Student Loan Refinancing Rates: How Much Does Student Loan Refinancing Save in 2026?

Current Student Loan Refinancing Rate Environment

Student loan refinancing rates in September 2026 reflect a market that has settled after three Fed rate cuts in late 2025. The Federal Reserve has held its benchmark rate at 3.50%–3.75% since December 2025, voting 9-3 at its July 29, 2026 meeting to hold steady, with three dissenters who wanted a hike. The 30-day average SOFR sits at approximately 3.66%, down sharply from the mid-4% range earlier this year. For borrowers with strong credit, that translates to fixed refinancing rates starting around 3.98% APR and variable rates starting around 3.65% APR. For borrowers with average credit, fixed rates typically land between 6% and 9%.

One thing to watch: markets currently price in the possibility of rate hikes before year-end, not cuts. Three Fed officials dissented at the July meeting in favor of raising rates, citing persistent inflation above the 2% target. If rates move higher, variable-rate borrowers feel it first.

We track refinancing rates from the best student loan refinance lenders: seven that also offer in-school origination loans in our private student loan review series (SoFi, Earnest, College Ave, Citizens, ELFI, EdvestinU, and INvestEd) plus three refinancing specialists (Laurel Road, RISLA, and Splash Financial). Rates are verified directly from lender disclosures and include autopay discounts where applicable. All rates are subject to change; see each lender’s website for current pricing.

Before refinancing federal loans: Refinancing federal student loans with any private lender permanently converts them to private loans. You lose access to income-driven repayment, Public Service Loan Forgiveness (PSLF), federal forbearance, and death-and-disability discharge. The federal repayment landscape has changed significantly under the One Big Beautiful Bill Act (signed July 2025): the SAVE plan is gone, PAYE and ICR close no later than July 1, 2028 (new enrollment in both plans closed July 1, 2027); SAVE is already gone, eliminated by statute and court order. The new Repayment Assistance Plan (RAP) launched July 1, 2026 and is the only income-driven option for borrowers whose first loan disbursement is on or after that date; borrowers with pre-July 1, 2026 loans retain access to IBR (now without a partial financial hardship requirement) and may also elect RAP. PSLF remains available for most federal borrowers, but Parent PLUS loans first disbursed on or after July 1, 2026 are no longer eligible for PSLF. The repayment plans that qualify for PSLF have also changed. Borrowers pursuing PSLF or enrolled in income-driven repayment should keep their federal loans. Refinancing makes the most sense for private loan holders and federal borrowers who are certain they will not use federal repayment benefits.

Student Loan Refinancing Fixed Rates by Lender

The table below shows the current fixed APR range, origination fee, and our rating for each of the 10 refinancing lenders we review, sorted from lowest to highest floor rate. Rates include autopay discounts where applicable. The lowest advertised rate is typically reserved for the top 10% of applicants with the strongest credit profiles and shortest terms.

Notes: RISLA offers fixed rates only (no variable option). Rates include autopay discount (typically 0.25%). RISLA’s lowest rate includes the RI Advantage discount for Rhode Island-connected borrowers; non-RI borrowers will see higher rates. Splash Financial rates vary by partner lender. All rates verified as of September 2026 and are subject to change.

Student Loan Refinancing Variable Rates by Lender

Nine of our 10 refinancing lenders offer variable rate options. Variable rates are tied to the 30-day Average SOFR (Secured Overnight Financing Rate) or the Prime Rate plus a margin. With SOFR now near 3.66%, variable rates for well-qualified borrowers start below comparable fixed rates, a shift from earlier in the year when the two were nearly even. Variable rates can increase over the life of the loan, making them riskier for longer terms. With three Fed officials dissenting in favor of a rate hike at the July 2026 meeting, that risk is real. RISLA does not offer variable rates.

Notes: RISLA is excluded from the variable rate table because it offers fixed rates only. Laurel Road’s variable rates are capped at 15.00%. Splash Financial variable rates and caps vary by partner lender. Medical school refinancing through Splash and Laurel Road may have different variable rate ranges. Rates verified as of September 2026.

Rate Snapshot: What the Average Borrower Pays

The rate tables above show advertised ranges, but the average refinancing borrower does not receive the floor rate. Based on lender disclosures and third-party data, here is what typical approved borrowers can expect:

• Top-tier borrowers (760+ FICO, low DTI, short term): Fixed 4.0% to 5.5% APR. This is the segment that benefits most from refinancing, often saving 2-4 percentage points compared to their original rates.
• Strong borrowers (720-759 FICO, moderate DTI): Fixed 5.5% to 7.5% APR. Still meaningful savings for borrowers who originally borrowed at 6-8% or higher.
• Average borrowers (680-719 FICO): Fixed 7.0% to 9.0% APR. Savings depend on original rate; borrowers near the 680 minimum may see limited benefit.
• Below-average borrowers (650-679 FICO): Fixed 8.5% to 10.5% APR. Only a few lenders (Splash, some Citizens products) serve this tier. May not save enough to justify losing federal protections.

