Best Student Loan Refinancing and Consolidation
Student loan debt can be overwhelming, especially if you’re dealing with multiple lenders. We looked at the pros and cons of consolidation and refinancing and researched 13 companies that offer these services — some of which have been rated and reviewed by consumers — to help you make an informed financial decision. Read our guide to discover the best student loan refinancing companies for you.
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Student Loan Refi and Consolidation Companies | ||||||
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Student loan refinancing marketplace with an online application process. A $5,000 minimum for refinancing is common. Terms vary from company to company. No application or origination fees. No prepayment penalties. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Select from a variety of student loan options. Available for international students. Variable rates 2.99% to 13.99% APR; fixed rates 5.49% to 14.99%. No fees. Cash rewards available for good grades. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Provides loans for undergraduates, graduates and parents. Career training and trade school loans available. Undergraduate rates start at 3.24%, including a discount for automatic payments. Refinances up to $300,000. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers private and co-signed student loans plus refinancing. Has programs for MBA, medical and law school funding. Not available for international students or associate degree seekers. Requires a credit score of 650 or above. | ![]() | Get Started | ||||
Works with over 13,000 local banks and credit unions to provide private student loans and refinancing. Charges interest rates starting at 1.49% for variable-rate loans and 3.99% for fixed-rate loans. No origination fees. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers undergraduate, graduate, MBA, dental and medical student loans. Refinancing loans are also available. Undergraduate rates start at 3.74% APR. Automatic payment discount. Five-, 10- and 15-year loan options available. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers federal loan consolidation assistance by helping former students through the application process and by selecting the best repayment or loan forgiveness plans for their unique situation. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Free online resource for student loan information and guidance. Refinancing, prepayment and loan forgiveness calculators available. Tools designed to help users get better student loan rates. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers private student loans and student loan refinancing. No loan maximums. Multiple repayment term lengths. Interest rate discounts available. Doesn’t charge fees. Unemployment protection available. | ![]() | |||||
Helps find personalized rates from multiple lenders in minutes. Over 100 lending partners. Free to search and view loan and refinancing options. Inquiries don’t impact credit score. Allows co-signers. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Services federal student loans. Manages your loan status and payments. Multiple repayment plans available. Helps with loan consolidation. Also offers scholarships, grants and college advising services. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Specializes in personal and business banking. Offers mobile and online services for checking and savings accounts. Home loans, student loans and refinancing, auto loans, investing and retirement services available. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Read Author Review | Nonprofit state authority offering student loan refinancing to borrowers nationwide. Qualifying loans include federal loans, private loans and parent PLUS loans. Annual income of $40,000 required to qualify. $7,500 minimum loan. | ![]() | Chat with a ConsumerAffairs decision guide Live agent |
Student loan consolidation vs. refinancing
You have a few options when it comes to managing your student loan debt, including consolidation and refinancing. If you’ve done any research on the topic, you know firsthand how confusing it can be to understand the differences between the two and which option is right for you. Our goal is to break it down and make it as simple as possible for you to make an informed decision.
Simply put, consolidation is the act of combining multiple loans into a single loan with one lender and one monthly payment. Refinancing offers many of the same benefits, but it also allows you to save money through improving your interest rate and/or payment terms.
Let’s take a deeper dive into your options and highlight some of the most common terms you’ll see.
Federal loan consolidation
If you have government-issued student loans like Stafford loans or Perkins loans, you have the option to do loan consolidation through the federal government with a Federal Direct Consolidation Loan. These consolidation loans take all of your government-issued student loans and combine them into one new loan.
Only federal student loans qualify for this program. You cannot consolidate private student loans via a Federal Direct Consolidation Loan.
The new loan’s interest rate will be a weighted average of the loans you’re consolidating. For example, if you’re consolidating two equal federal loans, one with an 8% interest rate and one with a 6% interest rate, the interest rate on your new, consolidated loan will be 7%. However, things get more complicated when your loans aren’t the same size.
