3 signs you’re ready to refinance your law school loans

By Tiffany Curtis | Published on October 21, 2025

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Law school can lead to a rewarding legal career—but it often comes with a hefty financial burden. According to the Education Data Initiative, the average law school graduate owes $130,000 in student loan debt. And that number can be higher for some people depending on which law school they attended. If you’re exploring ways to manage that debt, refinancing might be worth a closer look.

Refinancing student loans can be a smart strategy to manage or reduce the cost of law school debt, but timing matters. Certain life milestones can determine when to refinance your law school loans—especially if your financial circumstances have improved since graduation.

Here are three signs it might be the right time to refinance:

1. You’re earning significantly more now

If you’ve landed a full-time legal position, received a promotion, or a raise, you may be in a good spot to refinance law school loans. Lenders typically evaluate your debt-to-income ratio when reviewing your application. A higher and more stable income may improve your chances of getting approved.

With better income, you could qualify for a lower interest rate—helping to lower your law school loan payments or reducing the amount of interest that you’ll pay over the life of the loan. A stronger income can also open the door to more flexible loan options.

2. Your credit score has improved

Your credit score plays a big role in the interest rate you’re offered when you refinance law school loans. If you’ve improved your credit score by making on-time payments, lowering your credit utilization, or maintaining a good credit history, you may qualify for more competitive refinance rates.

Access to better interest rates can help pay off your law school loans sooner, in the following ways:

• More of your payment will go toward the principal amount
• The total cost of borrowing is reduced
• You may have the opportunity to choose a shorter loan term

3. You want to aggressively pay off debt faster

If you’re focused on eliminating debt quickly, refinancing student loans can help. Refinancing can give you a shorter loan term at a lower interest rate. With a shorter term, more of your payment goes toward the loan’s principal amount rather than interest, potentially saving you thousands of dollars.

However, be aware of the trade-offs. Federal student loans come with benefits like income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). IDR plans lower your federal student loan payments based on your income, and if you work in public service, the PSLF program can forgive your remaining balance after 120 qualifying payments. When you refinance federal loans, they become private loans—and you lose access to those federal protections.

If you're pursuing a career in the public sector or may qualify for loan forgiveness, weigh the potential benefits of refinancing against the protections you might be giving up.

Should you refinance your law school loans?

Refinancing isn’t the right choice for every law school graduate. But if you’ve reached one or more of these financial milestones, it might be worth considering. Be sure to review your loan types, financial outlook, and weigh the pros and cons of refinancing before making a decision.

Curious how much you could save by refinancing? Check your student loan refinance rate today—it’s quick, free, and won’t impact your credit score.

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About the Author

Tiffany Curtis

Tiffany Lashai Curtis is a writer & content strategist who writes about personal finance, health, and arts & culture. She has almost a decade of experience in digital media and has written for brands like NerdWallet, Business Insider, Livestrong, and more. You can find her taking dance classes in Philly when she's not writing.

Disclaimer

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