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Consolidating federal and private student loans together

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There are two types of student loan consolidation: Private consolidation is often referred to as refinancing.

Private student loans cannot, in...

Private student loan consolidation, or refinancing, means replacing multiple student loans — private, federal or a combination of the two — with a single, new, private loan. Your financial history Consolidating federal and private student loans together including your credit score, income, job history and educational background — will dictate your new interest rate when you refinance.

Consolidating your student loans can...

Refinancing federal loans into a private loan means losing consumer protections specific to federal loans. Those include the option to tie payments to income and get loans forgiven if you work for the government or a nonprofit.

Like Consolidating federal and private student loans together federal government, private companies offer the option to consolidate multiple student loans into one. But unlike the federal government, they can consolidate both federal and private loans. The goal with this process is not only to get the ease of a single payment, but to receive a lower interest rate based on your financial history.

Consider federal consolidation if you:.

Student loan consolidation vs. refinancing

When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan. If the average comes to 6. Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student Consolidating federal and private student loans together balance, among other factors.

Fortunately, we've highlighted the six...

You can sign up for free on studentloans. NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are Consolidating federal and private student loans together partners. We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Student loan consolidation Student loan refinancing What does it do?

No Yes Can I save money? Consolidation may lower your payments by extending the loan term, but your interest cost will increase Yes Can I use federal loan protections, repayment options and forgiveness programs?

Can you consolidate private and...

Yes No Will I pay just one monthly bill? How to use income-driven repayment plans.

Learn how to consolidate your...

Consolidation may lower your payments by Consolidating federal and private student loans together the loan term, but your interest cost will increase. Can I use federal loan protections, repayment options and forgiveness programs?

Ready to compare all your student loan refinancing options?

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