Here’s an example of how to calculate the consolidated interest rate of unequal loans. Let’s say you have a total student loan debt of $100,000 across two loans — one for $75,000 and one for $25,000. First, divide the total balance owed on each loan (including interest and principal) by your overall amount of student loan debt. Next, multiply that value by the loan’s interest rate.
Loan A ($75,000 at 7% interest)
- $75,000 / 100,000 = 0.75
- 0.75 x 7 [interest rate] = 5.25
Loan B ($25,000 at 5% interest)
- $25,000 / $100,000 = 0.25
- 0.25 x 5 [interest rate] = 1.25
Add together the result for each loan (rounding up to the nearest 1/8th of a percent) to get the interest rate of your new loan.
So, your federal consolidation loan would have an interest rate of 6.5%.
Private loan consolidation
Private loan consolidation is the act of consolidating your student loans through a private lender. Both federal and private student loans can be consolidated through a private lender. However, if you choose to consolidate your federal loans with a private lender, you will lose any federal borrower protections you currently have on your government-issued student loans. These include:
- Deferment and forbearance
- Income-driven payment plans, like PAYE (pay as you earn)
- Other loan forgiveness programs, like government plans for public service workers and teachers
There is no forgiveness for private loans.
Private loan consolidation is also where the terminology can get tricky. Through private loan consolidation, you also have the opportunity to refinance the loans you’re consolidating. Some sources online may use these terms interchangeably and make it more complicated than it needs to be.
Consolidating is the act of turning multiple loans into one loan; refinancing is done to get a better interest rate or loan terms. They can be done separately or together.
Student loan refinancing
With student loan refinancing, you will take out a new loan and use it to pay off your existing student loan(s). If you have multiple loans, this part of the process is essentially loan consolidation. What makes refinancing different is that through refinancing you can qualify for a new, lower interest rate and/or negotiate new loan terms. Student loan refinancing is ideal for those with good credit, as those with higher scores are likely to save more money by qualifying for the lowest available interest rates.
Student loan refinancing is only available through private lenders. So, if you want to refinance your government-issued loans, you will have to do it through a private lender and lose all of the federal protection benefits mentioned above.
Federal student loan consolidation | Private student loan consolidation | Student loan refinancing | |
Qualifying loans | Federal loans | Private and federal loans | Private and federal loans |
Purpose | Combine multiple loans into one loan | Combine multiple loans into one loan | Reduce interest rate and combine multiple loans into one loan |
Will I save money? | — | Maybe | |
Will I lower my interest rate? | — | Maybe | |
Will I maintain federal borrower protections? | — | — |
Federal student loan consolidation | Federal loans | Combine multiple loans into one loan | — | — | |
Private student loan consolidation | Private and federal loans | Combine multiple loans into one loan | Maybe | Maybe | — |
Student loan refinancing | Private and federal loans | Reduce interest rate and combine multiple loans into one loan | — |
How to consolidate student loans
Consolidating federal student loans can be done online with a guided application and should take about 30 minutes to complete.
To consolidate your federal student loans:
- Go to studentloans.gov and complete the Direct Consolidation Loan Application. You will need to create a Federal Student Aid (FSA) ID if you do not already have one.
- Select which loans you want to consolidate.
- Choose your repayment plan. You’ll have the option to select a time-based repayment plan or income-based repayment plan.
After you complete the application, you should hear back within 30 to 60 days. You’ll need to keep making your regular student loan payments as scheduled while you wait.
Consolidating can also be done through private lenders, but processes for that vary by lender.
Pros and cons of consolidating student loans
There are both positive and negative aspects to consolidating your student loans.
Benefits of consolidating student loans
- One payment: Make your life easier with only one bill to pay each month.
- Fixed loan rate: While there are pros and cons to both fixed and variable interest rates, having a fixed rate means you always know what to expect and your payment will stay consistent over the life of the loan.
- Adjust your loan terms: When you consolidate your loans, you’ll have the option to select an income-based or time-based repayment plan. Depending on which you select, you may be able to lower your payments by increasing the length of your loan term.
- No credit check: Unlike refinancing, consolidating your federal student loans requires no credit check or prerequisite.
