Can You Refinance Student Loans More Than Once?

By Mike Brown Updated on May 7, 2019

If you’ve refinanced your student loans before, you know how useful this strategy can be for lowering your monthly payments and cutting interest.

You may wonder if you can refinance your student loans more than once. The answer is yes—but it may not be worth the effort. Ask these questions to see whether additional refinancing is right for you.

Can you refinance at a lower rate?

In order to refinance your student loans—whether for the first time or the third—you will need to meet certain requirements to get the best interest rate.

Lenders want to see that you have:

  • A significant and reliable source of income
  • A history of consistent repayment in the past
  • A low debt-to-income ratio, and
  • A good credit score.

How many times can you refinance student loans?

There’s technically no limit to how many times you can refinance student loans.

You may want to refinance to secure a better interest rate, change the length of the loan, or convert an adjustable rate loan to a fixed rate loan. 

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When does it make sense to refinance more than once?

You're most likely to benefit from refinancing your student loans if you have a lot of student debt and a high interest rate.

If you refinanced previously and secured a very competitive rate, you probably won’t save much by refinancing again. But if your finances and credit score have improved significantly since the last time you refinanced—and if interest rates have gone down—there may be an opportunity for savings.  

Also, if you've already consolidated student loans, refinancing can still be a good option.

What else should you consider before refinancing again?

Here are some other questions to ask before you refinance again:

  • What is the length of your current loan’s term and how many payments remain? Refinancing again could increase your number of payments, potentially raising the amount of interest you’ll pay.
  • What fees or costs come with refinancing? These extra costs may outweigh any savings. (See our picks for the best companies for no-fee student loan refinancing.)
  • How much principal remains to be paid? If you’re close to paying off your student debt, a lower interest rate or different loan terms probably won’t save you much money.

In any case, it's wise to calculate how much you’ll save by refinancing again. See if you're ReFi Ready

Published in: Refinance

About the Author
Mike Brown

Mike is responsible for the editorial and marketing direction of Nitro. He has a history of helping people through his educational background—first as a teacher at the Pennsylvania State University and then through 15 years of development and marketing of education programs. Read more by Mike Brown