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Is it bad to refinance student loans multiple times? If you can save money by doing so, the answer is no. In fact, refinancing student loans more than once could be beneficial if it keeps lowering your interest rate. Read on to learn about “re-refinancing” your student loans, including both the benefits and the potential pitfalls to avoid.
- Can I refinance my student loans more than once?
- 6 times to consider refinancing student loans multiple times
- When it could be bad to refinance student loans multiple times
- Final thoughts: How often should you refinance your student loans?
Can I refinance my student loans more than once?
So, can you refinance student loans more than once? Yes, as long as you can meet a lender’s underwriting requirements.
Before approving you for refinancing, a lender looks at your credit and income. If you can meet its criteria — or apply with a cosigner who can — you could qualify for refinancing, even if you’ve already refinanced student loans in the past.
Student loan refinancing can have a number of perks; you may be able to,
- Lower your interest rate and save money
- Choose new repayment terms on your debt
- Adjust your monthly payments
- Consolidate multiple loans into one
If you’re looking to lower your interest rate further, select new repayment terms again or further adjust your monthly payments, you can refinance your student loans multiple times.
As for how often you can refinance student loans, there’s really no limit. But in reality, there’s no point if you aren’t going to benefit in some way.
6 reasons to refinance student loans multiple times
Here are a few times you might want to consider refinancing your student loans again.
Interest rates have dropped
If interest rates have gone down, you might benefit from refinancing your student loans again. Lenders set their rates along with the market rate, so keep an eye on current rates to see if you could save.
Even lowering your rate a small amount could save you hundreds or even thousands of dollars on your debt, especially if you have a large loan.
You want to lock in a fixed rate
Refinancing again during a low-rate environment could also be a good way to lock in a fixed rate before rates rise again.
If you have a variable rate but are worried about it rising in the future, it could be savvy to refinance again and choose a fixed rate while rates are low.
Your credit has improved or income has increased
To get the best rates and terms, you need to have strong credit and a steady income. If your credit or income situation has improved since the last time you refinanced, you might qualify for an even better interest rate than you did the first time around.
It could be worth applying — or at least checking your offers online with an instant rate quote — to see if you can get a better deal.
You want to select new repayment terms
When you refinance, you get to choose new repayment terms and as a result, adjust your monthly payments.
You could choose a short term to get out of debt fast, or a long term to lower your monthly bills. Just be careful about adding too many years to your debt, as you’ll pay more interest over the life of your loan.
If you’re looking to restructure your debt with new terms, refinancing more than once could be one way to accomplish this.
You want to transfer your loan into your child’s name
Maybe you borrowed student loans on your child’s behalf and already refinanced them for lower rates. But now you’re ready to wash your hands of the debt and let your child assume repayment.
If your child can qualify on their own, they could refinance your loan in their own name.
You want to switch to a new lender
When it comes to student loan refinancing, each lender is different. Some offer better rates than others, and some have perks such as career coaching or deferment if you go back to school.
If you’re eager to switch to a new lender, you might choose to refinance your student loans again with a new lender. You might even get a bonus of up to $200 if you successfully qualify.
That said, you can refinance a student loan with the same lender if you’re satisfied with your customer experience. Unless you can get a better deal elsewhere, there might be no reason to switch.
When it could be bad to refinance student loans multiple times
As you can see, you can refinance student loans more than once if you’ll benefit from doing so. But there are a few situations where it could be bad to refinance student loans multiple times, such as the following:
You wouldn’t save any money
If you’re not saving any money by refinancing again, there’s probably not much point to the process.
You have to pay hidden fees
Make sure there are no hidden origination or disbursement fees that would offset the savings of lowering your interest rate. If you have to pay big fees, refinancing again might not be worth it.
You’re worried about resetting your repayment term
When you refinance student loans, you can choose new repayment terms, usually between five and 20 years. But if you refinance again, you have to be careful not to accidentally reset the clock on your repayment.
If you’re already five years into a 10-year term, for instance, choosing a 10-year term again would add five additional years to your debt! This might be advantageous if you’re struggling to keep up with monthly payments and want to lower them.
But if you can afford to stay on track — and don’t want to overspend on interest — be careful not to add years to your student loan repayment terms.
Final thoughts: How often should I refinance student loans?
In the end, everyone’s financial situation is unique, and there’s no one-size-fits-all solution to student loan repayment.
But if interest rates have dropped — or your credit has improved — it could be worth applying for refinancing again to get an even better deal.
As long as you’re not paying hidden fees or accidentally resetting the clock on repayment, it’s usually not bad to refinance student loans multiple times.
For more on the process, head to this guide to learn how to refinance student loans, step by step.
Want better rates? Here are the best banks to refinance student loans:
| Variable rates start at... | Fixed rates start at... | Repayment terms | Welcome bonus | Check your rates | |
|---|---|---|---|---|---|
 | 4.54% | 4.49% | 5 - 20 years | $200 | Visit LendKey |
 | 4.99% | 4.47% | 5 - 20 years | $200 | Visit Earnest |
 | 4.22% | 3.97% | 5, 7, 10, 15, and 20 years | $120 | Visit Laurel Road |
 | 4.53% | 4.40% | 5 - 20 years | $100 or $200, depending on the amount you refinance | Visit Credible |
 | 5.09% | 4.74% | 5, 7, 10, 15, and 20 years | $100 | Visit SoFi |
 | 4.53% | 4.83% | 5, 7, 10, 15, and 20 years | $100 | Visit ELFI |