While opting for a lower interest rate is often a good reason for people to refinance, it doesn't come without drawbacks for certain types of loans.  If you have federal loans, be careful before choosing to refinance them. You will lose key protections that come with federal loans if you refinance. For instance, you won't be eligible for the COVID-19-related payment pause and federal loan relief programs like Public Service Loan Forgiveness.  You also won't be eligible for specific repayment options like income-driven repayment plans, which take your specific income and family size into account when determining monthly payments.