10/15/2026
Wow, this is some good information and things that need to be considered.
How much interest are you paying on your student loans every day?
With federal student loan interest rates for the 2026–2027 academic year remaining relatively high, refinancing into a private student loan may be worth considering. Lets look at the daily interest cost on $100,000 in student loans:
➡️ Undergraduate loans at 6.52%: $17.86 per day
🔜 Graduate loans at 8.07%: $22.11 per day
↪️ Parent PLUS loans at 9.07%: $24.85 per day
Now compare that to refinancing at a hypothetical 6% interest rate: $16.44 per day.
For someone with $100,000 in Parent PLUS loans, that's approximately $3,070 in annual interest savings, assuming the loan balance remains unchanged.
But there's an important tradeoff.
When you refinance federal student loans into private loans, you permanently give up federal protections, including income driven repayment options and eligibility for federal student loan forgiveness programs.
What happens if you lose your job or experience financial hardship?
Some private lenders, such as SoFi, offer unemployment assistance and temporary payment relief. However, not all private lenders provide the same flexibility.
Before refinancing, I encourage borrowers to compare more than just interest rates.
Understand what protections you're giving up and what options your new lender offers if your financial situation changes.
Saving money on interest is great. Losing important financial protections without understanding the consequences isn't.
Calculations assume a constant $100,000 principal balance and simple daily interest. Actual savings depend on loan terms, payments, and lender eligibility.
