A student loan refinance allows a student to recreate their loan into one that is more convenient, and more affordable, and generally more beneficial. Depending on how the student goes about receiving a refinance, this may involve a different lender or the same lender who originally financed their loan. Regardless, the loan will be given an entirely different package, including new terms and contracts that must be agreed upon. In terms of its advantages, a refinance can grant lower interest, shorter terms, and smaller monthly payments. The most common rationale behind such a refinance is to lower the costs due to affordability reasons. Through a similar option, called loan consolidation, a student can also adjust their loans by combining them into a single loan.