What federal loans offer
Federal Direct Loans come with income-driven repayment options, forgiveness pathways including PSLF, and protections if income drops. Those features have real value that doesn't show up in an interest rate comparison.
Federal vs. Private Student Loans
The single most consequential distinction in student loan planning is whether a loan is federal or private, because that determines which options exist at all.
What private loans offer
Private lenders set their own rates and terms. A lower rate can reduce total interest, but the loan carries no federal repayment plans, no forgiveness pathway and fewer protections.
What refinancing actually does
Refinancing federal loans replaces them with a private loan. Generally, if payments on a private loan would be lower than payments on any of the federal plans, refinancing could be worth considering — but the federal options are gone permanently once it's done.
When the mix matters most
People with both federal and private loans often benefit from treating them as two separate problems with two separate strategies rather than one blended balance.
FAQ
Common questions
Should I refinance my student loans?
Generally, if the payments on a private loan would be lower than the payments on any of the federal repayment plans, refinancing could be a good option. This is educational information, not a recommendation for your situation.
Can private loans be forgiven?
No. Federal forgiveness programs apply to federal loans only.
Educational information only. Not legal, tax or individualized financial advice.
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Illustrative client example. Individual results and circumstances vary.