Private student loans cannot generally be consolidated with federal student loans, and the low interest rates on federal consolidation loans are not available to private education loans. Nevertheless, there are several options for refinancing private education loans.
Private student loan consolidation offers unique benefits. The process involves combining private student loans into a single loan, often with a new lender. This simplifies your finances by replacing multiple loans with a single monthly payment. Additionally, it can reduce monthly payment, although this may result in a higher total interest paid over the loan’s lifetime.
Since the interest rates on private student loans are based on your credit score, you may get a lower interest rate through a private consolidation loan, if your credit score has improved significantly since you first obtained the loan. For example, suppose you’ve graduated, now have a good job, and have been building a good credit history. In that case, your credit score may have improved.
If your credit score has increased by 50 to 100 points or more, you may get a lower interest rate by consolidating your debt with another private student loan lender. Contact the current holder of your loans to see if they’ll reduce the interest rate on your loans rather than lose them to another lender.
Home Equity Loans
If your private education loan has a variable interest rate, which means it can fluctuate over time, you might consider an alternative strategy. For instance, if you have a home with significant equity and you’re confident in your ability to repay the loan, using a fixed-rate home equity loan to pay off the private education loan can effectively lock in the interest rate, potentially providing more stability in your loan repayment.
Educational Lenders
Consolidating student loans using an educational lender can be the right option for several reasons. Educational lenders specialize in student loans and often offer specific benefits such as flexible repayment options, competitive interest rates, and tailored services for students and recent graduates.
Consolidating with an educational lender can simplify the loan repayment process by combining multiple loans into a single, more manageable monthly payment. Student loan consolidation can help organize finances and reduce the overall interest paid over the loan’s lifetime. Additionally, educational lenders may offer resources and support to help borrowers better manage their student loan debt.
Featured Consolidation Providers
Credible
Credible makes it quick and easy for borrowers to save on their personalized prequalified rates. Credible offers a multi-lender marketplace that enables borrowers to receive competitive refinancing offers from its vetted lenders. Users complete a single form, then receive and compare personalized prequalified rates from numerous lenders and choose which best serves their individual financial needs. Credible is fiercely independent, committed to delivering fair and unbiased solutions in student lending.
4.84% FixedAPR (with autopay)* and 5.28% Variable APR (with autopay) *Read rates and terms at Credible.com
Lenders Include:
- Citizens
- EDvestinU
- ELFI
- INvestEd
- LendKey
- MEFA
- RISLA
Disclosure: Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation may impact the location and order in which the companies (and/or their products) are presented.
Citizens – Undergraduate Student Loans
Citizens offers student loan options for undergrad, grad students and parents with competitive rates and flexible terms. We also offer these interest rate discounts:
- Loyalty Discount* of 0.25 percentage point interest rate discount if you have a qualifying account with Citizens.
- Automatic Payment Discount* of 0.25 percentage point interest rate discount.
After applying for a Citizens Student Loan™, you may qualify for Multi-Year Approval. If eligible, prior to each academic year, simply log in to your account and request funds with no application and no hit to your credit score.*
Plus, adding a qualified cosigner could increase your likelihood of loan approval and help you borrow more money or get a lower interest rate – meaning lower monthly payments and less interest paid over the life of the loan.*
Our easy application could help get you on the path to funding your education and with more than 40 years’ experience, we’re here to help guide you to the student loan that fits you best. Plus, get your rate in about 2 minutes with no impact to your credit score.*
*https://www.citizensbank.com/promo/student.aspx
Loan
A Citizens Student Loan™ lets you choose from competitive rates and repayment options that give you the freedom to pay back your loan on your schedule – along with a team of Student Lending Advisors to help you through the process.
Limits
Minimum: $1,000
Maximum: Maximum qualified loan amount or the total cost of education, whichever is lower (Maximum loan limit: $225,000 and Aggregate limit: $225,000 applies)
Rates
Fixed rates: 3.99%-15.59% APR (Including all available discounts)*
Variable rates: 5.99%-16.59% APR (Including all available discounts)*
Fees and Terms
No application, origination, or disbursem*nt fees. No prepayment penalty.
Multiple repayment options such as immediate or interest-only payments with Citizens Student Credit Builder™* or deferred repayments
Flexible terms available ranging from: 5, 10, 15-year options.
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented.
Consolidation Providers
- Cedar Education Lending Private Student Loan Consolidation
- Darien Rowayton Bank (DRB)
- Independent Community Bankers of America (ICBA)
- Navy Federal Credit Union
- SoFi Student Loan Refinancing
- Wells Fargo Private Consolidation Loan
Should You Consolidate Your Student Loans?
When considering consolidating your student loans, it is vital to weigh the pros and cons. One key factor to consider is the interest rates offered by the new loan compared to the existing ones, as well as any potential fees associated with consolidation. It is also essential to evaluate the impact on the overall loan repayment term and consider the total amount of interest paid over time.
As for eligibility, private and select federal student loans are typically eligible for consolidation. Eligibility criteria may vary among lenders and programs, and factors such as the type of loan, current financial status, credit score, and employment history may be considered.
It’s advisable to check with potential lenders or loan consolidation programs to determine specific eligibility requirements.
