US Tax Tools

Student Loan Refinance Tax Impact Calculator

Refinancing can cut your rate — but if you're leaving federal loans, you lose IDR, PSLF, and deferment protections. Plus your student loan interest deduction may change.

Current Loan
Refinance Offer

Current Payment

$382

New Payment

$395

Monthly Savings

-$13
Tax & Protection Impact

Interest Deduction Change

−$52

After-Tax Annual Savings

-$167

Refinancing federal loans means losing:

  • Losing IDR income-driven repayment: payments tied to income
  • Losing PSLF: public service loan forgiveness after 120 payments
  • Losing federal deferment/forbearance: mandatory relief during economic hardship
  • Losing death/disability discharge: federal loans are discharged upon total disability or death

Related Calculators

Last updated May 8, 2026 Tax year 2026

Data sources: IRC §221 — student loan interest deduction, IRS Pub 970, 34 CFR §685 — federal loan programs

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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