How to compare student loan refinance offers

01

Start both estimates from the same balance.

Use a recent statement or account view to note the current balance and annual interest rate. If your servicer gives you a payoff amount that differs from the displayed balance, keep that figure with your notes and ask the lender which amount its written offer will pay off. The calculator uses one starting balance for both paths and does not model a separate payoff quote.

If you enter a current payment, the estimator projects how many months it would take to pay the balance under a steady rate and payment. Or choose the remaining term and it estimates the current monthly payment. Use the same starting balance in either path so the comparison stays like-for-like.

02

Compare the monthly amount and the full amount paid.

Put the estimated monthly payments next to each other, then compare all scheduled payments through payoff. The current-loan total is its remaining payments, including the final smaller payment if there is one. The refinance total is its estimated payments through the new term plus the fee entered once. These totals include principal and interest; they are not an interest-only comparison.

Illustration only: under these hypothetical inputs, the new payment is about $107.21 lower each month, while estimated total cost is about $3,852.37 higher. The longer term spreads repayment over 15 years instead of an estimated 110 months. This is not a lender rate, quote, or expected borrower outcome; actual offers and payment schedules vary.

This is the trade-off to watch: a smaller payment can come from taking longer to repay, which can mean more interest and a higher total cost. A lower rate does not guarantee a lower total when the new term is longer or fees apply. The CFPB also notes that extending the term can reduce payments while increasing total loan cost.

The CFPB’s guidance on refinancing and consolidation explains why APR, term length, and variable-rate risk can change the cost picture. Its page was last reviewed December 3, 2024; check current written terms before relying on any estimate.

03

Read the offer line by line.

Before accepting any private refinance, compare the final written offer and repayment documents with your notes. A calculator result, advertised rate, prequalification, or preliminary quote is an estimate; it is not the lender’s final offer or a promise that you will qualify for those terms.

1. APR: Check the APR beside the interest rate. Ask which costs are reflected in it and whether the quoted payment assumes a discount. Compare APRs and terms together, not the headline rate alone. The CFPB warns that a lower monthly payment can coexist with a higher rate when repayment is stretched over more years.
2. Fixed or variable: Confirm whether the rate can change. For a variable rate, find the adjustment index and margin, how often the rate resets, and both the periodic and lifetime caps (and any floor). Ask how a reset could change the payment. The CFPB notes that a variable rate can rise and increase the payment.
3. Repayment term: Write down the exact number of months and the first and final payment dates. Compare it with the current loan’s estimated time remaining. A longer term may lower each payment and still increase what you pay overall.
4. Fees and how they are charged: Look for origination, application, and any other fee. Ask whether each is due upfront, deducted from loan proceeds, added to the balance, or billed separately. Confirm whether any fee is refundable if the loan does not close.
5. Autopay discount: Check the discount amount, how to qualify, the required bank-account or payment method, when it starts, and what happens if a payment is returned or autopay is stopped. Verify whether the final APR and payment shown already include the discount.
6. Co-signer terms: If there is a co-signer, confirm who is responsible for repayment and whether release is available. Read the release requirements, such as the number of on-time payments and any income or credit review. Release is not automatic; the CFPB says it depends on the loan terms.

Request the final rate, APR, fee schedule, payment schedule, and all conditions in writing. If any part of an estimate differs from the signed documents, use the written offer and ask the lender to explain the difference before deciding. For a broader list of rate, term, and cost trade-offs, see the CFPB’s refinance guidance.

04

Pause on federal loans and compare the protections too.

Federal program details can change. StudentAid.gov currently notes that federal student aid programs are being updated, so check your loan-specific status, repayment options, and eligibility directly with Federal Student Aid and your servicer before making a decision.

05

Use an estimate as a comparison aid.

The Aftergrad Ledger calculator uses your current balance and annual rate, plus either your current monthly payment or remaining term. Then enter a hypothetical fixed annual rate, refinance term, and fee. It displays each path’s estimated monthly payment, months to payoff, and total cost. Replace its sample inputs with the figures from your own records and offer; the example above can be reproduced by entering the same hypothetical values.