Student Loan Refinance vs Income-Driven Repayment
**Refinancing** to a private lender can cut interest if you have strong credit—but you typically **lose federal protections**. **Income-driven repayment (IDR)** caps payments and may lead to forgiveness timelines.
Step by step
1. List federal benefits
IDR, PSLF, death/disability discharge, hardship deferments.
2. Model payment paths
Refi fixed rate vs IDR payment as % of discretionary income.
3. Forgiveness horizon
PSLF/IDR forgiveness may outweigh a lower private rate.
Refi vs IDR
High-income stable jobs favor refi; public sector or volatile income favor federal plans.
- Private refi: Lower rate possible; no federal forgiveness.
- IDR: Payment tied to income; taxable forgiveness possible.
Use our calculators
Common mistakes
- Refinancing before PSLF eligibility check
- Ignoring spouse income on IDR plans
FAQ
Can I undo refinancing?
Generally no—federal loans are paid off and replaced by private debt.