Federal Student Loan Refinancing | Earnest
Federal Student Loan Decision Hub
Your federal loans might cost more than you think
Refinancing isn't right for everyone. But if you're not actively using forgiveness or income-driven repayment, you could be leaving thousands on the table—let's take a look.
Fixed
APR Starting at
0%
Variable
APR Starting at
0%
(including 0.25% Auto Pay discount)
What's Happening Right Now
The federal loan landscape just got a lot more complicated
Three major developments have reshaped repayment for millions of borrowers.
We're tracking all of it so you can make a decision based on what's actually true today.
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SAVE is officially over: 7.5 million borrowers need a new plan
The Department of Education has ended SAVE, and borrowers must choose a new repayment plan. If you were on SAVE, your payment, forgiveness timeline, and budget have all changed.
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A new income-driven repayment plan will cost most borrowers more overall
The Repayment Assistance Plan launches July 1, 2026 as the replacement IDR option. Payments are set at 1–10% of adjusted gross income. But with a 30-year forgiveness timeline, most borrowers will pay more interest than under SAVE.
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OBBB was signed into law July 4, 2025, with major changes hitting July 1, 2026
The One Big Beautiful Bill eliminates most income-driven repayment plans, caps borrowing limits, and phases out Grad PLUS loans. The repayment landscape you planned around no longer exists.
Which Borrower Are You?
Your situation changes everything. See what we recommend:
Private sector, stable income
You're a strong candidate for refinancing
If you're in the private sector and not pursuing forgiveness, federal protections like PSLF don't apply to you. Income-driven repayment programs were designed for borrowers with income volatility—and they often cost more in total interest over time.
According to a 2025 Earnest study, only 1 in 10 borrowers who could save money by refinancing actually do. You're likely paying a higher interest rate than you need to.
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Pursuing PSLF at a government or nonprofit job
Do not refinance—protect your PSLF progress
If you're working toward Public Service Loan Forgiveness and making qualifying payments, refinancing to a private loan disqualifies you from the program entirely. PSLF forgives your remaining balance after 120 qualifying payments—that's a significant benefit worth protecting.
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Unsure about my plans
It depends—let's look closer
Career uncertainty is real, and it's worth considering. But many borrowers overestimate their need for income-driven repayment or forgiveness—especially those with stable income today.
If you're not actively enrolled in IDR and not counting on forgiveness, the "just in case" cost of staying federal may be thousands in extra interest. Use our decision guide to walk through the questions that actually matter.
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Decision Guide
Answer 3 questions. Get clarity.
Planning to qualify for PSLF?
If you work for a government agency, nonprofit, or qualifying public service employer and are making qualifying payments—refinancing would forfeit your PSLF eligibility entirely. Stay federal.
Expecting stable or growing income?
Income-driven repayment caps payments as a percentage of your income. If your income is variable or uncertain, that flexibility has real value. If it's stable, you likely don't need it.
Relying on IDR to make payments affordable?
If you're on standard repayment and can afford your payments, you're not using the protections people fear losing. If you don't expect to need those safety nets, refinancing could lower your rate.
Transparent Comparison
Federal vs. refinancing: the honest breakdown
| Feature | Federal loans | Earnest Refinancing |
|---|---|---|
| Interest rate | Set by Congress (6.39–8.94% in 2025) | Based on your credit |
| PSLF eligibility | ✓ Eligible | ✗ Not eligible |
| Income-driven repayment | ✓ Available (SAVE eliminated; RAP launching July 2026) | ✗ Not available |
| Payment flexibility | Limited options | ✓ Set your exact monthly amount |
| Skip-a-payment | ✗ Not available | ✓ Once per year |
| Origination fees | ✗ Fees apply | ✓ No fees, ever |
| Prepayment penalty | ✓ None | ✓ None |
The right choice depends entirely on your situation.
This table is designed to inform, not to push.
Still weighing your options? Read our full guide on private vs. federal student loans →
Common Misconceptions
What's actually true about refinancing federal loans
"I might need forgiveness someday, so I should keep my federal loans."
"Refinancing always means higher payments."
"I'll lose all my protections if I refinance."
"SAVE plan changes don't affect me—I'll just wait it out."
Why Earnest
Built differently. For borrowers who do their homework.
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No fees, ever
No origination fee, no prepayment penalty, no hidden charges. What you see is what you pay.
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Custom payments
Set the exact monthly payment that works for your budget—not one forced by a fixed term.
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Skip-a-payment
Life happens. Eligible borrowers can skip one payment per year without penalty fees when you need breathing room.
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Transparent rates
See your rate in just minutes with no credit pull.