Downsides of consolidating student loans
- You won’t necessarily save money: Federal loan consolidation will not save you money. It simply makes the repayment process easier by combining loans. The interest you’ve accrued so far will also be added to your principal balance, which may mean higher payments. Private loan consolidation (with refinancing) may save you money, though.
- You won’t necessarily get a better interest rate: With federal consolidation loans, your interest rate will be set using a weighted average, meaning you will pay in the same interest you would have before consolidating.
- You may pay more: The option for a longer repayment term means lower monthly payments, but it also means you pay more in interest over time.
Should I consolidate my student loans?
We recommend looking into consolidating your student loans if any of the following are true:
- You are satisfied with the current terms of your loans and want a simplified repayment method
- You need the benefit of an income-based repayment plan (these are unique to federal student loans and federal student loan consolidation)
- You want to get out of default on your current student loans
- You want to become eligible for the Public Service Loan Forgiveness Program (PSLF)
Lowering your monthly payment through consolidation only can also be a good option if you’re struggling to make your current monthly payments. However, it will lengthen the loan’s term, meaning you’ll pay more in interest.
If you’re trying to decide when to consolidate student loans, be sure to weigh your options and decide if lowering your monthly payments will be best for you in the long run. You may want to simplify multiple payments into a single, monthly fee by consolidating your student loans without choosing to lengthen your repayment term.
How to refinance student loans
Unlike with federal student loan consolidation, refinancing through a private lender means you have options. You’ll want to shop around and get information from multiple lenders to determine which rates work best for you.
If you think you’ll be able to pay off the loan quickly, you might want to select a variable interest rate instead of a fixed interest rate. Variable interest rates are tied to an index rate and can change as often as each month, while a fixed rate is locked in for the length of the loan. With a variable rate, if the index rates go down, your interest rate goes down with it. However, this means the flip side is also true, and your interest rate can go up. A variable interest rate can save you money, but a fixed interest rate is a safer option.
To refinance your student loans:
- Get quotes from multiple lenders.
- Select a lender.
- Gather important assets. To apply, you’ll need a government-issued ID, proof of citizenship, proof of income and official statements from all of the federal and private student loans you want to refinance.
- Select your loan term. Decide if you’d prefer a variable or fixed interest rate and compare the cost benefits of paying off your loans with different repayment terms. For example, try comparing a five-year repayment plan with a 15-year repayment term.
You’ll continue to pay your student loans while you wait for approval.
Pros and cons of refinancing student loans
There are both positive and negative aspects to refinancing your student loans.
Benefits of student loan refinancing
- You’ll save money: Perhaps the biggest benefit of refinancing your student loans is the option to get a new, lower interest rate. This has the potential to save you quite a bit of money over the length of your loan.
- Variable or fixed rates available: Refinancing gives you the option to select a fixed or variable interest rate. This is unlike federal loan consolidation, where you get a predetermined fixed interest rate.
- Adjust payment terms: You’ll have the opportunity to change the term of your loan, either by shortening or lengthening.
- Choose your lender: Going the private lender route means who you work with is 100% up to you.
- Enjoy the benefits of consolidation: While you can choose to refinance a single loan, refinancing your student loans usually includes consolidating multiple loans into one. This means you get the same benefits of consolidation while enjoying the better interest rates and terms that come with refinancing.
Downsides of student loan refinancing
- Lose federal borrower protections: By refinancing federal student loans with a private lender, you will lose the ability to defer your loans or qualify for student loan forgiveness.
- There may be fees: When you’re shopping around for a lender, be sure to ask if there are any origination fees or other costs associated with the loan.
- You may not save as much as you want: While most people save money through refinancing, adjusting the length of your payment term can mean you pay more if you’re not careful.
- Your credit score matters: Refinancing requires a credit check, and the best interest rates will go to those with higher scores.
Should I refinance my student loans?
If you have good credit and are looking for ways to save money on your student loans, we recommend looking into refinancing. Refinancing is good for those with a regular, steady income who do not anticipate needing an income-based repayment program through the government. Refinancing gives you a lot more say over the terms and conditions of your loans, including getting an ideal interest rate and customizing your repayment terms. For the right person, refinancing can be a good, money-saving choice.
