You are here: Home / Loans / Private Student Loan Consolidation
Private student loanscannot, in general, be consolidated with federal student loans. The low interest rates onfederal consolidation loansare not available to private education loans. Nevertheless, there are several options for refinancing private education loans.
Since most private education loans do not compete on price, a private consolidationloanis merely replacing one or more private education loans with another. So the main benefit of such a consolidation is obtaining a single monthly payment. Also, since the consolidation resets the term of the loan, this may reduce the monthly payment (at a cost, of course, of increasing the total interest paid over the lifetime of the loan).
However, since the interest rates on private student loans are based on yourcredit score, you may be able to get a lower interest rate through a private consolidation loan if your credit score has improved significantly since you first obtained the loan. For example, if you’ve graduated and now have a good job and have been building a good credit history, your credit score may have improved. If your credit score has increased by 50-100 points or more, you may be able to get a lower interest rate by consolidating your debt with another lender. You can also try talking to the current holder of your loans, to see if they’ll reduce the interest rate on your loans rather than lose your loans to another lender.
Home Equity Loans
Private education loans tend to have interest rates that are in the same ballpark as home equity loans. If your private education loan has a variable interest rate, you might consider using a fixed rate home equity loan to pay off the private education loan, effectively locking in the interest rate.
Education Lenders
The following education lenders will consolidate private education loans. These are private consolidation programs, so the interest rates are dictated by the lender, not the government. There may be additional fees charged for originating these loans.
You should not consolidate your federal student loans together with your private education loans. They should be consolidated separately, as the federal consolidation loans offer superior benefits and lower interest rates for consolidating federal student loans.
When evaluating a private consolidation loan, ask whether the interest rate is fixed or variable, whether there are any fees, and whether there areprepayment penalties.
Featured Consolidation Providers
Credible makes it quick and easy for borrowers to save on their personalized prequalified rates. Credible offers a multi-lender marketplace that enables borrowers to receive competitive refinancing offers from its vetted lenders. Users complete a single form, then receive and compare personalized prequalified rates from numerous lenders and choose which best serves their individual financial needs. Credible is fiercely independent, committed to delivering fair and unbiased solutions in student lending.
5.28% FixedAPR (with autopay)* and 5.28% Variable APR (with autopay) *Read rates and terms at Credible.com
Lenders Include:
- Citizens
- EDvestinU
- ELFI
- INvestEd
- LendKey
- MEFA
- RISLA
Disclosure: Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation may impact the location and order in which the companies (and/or their products) are presented.
Consolidation Providers
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented.
Additional Lenders (listed alphabetically). Check the individual lender websites for programs and rates.
FAQs
Private education loans are not eligible for consolidation. Direct PLUS Loans received by parents to help pay for a dependent student's education cannot be consolidated together with federal student loans that the student received. Learn what to do if you're not sure what kind of loan(s) you have.
Will private consolidated student loans be forgiven? ›
Private student loan forgiveness is rare, but reputable lenders will work with you to stay out of default. Generally speaking, private student loans are only forgiven if the borrower gets permanently disabled or dies.
How to get rid of private student loan debt? ›
Filing for Bankruptcy
You can discharge federal and private student loans in bankruptcy. Bankruptcy is often considered a last resort option because of the impacts it can have on your credit and the costs and time involved in filing for bankruptcy.
What credit score do I need to consolidate private student loans? ›
Consolidating private student loans
You typically need a credit score in at least the high 600s to qualify, and average interest rates for a refinance range from around 5% to more than 9%. Consider private student loan consolidation if you have: Existing private student loans.
Is it a good idea to consolidate private student loans? ›
If you are approved to refinance or consolidate your existing private student loans into a new private loan, the terms of the consolidation loan might allow you to lower your interest rate, lower your monthly payment by extending the length of the repayment term (which may increase the total loan cost), or release a co ...
Can I transfer my private student loan to another lender? ›
However, you can't simply ask a new lender to take on your debt with the same terms. To transfer your student loan, you will need to take out a new one to effectively shift the balance to a new lender. You can consider refinancing or consolidating, as well as a few other options for handling the debt.
Do private student loans get forgiven after 20 years? ›
The federal government's 20-year loan forgiveness programs are part of the income-driven repayment plans they offer. These are special benefits provided to federal student loan borrowers, and aren't available to people with private loans.
Do private student loans go away? ›
The statute of limitations for private student loans generally ranges from three to 10 years, depending on your state.
Can private student loans be refinanced? ›
Ideally, your new loan will have a lower interest rate and better terms than your previous loans, making it easier and more affordable to pay back what you owe. Refinancing is available for both federal and private student loans, although the process may differ depending on which loan types you have.
Does private student loan debt go away after 7 years? ›
Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans will remain on your credit reports — and in your life — until you pay them off.
SHARE
- Your monthly payment may go down, but you may have to pay longer.
- If you have unpaid interest, your principal balance will go up.
- Your new consolidation loan will generally have a new interest rate.
- You can lose credit for your payments toward income-driven repayment (IDR) forgiveness.
We don't offer consolidation or refinancing at this time. We recommend that you consider the impact that these actions may have on your student loan benefits and Total Loan Cost.
Does Sallie Mae allow consolidation loans? ›
Consolidation can simplify your monthly payments between multiple loans by combining everything into one payment. You'll often see this with federal loans via a Direct Consolidation Loan from the Department of Education. But Sallie Mae loans are private and aren't eligible for a Direct Consolidation Loan.
Can I consolidate Sallie Mae loans to federal? ›
Consolidation can simplify your monthly payments between multiple loans by combining everything into one payment. You'll often see this with federal loans via a Direct Consolidation Loan from the Department of Education. But Sallie Mae loans are private and aren't eligible for a Direct Consolidation Loan.
How to transfer a private student loan? ›
How to transfer private student loans to another lender
- Step 1: Identify which loans you want to refinance. ...
- Step 2: Compare student loan refinancing options. ...
- Step 3: Choose a lender, and complete a refinance application. ...
- Step 4: Review the loan offer. ...
- Step 5: Pay off your loans.
