Can you refinance student loans while in school?

By Victoria Holliday | Published on October 21, 2025

)

Refinancing student loans is often associated with post-graduation financial planning, but did you know it might be an option even while you’re still in school? Your ability to refinance while in school hinges on various factors, including your current enrollment status and the specific type of loans you’re carrying. Thinking about refinancing your student loans before graduation? Let’s explore your options.

Understanding student loan refinancing

Student loan refinancing ¹ means replacing your existing loan with a new one, usually to get a lower interest rate or better repayment terms². While it is not common for students to refinance before they graduate, there might be some reasons it makes sense:

1. Getting a potentially lower interest rate
2. Consolidating multiple loans into one
3. Removing a cosigner
4. Switching from variable to fixed interest rates

However, refinancing while in school can be challenging. Many lenders prefer borrowers who have graduated and have steady income. Also, if you refinance federal loans it means you will lose out on benefits like income driven repayment plans and potential loan forgiveness. Before you refinance it is important to weigh the pros and cons, your financial situation, and long-term goals.

Is refinancing while in school the right decision

While refinancing student loans while you are in school isn’t common, it’s not impossible. Most lenders prefer borrowers who have graduated but there are exceptions.

For example, Earnest offers refinancing to qualified students who will complete their degree by the end of the semester. This can be a game changer for those nearing graduation who want to get a head start on managing their debt.

Why do most lenders prefer to refinance graduates, not students?

1. Stable income: Graduates are more likely to have full-time jobs and a steady income to repay their loans
2. Completed degree: Less risk of a borrower dropping out and potentially struggling to repay their loan
3. Established credit: Degree holders have more time to build a credit history
4. Career prospects: A completed degree helps unlock better employment opportunities and income potential

Always compare multiple lenders to find the best terms for your unique situation.

Steps to take if you’re considering in-school refinancing

If you’re exploring refinancing while in school here are some key steps to help you in the process:

1. Check your credit score: Most lenders require a good credit score to refinance. If yours needs improvement, consider ways to boost it before applying
2. Research lenders: Look for ones who offer in-school refinancing. Compare their rates, terms, and eligibility requirements
3. Calculate potential savings: Use calculators to see how refinancing might financially benefit you
4. Evaluate federal loan benefits: If you have federal loans carefully consider the protections you might lose if you refinance
5. Plan for repayment: Make sure you can manage payments during school and with your other expenses

Remember that refinancing while in school is one of many tools at your disposal. Your education is an investment in your future and managing your loans effectively is part of that journey.

Whether you refinance while in school or post-graduation, the key is to stay informed, plan, and research so you can align your loan repayments with your long-term goals.

)

About the Author

Victoria Holliday

Victoria is the Head of Content at Earnest. She brings extensive ed-tech expertise from six years at Chegg, where she developed educational resources reaching over 20 million students nationwide.

With a Master’s in Political Science and experience in public policy from several California campaigns, she’s passionate about creating accessible content that enhances student outcomes in the dynamic world of higher education.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.