These are estimates based on lender disclosure patterns and typical approved borrower profiles reported by NerdWallet, Education Data Initiative, and lender annual reports. Your actual rate depends on credit score, income, debt-to-income ratio, loan amount, term, and whether you have a co-signer.

Breaking Down the True Cost of Refinancing

The interest rate gets the headline, but several other factors affect the true cost of a refinanced student loan.

APR vs. interest rate. APR (Annual Percentage Rate) wraps the interest rate and mandatory fees into a single annualized figure. For most refinancing lenders in our review, the APR and interest rate are identical because they charge zero origination fees. The exception: if a lender charges fees (rare in refinancing), the APR will be higher than the stated rate. Always compare APR to APR.

Origination fees. All 10 lenders in our refinancing review charge zero origination fees. This is a meaningful advantage over the personal loan market and some in-school student loan products (MPOWER charges 5%, Prodigy charges 4-5% on origination loans). Zero origination means the loan amount you receive equals the amount disbursed to pay off your existing loans.

Fee Comparison: Refinancing Lender Fee Structures

Key takeaway: RISLA, SoFi, Earnest, and INvestEd charge zero fees of any kind. These four lenders offer the cleanest fee structures in the refinancing market. Laurel Road, ELFI, and some Splash partners charge late fees, which can add up for borrowers who occasionally miss due dates.

Rate Discounts: How to Stack Savings

Most refinancing lenders offer at least one rate discount. Some allow multiple discounts to be combined (stacked), which can meaningfully reduce your effective rate.

Biggest stacking potential: EdvestinU (up to 2.00% for NH residents with autopay), RISLA (up to 2.00% for RI-connected borrowers), and Laurel Road (up to 0.80% with a checking account). For borrowers without a geographic connection, Laurel Road’s checking account discount (0.55%) and Citizens’ loyalty discount (0.25%) are the most broadly accessible stacking options.

Sample Cost Comparison: $60,000 Refinancing Loan

The table below shows estimated monthly payments and total interest for a $60,000 refinanced loan at different rate and term combinations. These illustrations assume fixed rates with immediate repayment. Your actual rate will depend on your credit profile.

Key insight: The difference between a 4.50% rate and an 8.50% rate on a $60,000 loan over 10 years is approximately $14,600 in additional interest. This illustrates why shopping across multiple lenders and stacking rate discounts matters. Even a 0.50% rate reduction on a $60,000 balance saves roughly $1,600 to $2,000 over 10 years.

Fixed vs. Variable Rates: Which to Choose for Refinancing

Choose fixed if: you plan to take 7+ years to repay, you want payment certainty, or you’re concerned rates could rise. Fixed rates lock in your payment for the entire term. In the current environment, fixed floors are around 3.98% and variable floors around 3.65%, a spread of roughly 0.33 percentage points. That’s a narrow premium for certainty. Most refinancing borrowers should default to fixed.

Choose variable if: you plan to pay off the loan in 3 to 5 years and can absorb payment increases. Variable rates can save money in the short term but carry meaningful risk if rates rise. At the July 2026 Fed meeting, three officials wanted to hike, not cut. If your variable rate climbs from 5.5% to 8.5% over a 15-year term, you may end up paying more than if you had locked in a fixed rate at 6.5%.

In the current rate environment (September 2026), the gap between fixed floors and variable floors has narrowed considerably as SOFR has declined to approximately 3.66%. The risk-reward calculation favors fixed rates for most borrowers, especially with Fed rate hike risk back on the table.

How Refinancing Rates Compare to Federal Loan Rates

Understanding where refinancing rates sit relative to current federal rates helps borrowers assess whether refinancing makes financial sense.

Borrowers most likely to benefit from refinancing: those with older federal loans originated at higher rates (2018-2023 vintages at 5-8%), Parent PLUS loan holders at 9.07% for 2026-27, and anyone with private loans originated above today’s refinancing floors. The 2026-27 undergraduate rate is 6.52% and the graduate unsubsidized rate is 8.07%. Borrowers at the undergraduate rate will find limited savings unless they have exceptional credit. Graduate and Parent PLUS borrowers at higher federal rates have more room to benefit, but only if they are certain they won’t use federal repayment benefits.

