Want To Refinance Your Student Loan Again? Here’s All You Need To Know

Want To Refinance Your Student Loan  Again? Here’s All You Need To Know

If you’re among the 44.7 million Americans living with the burden of student loan debt, you might have considered refinancing your loan. After all, forking out hundreds of dollars in payments to pay off your hefty loan—average student debt amounts to $37,172—is not an ideal situation to live in.

As your debt continues to rack up and you come dangerously close to defaulting on your monthly payments, refinancing may seem like the best opportunity. By having a private lender pay off your loan and give you a new loan in place of it, you essentially get to start over with more favorable terms.

However, unstable personal finances or changing life circumstances might leave you in a precarious condition to repay your loans. Since refinancing was a good idea the first time around, you might be considering it again.

Can you refinance your student loans again?

The simple answer is yes.

Student loans can be refinanced as many times as you like until you’re able to pay off your loan completely.

Refinancing your student loans gives you the chance to get better terms working with a private lender. Whether you have private or federal loans, you can refinance them through the competitive private refinancing market.

According to Forbes, student loans have reached an astonishing $1.6 trillion, as of this year. This is an indication that people are struggling to repay their student debt and turn to alternative financing options as a result. That’s where refinancing comes in.

A man using his laptop to research about loan refinancing

Why is refinancing your loans again a good idea?

People choose to refinance their loans for several reasons, from changing their loan terms and duration to lowering the interest rate. Opting for it allows you to pay off your loan quicker and maximize your benefits.

Refinancing isn’t forever. Just because you’ve gone down that route once doesn’t mean you can’t do it again. If the financial environment has recently changed or you find a lender who’s offering your terms, it makes sense to opt for refinancing once again.

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Here are some of the benefits of refinancing your loans again:

No origination fee

This is an upfront fee you have to pay the lender when you take out a new loan, covering the cost of processing. However, many private lenders don’t charge an origination fee when you initiate the loan. This means you can refinance your loans as many times as you like until you pay off the entire amount of the loan.

No time

Most lenders let you refinance your loans soon after you’ve refinanced it once already. Technically, there’s no waiting time between two refinances, which means you can quickly switch from one loan to another one with favorable terms.

However, some lenders may make you wait six months after your most recent refinance to ensure it’s the most financially viable option for both of you.


The reason people choose to refinance their loans is to avail the savings it offers. The financial climate can change a lot in a few years and the loan terms you once agreed to may not seem as favorable later.

Refinancing lets you to get a new loan with a shorter repayment term and lower interest rates, something that’ll benefit you in the long-term. This is the most appealing reason people opt for refinancing—even more than once—since it saves you money over the life of the loan.

Close-up of hands doing calculations

Find better terms

Since there’s no limit to refinancing, you have the chance to find better, more suitable terms in the competitive market. Even if you settle on terms that aren’t favorable for you in the long term, you can find other lenders who meet your requirements.

What should you consider before refinancing again?

If you’re looking to snag the current low interest rates, enjoy lower monthly payments or reduce your payment term, refinancing is the solution for you. Just because you’ve taken advantage of the benefits of refinancing once doesn’t mean you can’t opt for it again, as long as you consider these factors:

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The type of interest rate

There are two types of interest rates you can choose between: variable and fixed. The former allows you to pay off your loans faster and take advantage of falling interest rates, while the latter is a good option if you’re looking for predictable long-term monthly payments.

You have the chance to opt for a different interest type when you refinance your loans. So if you want to take enjoy the benefits of unprecedented lower interest rates, refinancing your loans again is the best chance to do so.

Your credit score

Credit scores are vital for any type of borrowing—whether you’re taking out your initial student loans or refinancing for the third time. With the help of this 3-digit number, lenders can determine whether you’ll be a viable borrower or not.

If there’s been an increase in your credit score since the last time you refinanced, you might want to consider refinancing again to take advantage of the lower interest and better terms you’re eligible for.

A woman researching on her laptop and making notes

Staying with the same lender

Just because you refinanced your loans with a lender once doesn’t mean you have to stay with them. With so many private lenders offering varying benefits, it only makes sense to review all your options before you refinance again.

Were you unhappy with the payment options? Is another lender offering you a lower interest rate? Are there forbearance options? These are all things to consider when finding a lender so you can reap the greatest benefit from your refinanced loan.

Make the right choice

The decision to refinance your loans again can lead to greater financial benefits and peace of mind. Education Loan Finance’s student loan refinancing options offer a variety of features for you to choose from. Their experts can guide you on the best way to refinance your loans again and help you explore all your available options.

About Education Loan Finance

Education Loan Finance is one of the leading providers of student loans, parent loans, and refinancing plans in the U.S. By providing low interest rates and favorable payment plans, ELFI has become a reliable and established lending service of choice for many.



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