Estimate how much you can save with our student loan refinancing calculator. First, enter your current loan information. Then, estimate the rate and terms of your new loan. Want to compare real rates? Compare and refinance your student loans with Credible.
STEP 1: Enter current loan information
? Enter the remaining amount of the loans you’d like to refinance $
? Enter the average annual interest rate of the loans you’d like to refinance %
? Enter the monthly amount you currently pay on your loans (or enter remaining term) $
? Enter the amount of time left to repay your loan (or enter monthly payment) mo.
STEP 2: Compare with a new Credible Loan
? Credible cuts interest rates by 1.7% on average – this could be your new rate. If you already know your new loan interest rate, enter it here. %
? Enter the monthly amount to pay on your new loan (or enter new loan term) $
? Enter the amount of time you have to repay your loan (or enter monthly payment) mo.
Lifetime Savings Increased Lifetime Cost
Monthly Savings Increased Monthly Cost
Estimated Payoff Date
Ready to start saving?
Credible simplifies refinancing by letting you compare rates from top lenders in minutes.
Frequently Asked Questions about Student Loan Refinancing
How do I calculate weighted average interest rate?
When you consolidate your federal loans into a Federal Direct Consolidation loan, the interest rate on your consolidated loan is calculated as a weighted average of all the interest rates on your previous loans.
Unlike simply calculating an average of all the interest rates, the weighted average also takes into account the principal balance of each loan.
Let’s see how it works:
Loan 1: $10,000, 3.00%
Loan 2: $50,000, 5.00%
- Get the loan weight of each of your loans by multiplying the balance by the interest rate.
Loan 1: $10,000 x 3.00% = 300
Loan 2: $50,000 x 5.00% = 2,500
- Add these to get the total loan weight = 2,800
- Then add all the loan balances to get the total loan balance = $60,000
- Divide the total loan weight by the total loan balance to get the weighted average interest rate = 0.0466 (or 4.66%)
*The average weighted interest rate on a Federal Direct Consolidation Loan is always rounded up to the nearest 1/8 percent)
For more information on interest rates, find out what you need to know about choosing fixed or variable interest rate student loans.
Should I consolidate my student loans?
If you’re having a hard time making your monthly student loan payments, consolidating your federal loans into a Federal Direct Consolidation Loan could be a good option for you.
When you consolidate multiple loans into a single loan, you have the option to choose a new repayment term. Opting for a longer repayment term will lower your monthly payments since you’ll have more time to pay off the loan.
Just remember that consolidating your loans doesn’t lower your interest rate — your new interest rate will be a weighted average of all your previous interest rates. If you’re more interested in lowering your interest rate, you can learn more about refinancing your loans with a private lender here.
Check out the best student loan consolidation and refinancing companies and read our student loan refinancing lender reviews for more information.
What are income driven repayment plans?
The government offers a number of income-driven repayment plans to help borrowers with federal student loans manage their payments.
Income-driven plans set your minimum monthly payment as a percentage of your income, usually between 10 and 15 percent, depending on the specific plan.
Income-driven repayment plans can help keep your monthly payments manageable and may be a path to loan forgiveness for some borrowers.
But remember, borrowers must pay interest on the amount forgiven through income-driven repayment plans.
Further, not everyone will qualify for loan forgiveness, and stretching out payments beyond the standard 10 years to up to 20 or 25 years in an IDR plan can add thousands of dollars in additional interest to the amount you owe.
To learn more about the different kinds of income-driven repayment plans and how they may be able to help you, go here.