One important update: Grad PLUS loans have been eliminated as of July 1, 2026 for new borrowers under the One Big Beautiful Bill Act, meaning any graduate student who had not received a federal Direct Loan disbursement before July 1, 2026. Graduate students who did receive a Direct Loan (including a Grad PLUS or Unsubsidized loan) before that date and remain continuously enrolled in the same program may continue borrowing Grad PLUS for up to three additional academic years or until program completion, whichever comes first. All other graduate students can only borrow through Direct Unsubsidized loans, capped at $20,500 annually and $100,000 lifetime (or $50,000 annually and $200,000 lifetime for professional programs). Many graduate students who hit those caps will need private loans to cover remaining costs, making the private vs. federal rate comparison more relevant than ever for graduate borrowers.

Remember: federal loan rates are fixed by Congress and carry income-driven repayment options, PSLF eligibility (where applicable), and federal forbearance protections. For loans first disbursed on or after July 1, 2026, the only income-driven option is RAP. For loans taken out before that date, Income-Based Repayment (IBR) remains available, and borrowers with pre-July 1, 2026 loans may also elect RAP. The OBBBA removed the partial financial hardship requirement for IBR, so IBR is now open to any borrower with eligible federal loans regardless of income. Private refinancing rates are lower for strong borrowers but come without any of these protections. RISLA is the only private refinancing lender with income-based repayment.

How to Get the Lowest Refinancing Rate

1. Prequalify with at least three lenders. Every lender in our review offers soft-pull prequalification. Check RISLA, Earnest, SoFi, and Splash at a minimum. Each may offer a different rate for the same borrower. The process takes 3 to 5 minutes per lender and does not affect your credit score.
2. Choose the shortest term you can afford. Lenders offer lower rates on shorter terms because there is less risk of default. A 5-year term typically carries a rate 0.5% to 1.5% lower than a 15-year term. If you can afford the higher monthly payment, the shorter term saves on both rate and total interest.
3. Enroll in autopay before closing. Every lender in our review offers a 0.25% autopay discount (EdvestinU offers 0.50%). This is the easiest and most universal rate reduction available. Set it up during the application process.
4. Stack additional discounts. Open a Laurel Road Checking account for up to 0.55% additional savings. Use the Citizens’ loyalty discount (0.25%) if you already bank with them. RISLA and EdvestinU offer geographic discounts for RI and NH residents, respectively.
5. Improve your credit before applying. Pay down credit card balances, correct errors on your credit report, and avoid opening new accounts in the months before applying. Moving from a 720 to a 760 FICO can drop your rate by 0.5% to 1.0%.
6. Consider a co-signer if eligible. RISLA, Earnest, Citizens, ELFI, College Ave, EdvestinU, and INvestEd accept co-signers. A co-signer with stronger credit can reduce your rate meaningfully. Note: Splash Financial does not accept co-signers.
7. Time your application carefully. The next Fed meeting is September 15-16, 2026. With three officials pushing for a hike, rate direction is genuinely uncertain. If you can lock in a rate now that beats your current loan by at least 1 percentage point, acting before the meeting is defensible. Most rate quotes are valid for 30 to 60 days after prequalification.

Rate Trends and Outlook

Private refinancing rates generally follow the Federal Reserve’s benchmark rate with a lag. The three Fed rate cuts in late 2025 (totaling 75 basis points) have worked through to refinancing pricing, contributing to fixed floors near 4% and SOFR near 3.66% as of September 2026. The direction from here is less certain than it was six months ago. Three Fed officials voted to raise rates at the July meeting, citing inflation still above the 2% target. A hike at the September 15-16 meeting would push variable rates higher almost immediately.

For borrowers deciding when to refinance, the practical guidance is the same as it has always been: if you can currently qualify for a rate at least 1 percentage point below your existing rate, the savings justify acting now rather than waiting. The gap between today’s rates and a hypothetically lower future rate is almost always smaller than the interest accruing while you wait. With rate hike risk re-entering the picture, that calculus is tilting more toward acting than waiting.

Methodology

Rates in this post are sourced directly from lender websites and disclosures, verified as of September 2026. All fixed and variable APRs include the lender’s standard autopay discount (typically 0.25%). The sample cost comparison uses standard amortization calculations assuming fixed rates with immediate repayment and no additional fees. Rate averages are simple averages across the 10 lenders reviewed. The rate snapshot estimates are informed by lender disclosures (e.g., “approximately 10% of applicants qualify for the lowest rate”), Education Data Initiative, and typical approved borrower profiles. For the full lender review methodology, see our Student Loan Refinancing Reviews hub page.

