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Is your bedroom cluttered, depressing, and lacking warmth and coziness? If so, perhaps it’s time for a bedroom remodel, an awakening of a room that can range from paint to structural changes.

If you’re a homeowner looking to spice up or calm down your bedroom, know that bedroom remodels can have a return on investment of 20% to 45%, according to Angi, the home improvement site, as of mid-2025.

The steps you can take to renovate rooms aren’t too onerous and can often be done without the help of a contractor or other professional. Let’s take a look at the cost to remodel a bedroom, bedroom remodel ideas, and how to pay for a bedroom remodel.

How Much Does It Cost to Remodel a Bedroom?

The typical bedroom costs $20,000 as of mid-2025, according to Angi. However, the amount of money you put into a bedroom remodel depends on what you’re trying to achieve. Do you simply want to change up your décor, including your bed, bedside tables, and desk? Or do you want to paint the room a different color and add some window treatments?

You may also be looking at more extensive changes, such as ripping up carpeting and putting in new flooring, installing new windows, or building custom cabinetry in your closet.

The good news is that most bedroom remodels are less costly than renovations that entail taking down walls, rewiring electrical systems, and installing pipes, though some bedroom remodels may call for these types of tasks.

With a bedroom remodel, you’re less likely to be doing major construction that requires hiring licensed professionals like a carpenter, plumber, or general contractor. And even if you have to rely on the services of a vendor, there are likely other aspects of the project you can tackle yourself.

Recommended: The Top Home Improvements to Increase Your Home’s Value

Simple Bedroom Remodel Ideas

Decluttering is a tried-and-true way to visually open up a room. That means organizing books and magazines, laundry or piles of clothes, and furniture. Here are some other ways.

Painting

What color will turn your current space into your dream bedroom? Some of the major brands and independent companies offer online color consultations. And then, if you feel up to the task, you can avoid hiring a painter by painting your walls yourself.

You’ll want to take stock of the current trim and match a color to it. You’ll also want to consider how the room changes color depending on the time of day. Sometimes a room that looks white in the evening can take on a yellowish tint during the light of day.

You’ll want to make sure you have all the equipment you need to get the work done efficiently and well. This includes paintbrushes, a paint roller and pan, rags, sandpaper, and drop cloths.

The great thing about paint is, if you feel you’ve done a poor job in spots, you can always paint over it.

Flooring

What you do with your floors is going to depend largely on personal taste. Your choices include wall-to-wall carpeting, wood or wood-engineered flooring with or without area rugs, and tile or ceramic flooring, which works best in humid climates.

You’ll want to think about how your flooring will complement the rest of the room, including furniture. You’ll also want to take your comfort into consideration. Carpeting, for example, muffles sound, while wood flooring does not.

Some people don’t like walking barefoot on anything besides carpet, for example, while others prefer the look of bare floors.

Cost may also come into play here as wood flooring is generally more expensive than carpeting, $6 to $25 per square foot. Carpeting typically runs $3.50 to $11 a square foot, HomeAdvisor notes.

Furnishings

While some homeowners may want to keep the bedroom furniture they’re currently using, others choose to sell or donate what they have and start over.

If you’re in the latter group, you’ll want to consider the paint and flooring you’ve chosen when looking for a new bed and headboard, bedside tables, desk, and dresser.

Looking online for bedroom remodel ideas can be a low-cost way to design your bedroom décor, with many blogs and websites linking to online retailers for easy purchase.

Social media sites like Houzz and Pinterest have scores of photos and boards delineated by room, color, and style to help you brainstorm.

If your budget allows, this might be an area to bring in the help of an interior designer. An interior designer may be able to see things you don’t, such as whether you need a large desk for working from home, a bench at the end of the bed for sitting, or a changing table if you plan to grow your family in the near future.

On a tight budget? Many people find cheap furniture online, at flea markets, and from freecycle resources. Refinishing it, painting it, or otherwise freshening it up can be a fun, affordable, hands-on way to update a bedroom.

More Extensive, and Expensive, Bedroom Remodels

While bedroom remodels are typically less wide-ranging than those of a kitchen or bathroom remodel, you may opt for larger changes that can drive up your cost.

These include altering the function and structural design of a room, which may require the use of a professional.

Structural Changes

If you own a home or are looking to buy a property, the lack of an ensuite bathroom might be a big deal. Maybe you’d like to be able to pad into the bathroom in the middle of the night without tiptoeing through the hallway.

