about these loans, or check your billing statements.
Private Student Loans
Private student loans are not given by the government, but rather by banks, credit unions, and online lenders. You’ll need to find your specific lender or servicer in order to find out your loan information. Your lender may also be your loan servicer, but not necessarily. Check your most recent communication, including emails, from the lender for their contact information. If they are not the servicer for your loan, ask them who is.
How to Find Out Who Services Your Loan
As noted above, you can find the servicer for your federal student loans on your account at StudentAid.gov in the “My Loan Servicers” section. For loans not owned by the Education Department (except Perkins Loans), check recent billing statements or communications about the loans for your servicer’s contact information. If you have Perkins Loans, contact your school for information about your servicer.
For private student loans, contact your lender for details. They may also be the servicer of your loan, and even if they aren’t they can tell you who is.
Can You Refinance Student Loans While Still in School?
Although it’s not common, you may be able to refinance your student loans while still in school with certain lenders. However, doing so may not make the most sense for your situation.
When you refinance student loans, you exchange your current loans with a new loan from a private lender, preferably with a lower rate. This rate is based on such factors as current market rates and your credit profile.
Pros and Cons of Refinancing Before Graduation
Some of the advantages of refinancing your student loans while still in school include potentially getting more favorable loan terms, such as a lower interest rate on your loans if you qualify, which could lower your monthly payments.
Refinancing also allows you to consolidate all your loans into one loan, which can make them easier to manage.
However, there are disadvantages to refinancing while still in school. For one thing, it can be difficult to qualify for refinancing without a job and a steady income. You may need a creditworthy cosigner in order to qualify. Not only that, many lenders require borrowers to have a bachelor’s degree to be eligible for refinancing.
It’s also important to be aware that refinancing federal loans makes them ineligible for federal benefits and programs, such as income-driven payment plans and forgiveness.
In addition, once you refinance, you will need to start making loan payments, which may be challenging while you’re still in school.
Which Loans Can Be Refinanced While Enrolled?
You can refinance any type of student loan while enrolled in school, assuming that the lender allows it. If you’re still in school and want to refinance, a lender will typically want to make sure you have a job or job offer on the table, are in or near your last year of school, and have a solid credit profile. As noted above, you could also consider refinancing your student loans with a cosigner if you do not meet the lender’s requirements on your own.
A couple of important points if you are considering refinancing federal student loans with a private lender:
• Doing so means you will forfeit federal benefits and protections, such as forbearance and forgiveness, among others.
• If you refinance for an extended term, you may have a lower monthly payment but pay more interest over the life of the loan. This may or may not suit your financial needs and goals, so consider your options carefully.
Which Loans Can’t Be Refinanced While Enrolled?
If you find a lender willing to refinance your student loans while still in school, they may not exclude certain types of loan. However, it is generally best not to refinance federal student loans while enrolled. Federal Subsidized Loans, for example, do not start earning interest until after the grace period is over. Since you aren’t paying anything in interest, it doesn’t make sense to refinance and have to start paying interest on your loans immediately.
Federal Loans With Active Deferment or Forgiveness Benefits
If you’re in school at least half-time, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit, and you need to start making payments on your refinanced loans.
Also, if you plan to pursue student loan forgiveness like Public Service Loan Forgiveness after you graduate, refinancing student loans isn’t the best option for you. Refinancing gives you a new private loan with a new private lender, thereby forfeiting your eligibility for forgiveness and other federal benefits and protections.
Is It Worth Refinancing Only Some of Your Loans?
It may be worth refinancing only some of your loans in certain situations. Here are some instances in which you might want to consider this option.
When Partial Refinancing Might Make Sense
The student loans it may make sense to refinance might include:
• Loans that have a variable interest rate (if you’d prefer a fixed rate)
• Loans with a relatively high interest rate, since refinancing may save you money. A student refinance calculator can come in handy when estimating what you might save over the life of the loan.
When you might want to think twice about refinancing:
• If you have federal loans and plan on using an income-driven repayment (IDR) plan, for example, it makes sense not to include those loans in the refinance (see more about IDR payment plans below).
• If you have a low, fixed interest rate currently, you should probably keep those loans as is. The main reason to refinance is to secure a lower interest rate or a lower payment.
| Pros | Cons |
|---|---|
|
• Possibly lower your monthly payment • Possibly lower your interest rate • Shorten or lengthen the loan term • Switch from variable to fixed interest rate, or vice versa • Combine multiple loans into one |
• Lose access to federal benefits and protections • Lose access to remaining grace periods • May be difficult to qualify • May end up paying more in interest if you lengthen the term |
Examples of Refinancing Before Earning a Degree
Some borrowers might want to refinance before earning their bachelor’s degree. Others might choose to wait until they are graduate students.
