Refinancing student loans involves replacing your existing education loans with a brand new loan from a private lender, ideally at a lower interest rate. To start, compare rates from multiple lenders and submit an application showing proof of income and a good credit score. If approved, the new lender pays off your current student loans, leaving you with one single monthly payment. Refinancing federal student loans will cause you to lose government benefits like income driven repayment plans and loan forgiveness options.