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Where Can I Consolidate My Private Student Loans

Where Can I Consolidate My Private Student Loans?

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Where Can I Consolidate My Private Student Loans: A student loan consolidation takes out several loans and combines them into one new loan. This should save you money by lowering your monthly payment or both.

At the Department of Education, you can combine several government student loans into a single loan. You can also “refinance,” which is another word for trade in several government or private loans for a new private loan. 

It may sound like refinancing and merging are the same thing, but they are not.

You can only consolidate government student loans through the Department of Education. This will not lower your interest rate, but you can extend the term of your loan to lower your monthly payments.

If you go through a private lender, you can refinance both private and federal student debt. When you refinance a federal student loan, it turns into a private loan and can’t be repaid through income-driven repayment or other government programs that forgive loans.

Consolidating private student loans

The interest rate on your private student loans may go down if you refinance or consolidate them. This can save you money. 

The interest rate you are offered will depend on your credit score, income, amount of work experience, and level of education. Most of the time, you need a credit score in the high 600s to be eligible, and the interest rates for refinancing run from about 5% to more than 9%.

Think about consolidating your private student loans if you:

  • Existing private student loans.
  • Credit scores of 690 or better are usually thought of as good or excellent credit.
  • A steady source of income.
  • Even if your income or credit score isn’t great, you can still apply with someone who has better credit.

It is possible to refinance both private and federal student loans, but you might want to wait to do so with federal debts. There are no interest rates on federal student loans right now, and payments will not start again until later this year. 

If you can, you should wait until the student loan payment forbearance ends and any possible loan cancellation and income-driven payback credits are applied before making a payment.

You can use tools to see how your monthly payment would change if you consolidated your federal student loans, refinanced your private student loans, or paid them off based on your income.

How to consolidate private student loans

It’s important to shop around to find the best lenders for refinancing student loans. Give yourself time to look at a number of lenders and get a number of interest rate quotes before making a decision.

1. Look into companies that can help you refinance your student loans. Lenders can give you different kinds of loans for different reasons. Some lenders will, for instance, refinance student loans from other countries. Some lenders may still let you borrow even if you didn’t finish college.

2. Get several deals for interest rates. To get pre-approved, you may need to give some basic information. This won’t usually have an effect on your credit score, though. It’s essential to find the best rate possible.

3. Pick a lender and terms for your loan. Find out if your interest rate is set or variable and how long you have to pay it back. These are important things that affect your total cost and monthly payment. 

4. Fill out the application. Once you fully understand and agree to the loan offer, you will need to officially apply by filling out an application.

If you get the loan, you can sign all the necessary papers and wait for the new lender to pay off your old one. Don’t stop paying your present lender until the refinance is done.

Federal student loan consolidation

One of the best things about federal loan consolidation is that it can bundle several student loan payments into one bill. You don’t have to have good credit, but there’s also no chance of getting a lower interest rate. 

Federal student loan consolidation might be a good idea if you:

  • You have to consolidate your debts to qualify for programs that forgive public service loans, income-based repayment, or other types of aid. This is the case if you have Parent PLUS, Federal Family Education Program, or Perkins loans.
  • Want to make one payment on a government loan but don’t need the payment to be a lot less.
  • Have not paid their college loans on time and want to get back on track.

If you graduate, drop below half-time enrollment, or leave school, you may be able to consolidate your government student loans. 

When you combine, the government pays off your old federal loans and gives you a new direct consolidation loan. The average of your old rates will be used to figure out your new rate, which will be rounded up to the nearest eighth of a percent. For example, if the weighted average is 6.15 percent, your new interest rate will be 6.25 percent.

Your new loan term could be anywhere from 10 to 30 years, depending on how much you still owe on your student loans. Most of the time, you’ll have to start paying back your consolidation loan within 60 days of the first payment.

It’s free to combine your government loans through the Department of Education. Stay away from companies that charge you money to do it for you.

How to consolidate federal loans

To get to the straight consolidation loan application, you need to log in to You only need to fill out the application once, so get the things listed under “What do I need?” ready before you begin, and give yourself 30 minutes to do it.

1. Type in the names of the loans you want to combine and the ones you don’t.

2. Pick a way to pay back the loan. You can get a payback plan based on the amount you still owe or one that is based on your income. Next, if you choose an income-driven plan, you’ll need to fill out a form to ask for the plan.

3. Before you send the form online, read the rules. Keep making payments on your student loans as usual until your servicer tells you that the transfer is complete.

You can get your loans back on track in a few different ways if you are behind on payments. To combine loans that have been declined You’ll have to make three full, on-time monthly payments on the late loan and agree to join a payback plan based on your income.


  1. Student loan consolidation combines multiple loans into a single new loan, potentially lowering monthly payments.
  2. The Department of Education handles consolidation of government student loans, extending the loan term but not lowering interest rates.
  3. Consider consolidation if you have existing private student loans, a credit score of 690 or higher, and a steady income.
  4. Access the straight consolidation loan application on
  5. Provide information on loans to combine and choose a repayment plan based on the amount owed or income.
  6. Read and understand the rules before submitting the online form.
  7. Continue making regular payments until notified by the servicer that the consolidation is complete.

Frequently Asked Questions (FAQs) on Private Student Loans Consolidation:

Q1: What is student loan consolidation?

A1: Student loan consolidation is the process of combining multiple student loans into a single new loan. This can be done for both private and federal student loans.

Q2: Where can I consolidate government student loans?

A2: Government student loans can be consolidated through the Department of Education. This process does not lower interest rates but allows for an extended loan term to reduce monthly payments.

Q3: Can I consolidate private student loans?

A3: Yes, private student loans can be consolidated or refinanced through private lenders. This may result in a lower interest rate based on factors like credit score, income, and education level.

Q4: What factors affect the interest rate when refinancing private student loans?

A4: The interest rate for refinancing private student loans depends on factors such as credit score, income, work experience, and education level. Generally, a credit score in the high 600s is required.

Q5: Should I wait to refinance federal student loans?

A5: It is advisable to wait, especially when federal student loans are under forbearance. Evaluate potential changes in interest rates, loan cancellation, or income-driven repayment before making a decision.

Q6: How can I consolidate federal student loans?

A6: Federal student loans can be consolidated through the Department of Education. Visit, fill out the consolidation loan application, choose loans to combine, select a repayment plan, and submit the form.

Q7: What are the benefits of federal loan consolidation?

A7: Federal loan consolidation bundles multiple payments into one bill, making repayment more manageable. It is suitable for those seeking forgiveness programs or a single payment on government loans.

Q8: How is the interest rate determined in federal loan consolidation?

A8: The new interest rate is determined by the weighted average of the old rates, rounded up to the nearest eighth of a percent.

Q9: Are there fees for federal loan consolidation through the Department of Education?

A9: No, federal loan consolidation through the Department of Education is free. Beware of companies charging fees for this service.

Q10: How do I consolidate private student loans?

A10: To consolidate private student loans, shop around for lenders, obtain multiple interest rate quotes, choose a lender and loan terms, and complete the application process. Continue making payments until the refinance is complete.

Q11: Can I get my loans back on track if I am behind on payments?

A11: Yes, there are options to get loans back on track, including making three on-time monthly payments for declined loans and joining an income-based payback plan.

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