Student Loans & Refinancing: How to Compare
If scholarships and grants don't cover college, loans usually fill the rest. This plain-English guide explains the order to borrow in, how to compare private student loans, and when refinancing helps or hurts. We don't rank lenders and nobody pays to be listed.
Borrow federal first
Federal Direct Loans have fixed rates (6.52% for undergraduates in 2026–27), don't need a credit check, and come with income-driven repayment, deferment and forgiveness programs. Private loans usually don't offer these protections.
Comparing private student loans
- APR, not just the rate. APR includes fees, so it is the fairer comparison.
- Fixed vs. variable. A variable rate can rise over the life of the loan.
- Cosigner release. Check how many on-time payments it takes to release a parent cosigner.
- Hardship options. Ask what happens if you lose your job: forbearance length, and whether interest still builds.
- Prequalify with a soft credit check at several lenders so your score isn't hurt while you compare.
Refinancing after graduation
Refinancing swaps one or more loans for a new private loan, ideally at a lower rate. It can save money if you have steady income and good credit. But refinancing federal loans turns them into private loans for good, so you lose income-driven repayment, Public Service Loan Forgiveness and federal deferment. Many borrowers refinance only their private loans.
Already repaying? Our sister site LoanRepaymentFinder lists state and employer student loan repayment programs that can pay down your balance.
Sources: Federal Student Aid, 2026–27 Direct Loan interest rates · Federal Student Aid, Direct Loan limits · 20 U.S.C. § 1087e (Parent PLUS limits from July 1, 2026)
This guide is general information, not financial advice. We are not a lender and don't receive your information.
Frequently asked questions
Should I take federal or private student loans first?
Federal first. Federal loans have fixed rates, no credit check for students, and protections like income-driven repayment that private loans generally lack.
Does refinancing federal student loans have downsides?
Yes. A refinanced federal loan becomes private, so you permanently lose income-driven repayment, Public Service Loan Forgiveness and federal deferment options.
Do you rank lenders?
No. We explain how to compare loans and don't accept payment for rankings.
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