If you’re a nurse staring down your student loan balance and wondering if there’s a better way forward, you’re not alone. Many nurses ask themselves: Should nurses refinance student loans? It’s a big decision, and like most things in nursing, it depends on a few key factors.
Let’s break down what refinancing actually means, when it’s a smart move (and when it’s not), and what you absolutely need to consider before making the leap.
Table of Contents
What is student loan refinancing?
Student loan refinancing means replacing one or more existing student loans with a brand new loan, ideally at a lower interest rate. This can potentially lower your monthly payment, reduce the amount of interest you pay over time, or both.
Refinancing can be done through a private lender, and it’s available for both federal and private nursing school loans.
📉 Should nurses refinance student loans?
Let’s get straight to the point: It depends on your financial situation. Here are a few questions to help you decide if refinancing is right for you:
- ✅ Do you have stable income and a strong credit score (or a cosigner with one)?
- ✅ Are you not using or planning to use federal loan benefits like PSLF or income-driven repayment?
- ✅ Are your current interest rates high?
- ✅ Do you want a lower monthly payment or to pay off your loans faster?
If you answered yes to most of these, refinancing could be a smart move.
Pros and cons of refinancing nursing school loans
Before diving in, let’s look at the pros and cons clearly.
✅ Pros:
- Lower your interest rate
- Reduce monthly payments
- Save money in the long term
- Combine multiple loans into one (hello, simplicity!)
❌ Cons:
- Lose federal benefits like PSLF, deferment, and income-based repayment
- Private lenders may not be as flexible during financial hardship
- Credit score and income play a big role in your eligibility and rates
🔁 Refinance vs consolidate nursing loans
These terms are often mixed up, but they’re not the same.
Federal Loan Consolidation = Federal Loans Only
Direct Consolidation Loans through the U.S. Department of Education are only available for federal student loans. This includes things like:
- Direct Subsidized or Unsubsidized Loans
- PLUS Loans
- Perkins Loans (if applicable)
- FFEL Loans (if you still have them)
When you consolidate these federal loans, they’re combined into one new federal loan with a weighted average interest rate. It can simplify payments and may help with eligibility for certain repayment plans or loan forgiveness programs.
⚠️ But: You cannot include private loans in a federal Direct Consolidation Loan.
Private Loan Consolidation = Refinancing
If you want to combine private loans (or a mix of private and federal), that’s done through refinancing with a private lender, and it’s technically a different process.
Private refinancing allows you to:
- Combine multiple loans (federal and/or private) into a single private loan
- Potentially lower your interest rate
- Change your loan term
But here’s the tradeoff: Once you refinance a federal loan into a private one, you lose access to federal benefits like income-driven repayment plans, deferment, forbearance, and Public Service Loan Forgiveness.
➡️ TL;DR:
- Federal consolidation = only federal loans
- Private consolidation = refinancing through a lender (like Juno)
👉 If your goal is to lower your interest rate, refinancing is the option to explore. If you’re just trying to simplify your loan payments and keep federal protections, consolidation may be better.
💡 Thinking About Refinancing?
If you’re weighing whether refinancing is the right move, especially to consolidate private loans or get a lower interest rate, my partner Juno has some incredible (and free!) tools to help:
- 🧮 Use Juno’s Refinancing Calculator to see how much you could save based on your current balance, rate, and term. It’s super simple and only takes a minute or two.
- 📘 Want to really understand the refinancing process? Check out Juno’s in-depth refinancing guide. It walks you through the pros and cons, timing, eligibility, and how refinancing could impact your repayment options long-term.
Refinancing can be such a powerful tool! But only if it fits your situation. These resources can help you make a confident, informed decision. And if you choose to refinance, use Juno to get access to way lower than usual interest rates, which could mean a difference of thousands over the life of your loan.
Should nurses refinance student loans if they’re using PSLF?
Short answer: No.
If you’re working toward Public Service Loan Forgiveness (PSLF), which is available to many hospital-based and government-employed nurses, do not refinance your loans with a private lender. Doing so makes you ineligible for forgiveness.
Stick with federal loans and make sure you’re on a qualifying income-driven repayment plan.
💰 Nurse loan interest rates: What’s considered “high”?
If your interest rates are above 6-7%, you might benefit from refinancing, especially if you have good credit. Many refinancing lenders offer lower fixed or variable rates depending on your financial profile.
Even a small decrease (like going from 7% to 5%) can save you thousands over the life of the loan. That’s why it’s worth checking what other options are out there.
👀 My partner Juno just released their 2025–2026 private student loan rates, and they’re some of the lowest available: starting at just 3.47%. For comparison, most private lenders on the open market are currently advertising starting rates closer to 7–8%.
Now what does that actually mean?
Let’s say you borrow $25,000 and repay it over 10 years:
- At 3.47%, you’d pay about $4,616 in total interest
- At 7.00%, you’d pay about $9,834 in interest
That’s $5,200 in savings, just from a better rate.
Juno is free to join, no strings attached, and they negotiate group rates specifically for students. It could literally save you thousands. ➡️ CLICK HERE TO CHECK YOUR RATE ⬅️
🤔 Still unsure if refinancing is right for you?
This decision doesn’t have to be overwhelming. Ask yourself:
- Am I missing out on federal protections I might need?
- Would refinancing reduce my monthly stress (and my monthly bill)?
- Do I have a financial safety net in place (like an emergency fund)?
- Am I planning to stay in nursing long term and pay this off steadily?
Final thoughts on student loan refinancing for nurses
Refinancing isn’t for everyone, but it might be exactly what you need to cut down your stress and save money.
Take your time to research your options, use the tools above, and don’t feel pressured to make a decision overnight. Financial wellness is a journey, not a race, and you’re allowed to take steps at your own pace. And if refinancing gets you one step closer to peace of mind? That’s a win. 💪
🧰 More resources for FreshRNs:
Here’s a quick list of a few tools and guides to help you decide with confidence:
- 🧮 Use Juno’s Refinancing Calculator to see how much you could save based on your current balance, rate, and term. It’s super simple and only takes a minute or two.
- 📘 Check out Juno’s in-depth refinancing guide. It walks you through the pros and cons, timing, eligibility, and how refinancing could impact your repayment options long-term.
- 📚 Want to compare your full repayment picture? You can use our free Nursing School Planner to track interest rates, payoff timelines, and refinance options all in one place. (You can still use it for this even if you’re not currently applying to nursing school!)
- 👩⚕️ Need a refresher on federal vs. private loans? Read: Federal vs. Private Loans for Nursing Students: Pros, Cons & What to Pick
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