|Direct Student Loan Consolidation||Student Loan Refinancing|
|Are federal loans eligible?|
Many private lenders only refinance private loans, but SoFi accepts both federal and private loans.
|Are private eligible?|
|Is a credit check required|
|Can I lower my interest rate?|
Your interest rate is simply the weighted average of the original loans’ rates.
Your interest rate will be a new (hopefully lower) rate based on your credit score and other relevant finance data.
|Will I save money?|
Generally, you won’t see any savings since you are not getting a new interest rate. If you extend your term, you may see your monthly payment decrease, but your total interest payment will increase.
Reducing interest rate can lower total interest costs and may lower monthly payments, depending on the term you choose.
|Will I get one bill?|
Refinancing your student loans sounds great. But it's not for everyone.
Consolidating student loans via refinancing is best for people whose financial position - in terms of employment, cash flow, and credit - has improved since they graduated from school. People who are working in the public sector or taking advantage of federal debt relief programs such as income-based repayment or public service forgiveness may not want to refinance, as these programs do not transfer to private refinance loans.