Federal Student Loan Decision Hub
Your federal loans might cost more than you think
Refinancing1 isn't right for everyone. But if you're not actively using forgiveness or income-driven repayment, you could be leaving thousands2 on the table—let's take a look.
Fixed
Variable
( including 0.25%
discount3 )
Fixed
Variable
( including 0.25%
discount3 )
What's Happening Right Now
The federal loan landscape just got a lot more complicated
Three major developments have reshaped repayment for millions of borrowers.
We're tracking all of it so you can make a decision based on what's actually true today.
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SAVE is officially over: 7.5 million borrowers need a new plan
The Department of Education has ended SAVE, and borrowers must choose a new repayment plan. If you were on SAVE, your payment, forgiveness timeline, and budget have all changed.
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A new income-driven repayment plan will cost most borrowers more overall
The Repayment Assistance Plan launches July 1, 2026 as the replacement IDR option. Payments are set at 1–10% of adjusted gross income. But with a 30-year forgiveness timeline, most borrowers will pay more interest than under SAVE.
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OBBB was signed into law July 4, 2025, with major changes hitting July 1, 2026
The One Big Beautiful Bill eliminates most income-driven repayment plans, caps borrowing limits, and phases out Grad PLUS loans. The repayment landscape you planned around no longer exists.
Which Borrower Are You?
Your situation changes everything. See what we recommend:
Private sector, stable income
You're a strong candidate for refinancing
If you're in the private sector and not pursuing forgiveness, federal protections like PSLF don't apply to you. Income-driven repayment programs were designed for borrowers with income volatility—and they often cost more in total interest over time.
According to a 2025 Earnest study, only 1 in 10 borrowers4 who could save money by refinancing actually do. You're likely paying a higher interest rate than you need to.
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Pursuing PSLF at a government or nonprofit job
Do not refinance—protect your PSLF progress
If you're working toward Public Service Loan Forgiveness and making qualifying payments, refinancing to a private loan disqualifies you from the program entirely. PSLF forgives your remaining balance after 120 qualifying payments—that's a significant benefit worth protecting.
We'll be honest: Earnest isn't the right choice here. If your situation changes, we'll be here.
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Unsure about my plans
It depends—let's look closer
Career uncertainty is real, and it's worth considering. But many borrowers overestimate their need for income-driven repayment or forgiveness—especially those with stable income today.
If you're not actively enrolled in IDR and not counting on forgiveness, the "just in case" cost of staying federal may be thousands in extra interest. Use our decision guide to walk through the questions that actually matter.
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Decision Guide
Answer 3 questions. Get clarity.
Planning to qualify for PSLF?
If you work for a government agency, nonprofit, or qualifying public service employer and are making qualifying payments—refinancing would forfeit your PSLF eligibility entirely. Stay federal.
Expecting stable or growing income?
Income-driven repayment caps payments as a percentage of your income. If your income is variable or uncertain, that flexibility has real value. If it's stable, you likely don't need it.
Relying on IDR to make payments affordable?
If you're on standard repayment and can afford your payments, you're not using the protections people fear losing. If you don't expect to need those safety nets, refinancing could lower your rate.
Transparent Comparison
Federal vs. refinancing: the honest breakdown
Feature
Federal loans
Set by Congress (6.39–8.94% in 2025)
Earnest Refinancing
Based on your credit
Federal loans
✓ Eligible
Earnest Refinancing
✗ Not eligible
Federal loans
✓ Available
(SAVE eliminated; RAP launching July 2026)
Earnest Refinancing
✗ Not available
Federal loans
Limited options
Earnest Refinancing
✓ Set your exact monthly amount
Federal loans
✗ Not available
Earnest Refinancing
✓ Once per year5
Federal loans
✗ Fees apply
Earnest Refinancing
✓ No fees, ever
Federal loans
✓ None
Earnest Refinancing
✓ None
Feature | Federal loans | Earnest Refinancing |
Interest rate | Set by Congress (6.39–8.94% in 2025) | Based on your credit |
PSLF eligibility | ✓ Eligible | ✗ Not eligible |
Income-driven repayment | ✓ Available | ✗ Not available |
Payment flexibility | Limited options | ✓ Set your exact monthly amount |
Skip-a-payment | ✗ Not available | ✓ Once per year5 |
Origination fees | ✗ Fees apply | ✓ No fees, ever |
Prepayment penalty | ✓ None | ✓ None |
The right choice depends entirely on your situation.
This table is designed to inform, not to push.
Still weighing your options? Read our full guide on private vs. federal student loans →
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Common Misconceptions
What's actually true about refinancing federal loans
Fear of losing federal protections keeps many borrowers paying more than they need to—even when those protections may not apply to them.
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How Earnest Compares
How refinancing with Earnest helps you
Feature
Earnest
✓ Up to 180 payment options
SoFi
5 standard payment options available
Citizens
5 standard payment options available
Earnest
✓
SoFi
✓
Citizens
✗
Earnest
✓
SoFi
✗
Citizens
✗
Earnest
✓ Up to 9 months6
SoFi
6 months
Citizens
6 months
Feature | Earnest | SoFi | Citizens |
Customizable terms | ✓ Up to 180 payment options | 5 standard payment options available | 5 standard payment options available |
No late fees | ✓ | ✓ | ✗ |
1 payment skip per year | ✓ | ✗ | ✗ |
Post-graduation grace period | ✓ Up to 9 months6 | 6 months | 6 months |
The right choice depends entirely on your situation.
This table is designed to inform, not to push.
Still weighing your options? Read our full guide on private vs. federal student loans →
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$26 billion
Total Student
Loans Refinanced
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Excellent — 4.6 out of 5
420,000+
Happy Clients
Earned
What Borrowers Say
Real people. Real savings. Real decisions.
Disclosures
1 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.
2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.
3 Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 3.99% to 9.99% (4.24% - 10.24% without Auto Pay discount). Variable annual percentage rates (APR) range from 5.88% to 9.99% (6.13% - 10.24% without Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, MS, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and requires selection of our shortest term offered and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in Auto Pay is not required as a condition for approval.
4 This claim is based on analysis combining publicly available data and proprietary underwriting models. We applied our proprietary data and underwriting criteria to estimate the portion of borrowers who are credit-eligible and could achieve savings through refinancing. Actual savings and eligibility may vary based on individual circumstances, creditworthiness, and current loan terms. This analysis reflects market conditions as of 2025 and is subject to change.
5 Earnest clients may skip a payment through a one, one-month forbearance during a 12 month period. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement.
Interest will not be capitalized on loans originated to Michigan residents under the Regulatory Loan Act of 1963. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
6 Earnest will match up to nine months of your current grace period from your refinance date, or until your original grace period end date (whichever occurs first). Not available with the Principal and Interest Repayment plan while in school. Proof of grace and income verification required.