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Student loan refinancing and consolidation reviews

EduLoan Docs helps former students pay off federal student loan debt. They have services that will help you consolidate your loan debt, help you with loan forgiveness and assist you in preparing the documents to enroll in common programs like Standard and Graduated repayment plans, as well as income-based repayment. EduLoan Docs helps student loan borrowers enroll into several different loan forgiveness programs. If you are a teacher, work in public service or are unable to work due to a disability, EduLoan docs can see if you qualify for total loan forgiveness. EduLoan Docs guarantees that you can find a consolidation and repayment plan, or you get your money back.

Credible partners with multiple lenders to give consumers the opportunity to receive competitive student loan refinancing solutions. Their online portal helps students determine the best options for refinancing their student loan debt by comparing loan offers online for free. Putting information from a variety of reputable private lenders in one place, Credible brings transparency to the student loan selection process. Credible offers refinancing options for both federal and private loans including Parent PLUS loans. The company presents a list of lending solutions with accompanying interest rates from multiple lenders. The information includes total repayment amount, APR and monthly payment amounts so refinancers can accurately compare offers. Multiple rates from a variety of lenders enable borrowers to select the best combination of terms and rates to meet their needs. The Credible blog provides useful articles related to a variety of lending, borrowing, interest rates, college funding and other related topics.

Student Loan Hero was created by a former indebted graduate who was motivated to provide an unbiased solution to help other graduates manage, organize and repay their loans. Student Loan Hero is a portal for access to a variety of student loan refinancing companies. The site lists interest rates, loan types, terms and eligibility requirements for the specific refinancing companies and lenders. Student Loan Hero helps borrowers understand their loans and make smart repayment decisions. Customers receive an in-depth student loan summary and financial analysis. Repayment plans are customized to fit the client. Student Loan Hero offers advice on federal and private loan repayments. The site offers several calculators, such as student loan pre-payment, student loan comparison, and student loan payoff versus investing so consumers can make informed decisions that positively impact their financial future.

Citizens Bank is part of Citizens Financial Group, one of the oldest and largest financial services firms in the United States. Included in their portfolio of offerings, Citizens Bank provides a student loan refinancing product for both private and federal student loans. Citizens Bank promises low, competitive fixed and variable interest rates. Their product doesn’t have any application, origination or disbursement fees or a prepayment penalty. Citizens also offers loyalty and automatic payment discounts. A loan calculator is available to compare rates and examine future payment scenarios. Citizens offers a FAQ section and additional banking and borrowing related articles.

Earnest claims to offer better refinancing rates through data analysis. The company uses a data-driven evaluation of the consumer’s complete financial profile to give qualified borrowers lower, more personalized interest rates than those available through traditional lenders. Loan rates are disclosed after a completing a quick questionnaire. Their Precision Pricing keeps loan payments low, regardless of the loan's term. Earnest services the loan for the entire life of the loan with no third party involvement. It’s easy for consumers to adjust their payments and due dates. Earnest promises additional strategies for faster loan repayment without fees. Earnest’s blog covers a range of student loan repayment questions as does their comprehensive FAQ section. Their iPhone app enables consumers to manage their loan on the go. Requirements include U.S. citizenship, debt from a Title IV accredited school, graduation from school, employment and status as primary borrower.

The Rhode Island Student Loan Authority has been providing affordable higher-education solutions for students since 1981. RISLA offers a path to refinance existing private and federal education loans and lower interest rates and payments. The organization offers an instant credit decision, and you do not have to be a resident of Rhode Island to qualify for their fixed rate refinancing loan product. Their ‘Rates and Fees’ chart clearly outlines interest rates, terms and estimated monthly payments, and RISLA offers a 0.25% interest rate discount with auto deposit.
- Services: Student loan refinancing
- Loan types refinanced: Private and federal student loans
- Minimum loan amount: $7,500
- Loan terms: 5, 10 or 15 years
- Loan rates: 3.49% APR - 8.14% APR fixed, variable rates not available
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.
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