Depending on the layout of the bedroom and the rooms near it, this may necessitate turning a closet into a bathroom or building a door through a wall that conjoins your bedroom with that hallway bathroom.

Either way, you’re probably looking at hiring a plumber, carpenter, electrician, and contractor. While this type of remodeling affords you more options than sticking with your current footprint, it comes with added costs to be aware of.

Lighting and Fans

Adding recessed lights requires the work of a licensed electrician, who may have to work around obstacles like heating ducts, and will charge for both installing and wiring each light.

Ceiling fans, while pretty and useful, will likely also require hiring a professional installer to burrow through your ceiling, connect to electricity, and complete the necessary patchwork afterward.

Recommended: Guide to Buying, Selling, and Updating Your Home

Paying for It

Creating a budget and payment plan is key, no matter the size of your bedroom remodel. Some changes are so small that homeowners can pay upfront.

Those with more extensive remodels might use a home equity loan or home improvement loan. These allow you to tap into the value of your home and use the funds to finance your bedroom remodel. They typically have comparatively low interest rates, since they are secured loans with your property as collateral, but obtaining them can take a little while.

Another option would be a home improvement loan. These are a kind of personal loan, which allows you to obtain a lump sum of cash and then pay it back over time with interest. This is usually a fixed-rate personal loan, and the term extends from one to seven years in most cases.

Recommended: Personal Loan Calculator

The Takeaway

A bedroom remodel currently costs $20,000 on average. This price reflects more than just a coat of paint and a new lighting fixture, so it is possible to do the job on a tighter budget and transform your space into a dream bedroom. It could also improve the value of your home. To pay for a bedroom renovation, you might use savings, consider tapping your home equity, or take out a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much is the typical bedroom remodel?

The average bedroom remodel costs about $20,000 as of 2025, but it’s possible to spend much less or more, depending on the scope of your project.

How long does it take to renovate a bedroom?

Depending on the extent of the work you are doing, it could take a weekend, several weeks, or even months, if structural changes are part of the plan. It’s a highly individual process.

How can you finance a bedroom remodel?

To finance a bedroom remodel, you might dip into your savings, tap home equity, or take out a personal loan. Credit cards should typically be your last resort due to their high interest rates.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-086

Using a surrogate, also known as a gestational carrier, can cost $55,000 to $200,000 total or possibly more. This process involves an arrangement in which a woman carries and gives birth to a child for another couple or individual. Surrogacy can allow would-be parents an opportunity to have a baby with whom they have a biological link. But gestational carrying can also be complicated, with complex laws and medical procedures that can make the process expensive.

The cost of using a surrogate can vary, depending on where you live, whether you need an egg donor, and how many rounds of IVF your surrogate will go through before she conceives. Read on to learn more about potential fees involved in using a surrogate, as well as some ways to make the process more affordable.

Why Is Surrogacy so Expensive?

The lump sum of surrogacy can seem overwhelming. But it’s important to keep in mind that the estimated overall cost is based on averages.

Because surrogacy is unique for all families, your expenses may differ. But knowing the various elements of surrogacy can help you see how each cost plays into the overall price. Here are some typical surrogacy costs that aspiring parents should anticipate.


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Agency Fee

Because fertility clinics do not find surrogates, would-be parents typically need to find a carrier through a personal connection or an agency. Surrogacy agencies, which have a network of surrogates who have met certain requirements, charge fees that can run $25,000-plus.

The fee covers all of the services provided by the agency, including background checks, screenings, support and education, advertising, marketing, and more.

Agency fees should remain fixed, regardless of how long it takes to complete the surrogacy process.

Recommended: Exploring IVF Financing Options

Surrogate Fee

Working with a gestational carrier can be expensive, typically running somewhere between $40,000 and $60,000, or more for an experienced surrogate who has carried successfully in the past. This fee is paid to the surrogate as compensation for undergoing tests and fertility treatments, carrying and delivering the child, taking on the medical risks involved, and putting themselves through the physical and emotional challenges that surrogacy and pregnancy can involve.

Fertility Clinic Fee

You will also need to work with a fertility clinic to produce embryos. In many cases, couples have already done this before pursuing surrogacy. This can range from $20,000 to $60,000.

Recommended: How Much Does IVF Cost?

Pregnancy Costs

The cost of carrying and delivering a baby can vary in the U.S., depending on location, type of birth, and whether there are any complications, but tends to average around $14,000 and up. The surrogate’s insurance may or may not cover any of this cost. If the surrogate doesn’t have health insurance, the would-be parents may need to purchase a short-term or maternity-only policy for them.