Private Student Loan Variable Rates by Lender

Not all lenders offer variable rates. Of the 15 lenders we review, 11 offer variable rate options. Variable rates are typically tied to the 30-day Average SOFR or the Prime Rate plus a margin. With SOFR near 3.66% as of September 2026, variable rates are now running below fixed rates for well-qualified borrowers, a shift from earlier this year. Variable rates can increase over the life of the loan, making them riskier for long-term borrowing.

Breaking Down the True Cost of a Private Student Loan

The interest rate gets all the attention, but it is not the only thing that determines what your loan actually costs. Private student loans have several cost components that interact in ways personal loans do not.

APR (Annual Percentage Rate) is the number that matters most because it wraps the interest rate and mandatory fees into a single figure. When a lender charges a 5% origination fee (like MPOWER), the effective APR is significantly higher than the stated interest rate. Always compare APR to APR, not interest rate to interest rate.

Origination fees are rare in private student lending, but not extinct. Of our 15 lenders, only MPOWER (5%) and Prodigy Finance (4-5% administration fee) charge one. The remaining 13 charge zero origination fees, which is a meaningful advantage over the personal loan market, where origination fees are common.

In-school repayment choice is a hidden cost driver unique to student loans. Deferring all payments during school is convenient, but unpaid interest capitalizes (gets added to your principal) after the grace period. On a $30,000 loan at 6% over four years of school, plus a six-month grace, capitalized interest adds roughly $8,500 to the balance. Choosing interest-only payments during school can save 17% or more on total loan cost. This is not about the rate. It is about the repayment structure you select.

Late fees vary by lender. Five of our 15 lenders charge zero late fees: Abe, SoFi, Ascent, Custom Choice, and ISL Education Lending. Others charge 5% of the past-due amount, typically capped at $25 to $50. Prepayment penalties are nonexistent across all 15 lenders we reviewed.

What Actually Affects Your Rate

Your co-signer’s credit score is the single biggest factor. Private student loans are underwritten primarily on the creditworthiness of the co-signer, not the student. Approximately 90% of undergraduate private student loans are co-signed. A co-signer with a FICO score above 750 can help secure rates in the 3% to 5% range. Without a co-signer, most undergraduates will face significantly higher rates, if they qualify at all. Sallie Mae reports that students are 3.5 times more likely to be approved with a co-signer.

Your in-school repayment choice affects the rate itself at some lenders, not just the total cost. Sallie Mae, for example, offers rates 0.5 to 1 percentage points lower for borrowers who choose interest-only payments versus full deferral, because the lender’s risk is reduced by in-school payments. Abe and College Ave similarly adjust rates based on repayment options.

Loan term length matters. Shorter terms (5 to 7 years) generally carry lower APRs than longer terms (15 years) because the lender’s money is at risk for less time. The monthly payment will be higher on a shorter term, but the total interest paid will be substantially less.

Your school and degree program can influence pricing. Some lenders adjust rates based on degree type (graduate and professional programs sometimes qualify for different rates) or school. The cost of attendance, which determines maximum loan amount, also factors in: larger loans at higher-ranked schools may carry modestly different pricing.

The type of lender you choose matters more than most families realize. Nonprofit lenders like ISL Education Lending, EdvestinU, and INvestEd consistently offer the lowest rate ceilings (8.70% to 10.49%) because they are not maximizing profit. Fintechs like Sallie Mae, Earnest, and College Ave offer the lowest rate floors (2.75% to 4.49%) but also the highest ceilings (15% to 17%). Specialist lenders serving international students (MPOWER, Prodigy) charge the highest rates (10%+) because they are underwriting borrowers with no U.S. credit history.

How to Actually Get a Lower Rate

Get prequalified with multiple lenders. This is the single most impactful thing you can do. Most of our reviewed lenders (College Ave, Earnest, SoFi, Ascent, Custom Choice, Abe, ELFI, ISL, and EdvestinU) offer soft-pull prequalification, which lets you see estimated rates without impacting your credit score. Get quotes from at least three to five lenders and compare APRs. Sallie Mae is a notable exception: it does not offer soft-pull prequalification and performs a hard inquiry on application.

Bring the strongest co-signer you can. The co-signer’s credit profile drives the rate more than any other factor. If you have access to a co-signer with a 750+ FICO score and stable income, you will qualify for the lowest advertised rates. Some borrowers shop among family members to find the strongest co-signer available.

