We’ll walk you through some of the key considerations as you decide whether refinancing or consolidating is right for you (there are even situations where you might want to refinance certain loans and/or consolidate others).You have two options: either federal direct consolidation or private student loan refinance.They both combine your loans into one loan, however, there are some key differences.
NOTE: The federal government does not have a student loan refinancing program.
If you refinance your Direct Student Loans or Direct PLUS Loans with a private loan, you will lose the deferment, forbearance, forgiveness, cancellation benefits, and income-driven repayment benefits offered through the Direct Loan Program.
Learn how to apply for a Direct Consolidation Loan, or get additional insights on the Federal Student Aid website. This option allows you to include some or all of your private and/or federal student loans.
Student loan refinance is a great option if you are looking to potentially lower your monthly payment, annual percentage rate, or remove a cosigner (like your parent) from an existing loan.
Private student loan refinance allows you to choose the loan that best suits your needs.