Legal Fees

Surrogacy can involve several psychological, ethical, and legal complexities, and typically requires legal contracts that outline each parties’ responsibilities and compensation.

The intended parents and surrogate typically each need an attorney to negotiate and draft this contract, as well as complete other necessary services. The Intended parents typically pay for everyone’s legal expenses, which can cost from $7,000 to $12,000.

Other Potential Costs

Other expenses that can come up include travel, pregnancy clothing, lost wages, payment for breast milk, and counseling fees.

Recommended: How Much Does it Cost to Raise a Child to 18?

Is Surrogacy Covered by Insurance?

Surrogacy is not typically covered by health insurance, but the situation isn’t always clear-cut. Some health insurance plans include language that clearly specifies the plan does not cover costs for a woman for surrogacy, while a few plans state that they do provide coverage.

Many insurance plans, however, don’t make it entirely clear whether they do or don’t cover surrogacy. Surrogacy agencies, however, can often help intended parents evaluate the surrogate’s health insurance plan to determine whether or not the pregnancy will be covered.

In some cases, the would-be parents will need to purchase outside insurance for the surrogate from a comprehensive surrogacy insurance agency, which can run $10,000 or more and may have deductibles in the range of $15,000. In other words, even with coverage, there may be considerable out-of-pocket costs.

💡 Quick Tip: With lower fixed interest rates on loans of $5K to $100K, a SoFi personal loan for credit card debt can substantially decrease your monthly bills.

What To Know About Surrogacy Fees

Surrogacy fees are a large portion of the overall surrogacy price tag. But there are ways to possibly minimize these fees.

One common route is using what’s called a “compassionate” surrogate. This is someone — perhaps a friend or relative — who does not want a fee for surrogacy. While the would-be parents will be responsible for expenses, eliminating a carrying fee can make surrogacy much more affordable.

Another option is to search for a surrogate independently instead of going through an agency. This can minimize fees, but can also potentially be complicated because of the complexities involved in surrogacy.

Some families choose a surrogate who lives outside the United States as a way to save on potential costs. International surrogacy may be facilitated by an agency in the home country of the potential surrogate. This too, however, may come with risks including legal risks and travel complications.

Regardless of whether a family uses an agency, a connection, or pursues a surrogate through an independent channel, they will still likely need to use a reproductive lawyer to craft a legal agreement, as well as psychological counseling for all parties to make sure everyone has a place to explore the complex emotions that can come from surrogacy.

How to Pay for Surrogacy

Many people don’t have an extra six figures sitting around in a bank account that they can tap to pay for using a surrogate. But there are some ways that hopeful parents can find funds. Here are some options you may want to consider.

Employee benefits and health insurance. It’s not very common for companies to offer a surrogacy benefit, but it can’t hurt to inquire. There are some companies that offer a maximum family-planning benefit that could be used for processes such as surrogacy. It can also be worthwhile to check your own health insurance benefits. While it may not cover the surrogate’s pregnancy, it may cover procedures would-be parents need to undergo.

Saving up in advance. If you are planning surrogacy for some time in the future, you may want to start putting cash away every month into a savings account, ideally with an above-average interest rate, set up specifically for surrogacy. You can also automate savings by setting up a recurring monthly deposit into this account so it happens no matter what.

Considering financial resources. Some aspiring parents may want to reach out to their family for financial help, or even crowd-source funds through their social media networks. Others may tap into equity, such as a home equity line of credit (HELOC) or borrowing from their 401(k). Of course, it can be a good idea to explore the pros and cons of these types of loans, including a timeline to pay them back.

Taking out a personal loan. Taking out a personal loan, sometimes referred to as a family planning loan, can be a good option for some would-be parents. Unlike a credit card, a fixed-rate personal loan gives transparency over interest rate and exactly how much money you’ll need to pay back for the life of the loan.

Personal loans can also come with significantly lower interest rates than credit cards. Prior to applying for a loan, it can be a good idea to understand any fees and penalties. Surrogacy agencies and fertility centers also may have loans available.

Recommended: Guide to Unsecured Personal Loans

Applying for a grant. There are some national, regional, and local grants available for some families pursuing surrogacy. Qualifying for a grant may depend on income, location, and personal situation.

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The Takeaway

Surrogacy is a process that can help would-be parents have a baby, but it typically comes with considerable costs. While specifics can vary widely based on your location and the type of surrogacy you choose, the total can run around from $55,000 into the six figures.

