There’s little downside associated with refinance, and a large potential upside in terms of savings, and reducing your monthly payment. You’re free to refinance whichever assortment of loans you choose without being forced to refinance all at once.

Note that you may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other determent and forbearance options common with federal loans. If you file for bankruptcy, you may still be required to pay back this loan.

That said, you should always consult a financial advisor before taking any action. This article is not intended to be financial advice, and we urge you to do your own research independently.

Usually after people refinance a loan, we hear “why was that so easy?” The truth is that the process is fairly straightforward.

On a basic level, you’re taking out a new loan to pay off your old loan.

Since you’re employed and are perceived as ‘less risky’, your new loan ideally has a lower interest rate, saving you money in the long run.

The likely culprit: home mortgage refinance – between closing costs, cash-out refinancing that involves moving other debt around, and potential loss of protections, this cousin of student loan refinance gives all refinance a bad rep.

In contrast, student loan refi through Juno doesn’t have any fees involved, and is basically a straight 1:1 refinance – that means you can only get a new loan covering the cost of your existing student debt.
That means that you can’t borrow more than what you already owe. Student loan refi typically doesn’t involve collateral, unlike home mortgage refi where your house can be foreclosed on if you don’t pay your mortgage bills.
As always, please consult a financial advisor for additional context.

Remember, refinancing private student loan debt typically doesn’t result in the loss of protections; refinancing federal student loan debt can result in the loss of certain protections (income-driven repayment, forbearance options, etc).
You can always pick and choose what you’d like to refinance without affecting all your loans.

Rates hit historic lows back in November 2021, and started going back up since then. Given more likely upcoming rate hikes (as of October 2023), we think now is a decent time to get in before they go up even more. Plus, don’t forget that you have the option to refinance multiple times. Some of our members refinance their loans once a year if they can get a better rate.

Yes! All of our partners allow you to refinance Parent PLUS loans. Sometimes people want to change the name of the loan holder. Depending on the partner, it may be possible to refinance the loan into your child’s name. Individual results may vary.

With Earnest, you can only refinance loans already in your name as the primary borrower. If your parent is the primary borrower, the original lender may be able to transfer the loan from the parent to you, and then Earnest can refinance in your name.

It is possible to refinance a Parent PLUS loan into your child’s name with SoFi, but your child must apply. Please contact their Customer Support to learn more.

Laurel Road does allow you to refinance a Parent PLUS directly into your name.