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Now that federal student loan payments have resumed, here’s what to consider before refinancing

Federal student loan borrowers don’t need to refinance to get a slightly better rate, Kantrowitz pointed out: Most student loan servicers will offer a 0.25% interest rate deduction when you sign up for automatic payments.

It can’t hurt for people who already have private student loans to see if they can pick up a better rate, Mayotte said. If your current interest rate on your private student loan is, say, 12%, you may be able to refinance for a rate around 7%, she said, if you have a good credit profile.