Case Studies: Undergraduate vs Graduate Borrowers
Undergraduate students may have a challenging time refinancing their student loans without a strong credit profile and a job with a steady income. They might need a cosigner in order to qualify for refinancing.
Graduate students are typically eligible to refinance their undergraduate student loans, assuming they meet the lender’s requirements or use a cosigner. Parents with Parent PLUS Loans are also typically allowed to refinance their loans prior to their child graduating.
Rules will vary by lender, so make sure to do your research and choose a lender that will work with your unique situation.
Alternatives to Refinancing
If refinancing your student loans isn’t the right option for you, there are some alternatives to refinancing you can explore.
Income-Driven Repayment Plans
Income-driven repayment plans for federal student loans base your monthly payments on your discretionary income and family size and extend your loan term to 20 or 25 years. These plans can make your monthly payments more affordable. However, you may pay more interest overall on an IDR plan.
There are currently three IDR plans — the Income-Based Repayment (IBR) Plan, the Pay As You Earn (PAYE) Plan, and the Income-Contingent Repayment (ICR) Plan. On the IBR plan, any remaining balance on your loans is forgiven when your repayment term ends.
Due to the One Big Beautiful Bill, however, changes are coming to IDR plans in July 2027, when most of the plans, except IBR, will no longer accept new enrollees.
Federal Loan Consolidation
Another alternative to refinancing is consolidating student loans. Consolidation combines your federal student loans into one loan with one monthly payment. One of the main differences between consolidation and refinancing is the interest rate on a federal loan consolidation is the weighted average of the rates of the loans you are consolidating, rounded up to the nearest one-eighth of a percentage.
You typically won’t save on interest, but you can lower your monthly payment by extending the loan term. Doing this, however, means you’ll probably pay more in interest over the life of the loan. Consolidating can make your loans easier to manage because you’ll have just one loan payment to make.
Weighing Perks and Interest Rates
Before deciding whether refinancing is right for you, it’s important to consider what you might gain and what you would give up.
Losing Federal Protections vs Lower Monthly Payments
Essentially, you need to consider the cost of losing federal benefits against the perk of potentially securing a lower interest rate through refinancing. Remember,if you refinance your federal student loans with a private lender, those loans will no longer be eligible for federal protections and programs like income-driven repayment plans, federal forbearance, and student loan forgiveness. If you think you might need those programs, refinancing likely doesn’t make sense for you.
But if you can qualify for a lower interest rate, refinancing may be a good fit. Your monthly payments would probably be lower in that case and you also might get a more favorable loan term. Just remember that shortening or elongating your loan term can affect your monthly payment and the total cost over the life of your loan.
For some borrowers, lengthening the term and lowering the monthly payment will be a valuable option, even though it can mean paying more interest over the life of the loan. Only you can decide if this kind of refinancing makes sense for your personal financial situation.
The Takeaway
It’s possible to refinance student loans as soon as you establish a financial foundation or bring a creditworthy cosigner aboard. You can even refinance your student loans while in school, although not all lenders offer this option and it may not make sense for your situation.
It’s also important to understand the implications of refinancing federal student loans with a private lender. If you don’t plan on using federal benefits and protections and you can land a lower interest rate, it might be a move worth considering.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
How soon after taking out a loan can you refinance?
You can refinance a student loan as soon as you meet a lender’s specific eligibility requirements. Many lenders prefer borrowers to have graduated before they refinance and to have a stable job and steady income. However, some lenders do allow students to refinance while they are still in school, though the student may need a creditworthy cosigner in order to qualify.
Can I refinance student loans before graduation?
It’s possible to refinance student loans before graduation, though it can be challenging. While many lenders don’t offer the option to refinance while you’re still in school, there are some that do. Keep in mind that you may need a creditworthy cosigner to qualify for refinancing.
What are the risks of refinancing federal student loans early?
Risks of refinancing federal student loans early include losing access to important federal benefits and programs such as income-driven repayment plans, deferment, and forgiveness. For example, while you’re in school, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit and need to start making payments on your refinanced loans once they are disbursed.
Can I refinance just some of my student loans?
Yes, you can refinance just some of your student loans. With refinancing, you can pick and choose the specific loans you’d like to refinance. For instance, you could choose to refinance only your private student loans, and keep your federal loans to preserve access to federal benefits and protections. You might also choose to refinance only your student loans with high interest rates. It’s completely up to you.
Will refinancing affect my credit score?
Refinancing requires a hard check of your credit, which typically causes a slight dip in your credit score. However, the drop is generally just a few points and it’s temporary. Making on time loan payments may help build your credit again over time.
SoFi Student Loan Refinance
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
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