The short answer: Yes. You can refinance private student loans at any time, and they are often the easiest loans to refinance because you don’t give up federal benefits. Refinancing can lower your rate, switch you from variable to fixed, or release a parent cosigner. It pays off most when your credit or income has improved since you first borrowed.
If you took out private student loans in college, you probably did it at 18 or 19, with little credit history and a parent cosigning. You had to take the rate you were offered.
You are not 19 anymore. You likely have a paycheck, a few years of on-time payments, and a stronger credit profile. That means you may be able to shop for a better deal on the same debt.
Yes, private loans can be refinanced (and it’s simpler than federal)
Refinancing means a new lender pays off your existing loans and gives you a new loan with a new rate and term. You can refinance private loans, federal loans, or both. But the decision is very different for each.
With federal loans, refinancing means giving up protections like income-driven repayment and forgiveness, so it deserves careful thought. We break that down in what you give up when refinancing federal loans.
With private loans, there is much less to lose. Private loans never had access to federal repayment plans or forgiveness to begin with. You are mostly trading one private lender’s terms for another’s. That is why many borrowers with both types refinance their private loans first and leave the federal ones alone.
Four reasons to refinance private student loans
1. A lower interest rate. Rates on student loans are priced on your credit, income and debt. If those have improved since school, lenders may offer you less than you pay today. In late October 2026, average 10-year refinance rates were about 6.4% for borrowers with credit scores of 720 to 779 and 5.7% for scores of 780 or higher, according to Credible. If your current loans are well above that, it’s worth checking.
2. Releasing your cosigner. About 9 in 10 private student loan borrowers apply with a cosigner. Many lenders offer cosigner release, but the requirements can be strict and approval is never guaranteed. Refinancing in your own name pays off the old loan completely, which removes your parent or cosigner from it in one step. If that’s your main goal, see our guide to refinancing with or without a cosigner, and for parents, what cosigning really means.
3. Trading a variable rate for a fixed one. Many private student loans carry variable rates that rise when benchmark rates rise. After the Fed raised rates in September and with another hike widely expected in December, locking in a predictable payment can be appealing. Our posts on how the Fed affects refinance rates and fixed vs. variable rates walk through the trade-off.
4. One simpler payment. If you have several private loans with different servicers and due dates, refinancing can roll them into a single loan with one payment.
What the savings can look like
Here is a simple example on a $35,000 private loan balance with 10 years left:
| Rate | Monthly payment | Total interest |
|---|---|---|
| 7.0% (current) | $406 | $13,766 |
| 5.5% (refinanced, hypothetical) | $380 | $10,581 |
Rates are illustrative only. Your rate depends on your credit, income and the lender.
That is about $26 a month and more than $3,000 over the life of the loan, money that could go toward a travel fund, an emergency cushion or a future down payment. For more scenarios at different balances, see how much you could save by refinancing.
See what rate you could get on your private loans
Checking your rate on Admire uses a soft credit check, so it won’t affect your credit score. Compare offers from multiple lenders side by side.
When refinancing private loans may not help
Refinancing isn’t always the right move. It may not be worth it if:
- Your current rate is already low and fixed. If you locked in a great rate, a new loan may not beat it.
- You would still need your cosigner. If your income or credit can’t qualify on its own yet, you may need a cosigner on the new loan too. That’s fine, but it won’t free your parent.
- You’d stretch the term just to lower the payment. A longer term can cut your monthly bill but raise the total interest you pay. Look at total cost, not just the payment.
- Your current lender has hardship options you rely on. Some private lenders offer forbearance or unemployment protection. Compare these before you switch.
How to refinance private student loans
- Gather your loan details: balances, current rates and your payoff amounts.
- Check your rate with a soft credit pull. It won’t affect your credit score, and you can see if you meet typical refinance requirements.
- Compare offers side by side, looking at APR, term and total cost. Here’s how to compare refinancing offers.
- Apply and keep paying your old loans until the new lender confirms the payoff.
Refinancing isn’t one-and-done
If your credit keeps improving or rates fall later, you can refinance again. And if you’re weighing federal consolidation instead, here is how consolidation and refinancing differ.
The bottom line
Private student loans are some of the best candidates for refinancing. You aren’t giving up federal benefits, there’s no penalty for paying off the old loan, and a stronger financial profile than you had in college may earn you a better rate or let you release a cosigner. You can compare refinance offers on Admire or see today’s refinance rate ranges.
Frequently asked questions
Can you refinance private student loans?
Yes. Private student loans can be refinanced with a new private lender at any time. A new lender pays off your existing loans and gives you a new loan, ideally with a lower rate, a better term or without a cosigner.
Is it better to refinance private or federal student loans?
Private loans are usually the safer place to start. Refinancing federal loans means giving up income-driven repayment, forgiveness and federal forbearance. Private loans don’t have those benefits, so you give up much less by refinancing them.
Can I refinance private student loans to remove a cosigner?
Yes. If you qualify on your own, refinancing in your name pays off the original loan and releases your cosigner from it completely. If you can’t qualify alone yet, you may need a cosigner on the new loan.
Is there a penalty for paying off a private student loan early?
No. Federal law prohibits private student lenders from charging prepayment penalties, so refinancing out of a private loan won’t trigger a fee for early payoff.
Does refinancing private student loans hurt your credit?
Checking rates with a soft credit pull doesn’t affect your score. Submitting a full application usually triggers a hard inquiry, which may lower your score by a few points temporarily. On-time payments on the new loan help rebuild it.
Admire is not a lender and does not make credit decisions. All rates and terms are determined by participating lenders and depend on your individual financial situation. Not all consumers will qualify for advertised rates and terms. See our full disclaimers.