Because this family-building option is pricey, aspiring parents may want to try to save up in advance, tap certain financial resources, explore grants, find ways to trim costs, or take out a personal loan, which often comes with a lower interest rate than credit cards.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Do surrogates get paid if they miscarry?

Yes, typically they do get paid if they miscarry, but often a lower amount than if they were to carry to term and deliver the baby. A lawyer and surrogacy agency can help you work out these “what-if” scenarios prior to embarking on surrogacy.

Which is cheaper, IVF or surrogacy?

Typically, IVF is cheaper than surrogacy, costing $50,000 or less per cycle, while surrogacy can run into the six figures for all the expenses involved.

What are the cons of surrogacy?

The downsides of surrogacy can include emotional and physical strain on the surrogate, the high price tag associated with the process, and the ethical considerations that may arise.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL0623066

Braces can help correct dental alignment issues (like crowded, gapped, or crooked teeth) and give your child a beautiful smile. But if an orthodontist visit is in your future, prepare for sticker shock: Depending on the type of appliances they recommend and severity of the dental problem, kids’ braces can run well into the thousands of dollars. If you haven’t been saving up for this developmental milestone, you may be wondering: How do I pay for braces?

Fortunately, you do have some options, including payment plans, flexible spending accounts, and loans. Here’s a look at ways to make covering the high cost of braces more manageable.

What’s the Average Cost of Braces?

The cost of getting braces varies depending on the area, dentist, and type of braces, but you can expect to shell out anywhere from $3,000 to $10,000.

Here is a look at typical costs for different types of orthodontic treatment:

•   Metal braces (traditional braces): $3,000 – $7,000

•   Ceramic braces (tooth-colored braces): $3,500 – $8,000

•   Lingual braces (braces that go on the back surfaces of your teeth): $5,000 – $13,000

•   Invisible braces (custom-made trays that straighten your teeth over time, such as Invisalign): $3,500 – $8,000

If you have dental insurance, it might partially cover a child’s orthodontic treatment. Policies vary but many dental plans will cover 50% of the cost of braces with a $1,500 or $2,500 lifetime maximum per child. While this still leaves you on the hook for the remainder, it can make a significant dent in your total out-of-pocket expenses.

Also keep in mind that many practices offer a discount (often 5%) on your braces cost if you choose to pay for the treatment up front.

Recommended: 8 Smart Tips To Finance Expensive Dental Work

Smart Options to Pay for Braces

Here’s a look at some ways to make orthodontic treatment costs more manageable.

1. Asking Your Orthodontic Office About Payment Plans

Many orthodontic offices offer flexible payment plans that allow you to stretch the cost of braces over a specified period. One common scenario is interest-free financing that spreads payments across two years. This can make the payments (typically debited monthly from your checking or saving account) more manageable.

For example, an interest-free, 24-month payment plan, with no required down payment, would make a $5,000 orthodontic treatment cost about $209 per month, assuming you don’t have any insurance coverage. If your dental plan covers some of your costs, your monthly, of course, will be less.

Payment policies will vary from office to office, so it’s a good idea to ask about payment plans, including any interest or financing charges associated with the plan, as well as the duration of the payment period. By understanding the terms up front, you can make an informed decision about which practice you want to use and how you will pay for the braces.

Recommended: Guide to Paying for Dental Care With a Credit Card

2. Using a Flexible Spending Account or a Health Savings Account

Flexible spending accounts (FSAs) and health saving accounts (HSAs) are offered as a part of healthcare plans by some employers. Both allow you to set aside pretax dollars to be used toward eligible expenses, which often include orthodontic treatment.

With an FSA, you determine how much you want your employer to set aside for the year (up to the FSA limit). You then need to use the funds for qualified medical expenses before the end of the year (though you may be able to roll over a certain amount to the following year.

To save to an HSA, you must enroll in a high-deductible health insurance plan, or HDHP (as defined by the government). Each year, you decide how much to contribute to your HSA, though you can’t exceed government-mandated maximums. If you have an HSA through your workplace, you can often set up automatic contributions directly from your paycheck. Typically, you get a debit card or checks linked to your HSA balance, and you can use the funds on eligible medical expenses.

Unlike an FSA, your HSA balance rolls over from year to year, so you never have to worry about losing your savings.

3. Taking out a Loan

If the above options aren’t available or sufficient to cover the cost of braces, you may want to consider getting a personal loan. These loans, available through banks, online lenders, and credit unions, are usually unsecured (meaning you don’t need to put up any collateral) and can be used for almost any type of expense, including your kid’s braces. In fact, healthcare costs are a common reason why people apply for a personal loan.