Choose interest-only payments during school. This not only saves 15% to 17% on total loan cost by preventing capitalization, but at some lenders, it also qualifies you for a lower interest rate. The monthly cost during school is real (on a $30,000 loan at 6%, interest-only payments are about $150/month), but the long-term savings are substantial.

Enroll in autopay. Most lenders offer a 0.25% rate discount for automatic payments. EdvestinU and Funding U offer 0.50%, double the standard. It is free money; enroll immediately after disbursement.

Choose the shortest term you can afford. A 10-year loan almost always carries a lower APR than a 15-year loan. On a $30,000 loan, the difference between 10 and 15 years at 6% fixed is roughly $5,600 in total interest. If you can handle the higher monthly payment, the shorter term wins.

Consider nonprofit lenders. ISL Education Lending caps at 8.70% fixed, EdvestinU at 10.44%, and INvestEd at 10.49%. Even their worst-case rates are better than the mid-range rates at most fintech competitors. If downside protection matters more than chasing the absolute lowest floor rate, nonprofits deserve serious consideration.

Fixed vs. Variable Rates: Which Should You Choose?

Fixed rates stay the same for the life of the loan, providing predictable monthly payments. Variable rates are tied to a benchmark index (usually SOFR or Prime) and can increase or decrease over time. In September 2026, SOFR sits near 3.66%, and the spread between fixed and variable floor rates has narrowed to roughly 0.33 percentage points. The case for taking variable-rate risk is weaker than it was when SOFR was near 5%.

For a 10 or 15-year student loan, fixed rates are the safer choice. If rates rise over the next decade, a variable-rate borrower could see their monthly payment increase significantly. Variable rates may make sense for borrowers who plan to repay within three to five years and can absorb payment swings. If you are unsure, choose fixed.

Four lenders in our review offer fixed rates only (ISL Education Lending, EdvestinU, Funding U, and MPOWER), while one (Prodigy Finance) offers variable rates only. The remaining 10 offer both.

How Private Rates Compare to Federal Student Loan Rates

The advertised floor rates for private loans are lower than federal rates, which creates an understandable temptation. But only the most creditworthy borrowers with strong co-signers qualify for those floor rates. The average private student loan borrower pays a rate comparable to or higher than the federal rate, while giving up income-driven repayment, forgiveness programs, and hardship protections that federal loans provide. For 2026-27, the federal undergraduate rate is 6.52%, the graduate unsubsidized rate is 8.07%, and the Parent PLUS rate is 9.07%. All with origination fees of 1.057% for Subsidized and Unsubsidized loans and 4.228% for Parent PLUS. Always exhaust federal options first.

The Bottom Line

Private student loan rates in 2026 range from a floor of 2.70% fixed (ISL Education Lending) to the high teens when origination fee impact is included for lenders such as MPOWER, which charges a 5% origination fee on top of its stated interest rate. The average low fixed APR across our 15 reviewed lenders is 4.53%, and the average high is 14.79%. For variable rates, the average low is 4.98%, and the average high is 15.42%.

The biggest mistake you can make is accepting the first offer you see. The spread between the cheapest and most expensive lender for the same borrower profile can be 5 percentage points or more, which translates to thousands of dollars over a 10 or 15-year term. Prequalify with multiple lenders, bring a strong co-signer, choose interest-only payments during school if you can afford them, enroll in autopay, and always exhaust federal loan options first.

One thing to verify before you act: the federal landscape changed materially on July 1, 2026. Grad PLUS is gone for new borrowers, Parent PLUS now carries hard borrowing caps and limited repayment options, and the SAVE plan is no longer an option. If you have older federal loans and are considering refinancing to capture a lower rate, check your current repayment plan status and PSLF payment count before you do anything. Refinancing is irreversible.

Data and methodology: Rates are sourced from lender websites and disclosure documents, verified as of September 2026. Averages are calculated across all lenders that offer the respective rate type (14 lenders for fixed, 11 for variable). Federal rates are for the 2026-2027 academic year as published by the U.S. Department of Education following the May 12, 2026 Treasury auction. For individual lender details, see our full reviews. Rates are updated monthly.

Clara Hayes Editor

Clara is a personal finance editor with over a decade of experience covering personal loans, debt management, and borrowing strategies. Her connection to the subject is personal. After watching her parents go through the devastating effects of bankruptcy, she committed herself to helping others make informed financial decisions before reaching that point. She has spent her career breaking down the complexities of personal lending, from comparing rates and terms to understanding the real cost of debt, so readers can borrow with confidence and build a path toward financial stability. Her work is guided by a simple belief: The right information at the right time can change someone’s financial future. Questions or comments? Contact me at: clara@rateschaser.com.

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