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Student Loan Refinancing Calculator: Should I Refinance My Student Loans?

Want to refinance your student loans? Here are the best student loan refinancing calculators you can use in 2020.

Whether or not they should refinance their student loans is one of the most common questions that student loan borrowers ask. A student loan refinancing calculator helps answer that question.

To refinance means to replace existing student loans with a new one that could have a lower interest rate, monthly payment, or both. When a person first takes out a student loan, the rates are either set by the government (for Federal loans) or based on your credit profile (for private loans). Individuals may be able to secure better loan terms (such as a lower rate) as they enter the workforce and improve their credit profile. For this reason, it makes sense to compare your repayment options regularly, including refinancing.

With that being said, getting a lower rate as a repayment option has its pros and cons. However, the most important thing is to use a student loan refinancing calculator to find out whether refinancing would be a better route for you or not.

Read on to learn about the 3 best student loan refinancing calculators you can use.

Student Loan Refinance Calculator: How It Works

The student loan refinance calculator (sometimes called a loan consolidation calculator) gives you a detailed overview of your refinanced loan.

Most calculators require the following data points about your existing student loan:

  • Loan Balance
  • Interest Rate
  • Years Remaining On Loan Repayment
  • Your Credit Score

Once you’ve populated the relevant fields, the student loan refinance calculator will ask you to select the new interest rate. Make sure you know whether it’s a fixed-rate loan or a variable-rate loan.

Most calculators will provide the estimated details for your new refinanced loan, such as the interest rate, monthly payment and total cost of the new loan.. Hopefully the outcome is something that better fits your income and savings. 

3 Best Student Loan Refinancing Calculators

1.       FutureFuel.io

Did you know you could optimize your student loans without refinancing?

FutureFuel.io’s Reassess tool demystifies the eligibility requirements for all government-sponsored plans.

When you refinance Federal student loans, you may risk losing certain protections like access to potential loan forgiveness and loan discharge options.

Use FutureFuel’s Reassess tool to calculate how much you could save with personalized insights! The average borrower saves between $260 – $326 per month with Reassess.

2.       Student Loan Hero

Student Loan Hero’s Student Loan Refinancing Calculator helps you calculate your new loan balance, interest payments, and repayment term after refinancing your student loan.

You enter your current loan balance, average interest rate, and the remaining loan term. Then, you enter the new loan interest rate and the new loan term in years.

The results will show you a comparison of your current and refinanced loan. It’ll show you the difference in total debt, monthly payments, and the total loan term.

3.       MagnifyMoney

MagnifyMoney’s Student Loan Refinancing Calculator provides details on how much your refinanced loan can help you.

After you enter your current and new loan info, it’ll calculate the new refinanced loan values. It’ll show you the total interest paid, monthly payments, interest rate difference, and term in years for your original and new loan. It’ll show you the total savings on each factor, as well.

You can use the information to make an informed decision on refinancing your loans and see if they’re worth it.

When Should You Refinance Your Loans?

Repaying student loans on a streamline repayment term is no easy task. Millions of borrowers are struggling to clear their student debt from federal student loans and private student loans.  At present, according to NerdWallet, student loan debt has risen to an estimated $1.6 trillion.

Additionally, NitroCollege released a report indicating that the average student loan debt amount was just north of $37,000.

Debtors are trying everything to clear themselves of their loan amount, including exploring Income-Driven Repayment Plans and forgiveness options.

One of the most common ways is to reduce their high interest loans into lower interest ones, or in other words, refinance them.

However, you may want to reserve refinancing for private student loans. If you choose to refinance federal loans, you may risk losing certain protections like income-driven plans and forgiveness options. Furthermore, make sure you only refinance if you have a good credit report and want to increase your savings.

On the other hand, avoid refinancing if you’re expecting a drop in your income or have applied for student loan forgiveness. Keep in mind that you can’t refinance your loans if you’ve filed for bankruptcy or have defaulted on a loan.

Start Using a Student Loan Refinancing Calculator

If you decide to refinance your student loans, a student loan refinance calculator will be an essential tool. With it, you can keep track of your repayment plan.

You should also consider other student loan payment solutions.

Programs that offer employer student loan repayment services are one such solution.

If you combine the calculator’s use with a student loan repayment company like FutureFuel.io, you could double your efforts and clear your debt faster.