Financing braces this way, of course, comes with personal loan interest, which will add to the total cost of the treatment. However, personal loans generally have lower interest rates than credit cards. They also provide you with a lump sum up front, which might help you get a discount for paying in full (if your orthodontist offers that). Plus, you’ll get a set monthly payment you can budget for.

When getting a personal loan to pay for braces, it’s important to shop around and look for a loan that offers favorable rates and terms and fits within your budget.

Recommended: How to Apply for a Personal Loan

The Takeaway

The cost of a child’s braces, which can run more than $10,000 in some cases, can seem daunting. Fortunately, there are several options available to help you manage the expense. Whether you choose a payment plan offered by your orthodontist, utilize a flexible spending account or health savings account, or opt for a loan, careful planning and research can help you to find a solution that works for your family’s financial situation.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How to get braces if I can’t afford them?

If you need braces for yourself or a child but can’t afford them, see if you can find an orthodontist with an affordable payment plan, look into dental insurance or Medicaid policies, research if funding is available through charitable organizations, or consider a personal loan.

Can you make payments on braces?

Yes, it is common for orthodontists to offer payment plans or work with financing companies to help patients pay for braces over time. Or you might consider a personal loan, which you pay off over a typical term of a couple to seven years.

How much do braces cost for a child?

Prices can vary for children’s braces depending on the patient’s specific case, the orthodontist’s fee scale, and where you live. Typically, expect prices in the $3,500 to $8,000 range as of mid-2025.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-095

If refinancing your student loans could save you money or make your monthly loan payments more manageable, it may be time to consider a refinance. When you refinance student loans, you replace your existing loans with a new loan from a private lender. Ideally, the new loan would have better rates and terms, if you can qualify for them.

Refinancing isn’t always the right choice, however. There are times when it may not be in your favor. If you’re wondering, should I refinance my student loans?, here’s what you need to know.

When to Refinance Student Loans

There are several situations in which refinancing student loans makes sense, including these instances:

You Have Private Student Loans With High Interest Rates

If you took out private student loans to help cover the cost of school and the interest you’re paying is high, refinancing may help you get a lower rate. This is especially true at times when interest rates are lower overall and/or when your financial history is solid.

If you qualify for an interest rate that’s even just a few points lower than your current rate, you could potentially save thousands of dollars. This could be one of the times when to refinance student loans. A student loan refinancing calculator can help you crunch the numbers to see what your specific savings might be.

Or perhaps you need to lower your monthly payment to help save money. One way to do this is to refinance your student loans with a longer loan term. This will reduce your payments, however, you will end up paying more in interest over the life of the loan. You could also lower your payment by getting a lower student loan refinancing rate, if possible, and keeping the term the same.

Your Credit Score is Good

Your eligibility to refinance student loans depends in part on your credit score. If you’ve spent time building your credit and you have a stable job, you may qualify for lower student loan refinancing rates.

You can also consider applying for a student loan refinance with a cosigner. If your cosigner has a stronger credit profile than you, you may be able to land a better rate on your refinance.

You can usually refinance student loans right after graduating, and as often as you want after that. Most lenders charge no fees to refinance.

You Have Multiple Loans

If you have several different student loans, refinancing allows you to combine them all into one loan. Basically, when you refinance, you take out a new loan, and that loan is used to pay off your existing loans. You then make payments on the new loan. It streamlines the repayment process since you have just one loan payment to make each month.

You can refinance both federal and private student loans, or a combination of both types, but be aware that refinancing federal loans with a private lender will forfeit your eligibility for federal benefits and protections.

You Qualify for Refinancing

Whether you qualify to refinance student loans depends in part on your credit score, as noted, along with your financial history, employment, and debt-to-income ratio (your monthly income vs. expenses). If you qualify, and ideally, if you can get a lower interest rate, you can save money by refinancing.

You Want to Remove a Cosigner

If you have a cosigner on your student loans and you’d like to remove them, refinancing is one way to do that — as long as you have the credit and financial history to qualify to refinance on your own. To remove the cosigner, take out the refinance loan in your own name only. The cosigner will not have any responsibility for the new loan.

You Want to Switch to Fixed Interest

If you have student loans with variable rates, and you’re concerned that interest rates will rise, you may want to consider refinancing to lock in a fixed rate on the new loan.

