Refinance student loan consolidating student loan
While a lower interest rate is good news, your new loan may not come with all the borrower benefits associated with government loans.
By combining your interest rates, you also lose the ability to employ a favorite tactic of financial planners for paying down debt: targeting the most expensive debt, the loan with the highest interest rate, first.
We recommend the lenders above because we thoroughly evaluated them. Can I consolidate private and federal loans together? You can also extend the term of your loan, at the same interest rate.
However, our team also researched other institutions and found some good alternatives for people that want to consider all options before they begin the process of refinancing or consolidating student loans. If you’re concerned about lowering your monthly loan payments, consolidation could be a good option for you.
Borrowers sometimes use the terms “consolidate” and “refinance” interchangeably when talking about their federal loans. You can consolidate but not refinance your federal loans within the federal system—to refinance, you have to go to a private lender.
Consumer advocates caution that there’s a serious downside to moving to a private lender, even though you might get a slightly lower interest rate.