MoorGood to know: MoorLoans is an independent comparison platform — we don't issue loans directly. Rates, terms and eligibility vary by lender, and a credit inquiry may be part of the application process.
What Is Refinancing?
Student loan refinancing combines one or more existing loans into a single new private loan — ideally at a lower interest rate. It can reduce your monthly payment, your total interest, or both.
How It Works
A private lender pays off your old loans and issues you a new one with a new rate and term. You then make one monthly payment to the new lender.
A Key Warning on Federal Loans
Refinancing federal student loans into a private loan means permanently giving up federal benefits — income-driven repayment, forgiveness programs, and deferment options. Weigh this carefully before refinancing federal debt.
When to Refinance
- Your credit and income have improved since you first borrowed
- Current rates are lower than your existing rate
- You have private loans (fewer protections to lose)
- You want to combine multiple payments into one
Requirements
- Good-to-excellent credit (or a cosigner)
- Steady income and a manageable debt load
- Completed degree (required by some lenders)
- Loans in good standing
Fixed vs Variable
Fixed rates stay constant; variable rates may start lower but can rise. Pick fixed for certainty, variable only if you'll pay off the loan quickly.
Pros & Cons
| Pros | Cons |
|---|---|
| Potentially lower rate | Lose federal protections |
| One simple payment | Best rates need strong credit |
| Choose a new term | Extending term adds interest |
Final Thoughts
Refinancing can save real money if your credit has improved and rates have dropped — but never refinance federal loans without understanding what you give up. Compare several lenders. MoorLoans helps you compare — we don't lend directly.