You Are Willing to Give Up Federal Benefits

Borrowers with federal student loans need to understand that refinancing these loans into a private student loan will eliminate the ability to participate in income-driven repayment plans, Public Service Loan Forgiveness, and federal deferment and forbearance.

If you are using these benefits or you plan to, it’s not recommended to refinance your student loans. Instead, you could consider student loan consolidation vs. refinancing. A federal student loan consolidation combines multiple loans into one, with the interest rate being the weighted average of the loans you are consolidating rounded up to the nearest one-eighth of a percent.

IMPORTANT: The projections or other information generated by this quiz regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of offers.

When Not to Refinance Student Loans

Just like there are times when refinancing may be a wise choice, there are also times when it’s best not to refinance your student loans. You’ll generally want to rule out refinancing in the following situations.

You Want to Use a Federal Loan Forgiveness Program

If you have federal student loans and you’re planning on taking advantage of federal loan forgiveness programs that cancel some of your debt after you meet certain qualifications, refinancing is not the right option for you. Refinancing federal loans into a new private loan makes them ineligible for federal benefits and programs.

You Work in Public Service or Education

Borrowers working in a public service job or as a teacher or educator should think twice about refinancing. If you keep your federal student loans, you may be able to qualify for Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. With PSLF, eligible borrowers who work in public service for a qualifying nonprofit organization or government agency may qualify for forgiveness from their remaining loan balance after making 120 qualifying payments.

With Teacher Loan Forgiveness, if you teach for five consecutive years in a low-income school or educational service agency and meet certain other qualifications, you may be eligible for forgiveness for up to $17,500 on certain federal student loans, including Direct Subsidized and Unsubsidized Loans.

Refinancing federal student loans means you lose access to these forgiveness programs.

You Need Flexible Repayment Options

If you need a payment plan that could make it easier to repay your federal student loans, income-driven repayment (IDR) is an option to consider. IDR plans base your payments on your discretionary income and family size. The repayment period ranges from 20 to 25 years on these plans.

There are three IDR plans borrowers can currently enroll in via an online application: the income- based repayment (IBR) plan, the income-contingent repayment (ICR) plan, and the Pay As You Earn (PAYE) repayment plan. On one of these plans, the IBR plan, the remainder of your student loan debt may be forgiven at the end of the repayment term.

If you refinance student loans, you will not be eligible for IDR plans.

You Have Poor Credit

Borrowers need good credit to qualify for refinancing, and they need good or excellent credit to be eligible for lower interest rates. If your credit is poor, it may be wise to hold off on refinancing and work on building your credit instead. You could always refinance later, when your financial situation improves and your credit is stronger.

The Takeaway

Knowing when and when not to refinance student loans is important. Refinancing your loans can make sense if it saves you money or helps you get more favorable loan terms. But if your credit isn’t strong enough to get a lower interest rate, or you have federal student loans and want to pursue federal programs like loan forgiveness, refinancing isn’t recommended.

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

Can refinancing student loans reduce the cost of your total debt?

Yes, refinancing your student loans may reduce the total cost of your debt by reducing the amount of interest you pay over the life of the loan. You can do this by getting a lower interest rate (and keeping your loan term the same) and/or shortening your loan term.

What credit score do you need to refinance student loans?

The minimum credit score needed to refinance student loans varies from lender to lender, but according to FICO, a “good” credit score is 670 or higher. To get the best student loan refinance rates, you’ll want to have a good credit score and low debt-to-income ratio. If you don’t meet those requirements, you may want to consider refinancing with a cosigner or waiting until you build your credit.

How do I qualify for student loan refinancing?

To qualify for student loan refinancing, you need strong credit, a low debt-to-income ratio, and stable employment and a steady income. Some lenders may also require you to have your degree in order to refinance. If you don’t meet the refinancing qualifications, you could add a creditworthy cosigner to your loan application or wait to refinance when your financial situation improves.

What are the benefits of refinancing student loans?

The benefits of refinancing student loans include saving money if you can qualify for a lower interest rate, lower monthly payments if you extend your loan term, switching from a variable rate loan to a loan with a fixed rate, and removing a cosigner from your loan if that is something you are looking to do. Just be aware that refinancing federal student loans makes them ineligible for federal programs and protections.

Can student loans be forgiven if you refinance?

No, student loans cannot be forgiven if you refinance. Refinancing federal loans into private loans makes them ineligible for forgiveness. If you have federal student loans and you would like to pursue federal loan forgiveness, refinancing is not the recommended option for you.

SoFi Student Loan Refinance
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 Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.