How Earnest Compares
How refinancing with Earnest helps you
| Feature | Earnest | SoFi | Citizens | Laurel Road |
|---|---|---|---|---|
| Customizable terms | ✓ Up to 180 payment options | 5 standard payment options available | 5 standard payment options available | 5 standard payment options available |
| No late fees | ✓ | ✓ | ✗ | ✗ |
| 1 payment skip per year | ✓ | ✗ | ✗ | ✗ |
| Post-graduation grace period | ✓ Up to 9 months | 6 months | 6 months | 6 months |
The right choice depends entirely on your situation.
This table is designed to inform, not to push.
$26 billion
Total Student
Loans Refinanced
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Excellent — 4.7 out of 5
460,000+
Happy Clients
Earned
What Borrowers Say
Real people. Real savings. Real decisions.
“Exceptionally easy and fast process
Earnest does a great job of keeping you informed throughout the whole process through easy email updates.”
“I’m so glad I chose Earnest
I’m so glad I chose Earnest for my son’s college!! I’m beyond excited and grateful for all the support and encouragement you’re providing hopes and dreams!!”
“Earnest is the BEST
They worked with me from start to finish with getting my application together and sending it off. The team is very friendly, knowledgeable, and genuinely kind people.”
“Customer service was incredible
Easy to speak with a live person, friendly, and super patient with all my questions. Easy process!”
“Earnest rocks!
So easy, so transparent, and so kind! I love all the information they give within it that makes me feel informed and on top of my loan payments.”
“Thank you, Earnest!
This is the first company I have found that actually helps borrowers! I highly recommend it to anyone trying to lower their monthly payments and get out of debt once and for all!”
“Definitely recommend
It was very easy to go through the whole process. I really could not believe how easy it was to use and get everything set up.”
“Refinanced in less than 5 mins
No hidden fees, a simplified loan agreement that’s easy to understand, and very fair fixed rates. I didn’t even think twice to finalize it.”
“Great company
Easy and quick process. They explained everything and answered questions I had throughout the whole process.”
“Painless transition
Painless transition of refinancing my student loans!! Excellent customer service!! I am so pleased I chose Earnest!!”
“Great service!
I was able to speak with someone within 1 minute of my call. They were polite and answered every question I had. One of the best customer services!”
“Great experience
The process was very simple and quick. Everything was explained very clearly, so I knew what I was doing throughout the whole process.”
“The simplest process
There was no pressure and they addressed each of my questions and concerns before I signed anything. Easily the simplest process I've ever had regarding a loan.”
“Excellent customer service
The college loan process can be very intimidating. The representatives are always willing to answer any questions and have provided email updates along the way.”
“Glad I found these guys
They had the lowest interest rate among many other top name lenders. Everything was done online, communication was prompt, and it was very quick overall.”
“So easy and smooth
The process was so easy and smooth, with no surprises and no clunky interfaces. Why can't all student loan companies run like this?”
“Super quick and hassle-free
They took care of everything fast and I didn’t have to lift a finger with the school. Thank you for taking the stress out of college funding!!”
“As easy as it can be
I've never been to a loan company that really took matters into their own hands and made it feel like they truly wanted to help their students.”
“Awesome experience
My experience with Earnest was awesome! Filling out the online application was easy, and the college got the loan in a few days.”
“Very fast and efficient
I needed aid quickly to cover what FAFSA didn’t, and they made my experience smooth and stress-free!”
Ready to Know?
No credit impact. Real numbers.
See your rate and potential savings, then decide what's right for you. No commitment, no credit pull, no pressure.
✓ No credit pull to check rate
✓ No origination fees
✓ Takes just minutes
✓ A+ BBB rating
Disclosures
1 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans, 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.
3 Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 3.99% to 9.99% (4.24% - 10.24% without Auto Pay discount). Variable annual percentage rates (APR) range from 5.88% to 9.99% (6.13% - 10.24% without Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, MS, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and requires selection of our shortest term offered and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in Auto Pay is not required as a condition for approval.
4 This claim is based on analysis combining publicly available data and proprietary underwriting models. We applied our proprietary data and underwriting criteria to estimate the portion of borrowers who are credit-eligible and could achieve savings through refinancing. Actual savings and eligibility may vary based on individual circumstances, creditworthiness, and current loan terms. This analysis reflects market conditions as of 2025 and is subject to change.
5 Earnest clients may skip a payment through a one, one-month forbearance during a 12 month period. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement.
Interest will not be capitalized on loans originated to Michigan residents under the Regulatory Loan Act of 1963. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
6 Earnest will match up to nine months of your current grace period from your refinance date, or until your original grace period end date (whichever occurs first). Not available with the Principal and Interest Repayment plan while in school. Proof of grace and income verification required.