GenMen Archives

Jun

2025

How and When to Combine Federal Student Loans & Private Loans

By Nancy Bilyeau | Fresh Out of School, Student Loans, student_loan | No Comments

One of the biggest student loan myths is that borrowers can’t combine federal student loans and private student loans into one refinanced loan.

It’s understandable why people may think that, since this wasn’t always an option. And consolidation through the Department of Education is only available for federal student loans.

But now you can choose to combine federal and private loans. So it’s important to learn whether combining them is right for you, and if it is, how to consolidate private and federal student loans.

Table of Contents

Can I Consolidate Federal and Private Student Loans?
Steps to Consolidating Federal and Private Loans
Federal Student Loan Interest Rates
Federal Student Loan Benefits

Key Points

• Borrowers can now combine federal and private student loans through refinancing, which simplifies payments and may result in lower interest rates.

• Refinancing federal loans with a private lender results in the loss of federal benefits, such as forgiveness programs and income-driven repayment plans.

• Interest rates for federal student loans are fixed and determined annually, while private loans may offer lower rates based on creditworthiness and income.

• Federal student loans offer various benefits, including deferment and forbearance options, which are not available once loans are refinanced as private loans.

• Evaluating financial goals and loan details is essential before deciding to refinance, as it can impact payment terms and overall debt costs.

Can I Consolidate Federal and Private Student Loans?

If you’ve ever wondered, can I consolidate federal and private student loans?, the answer is yes. You can combine private and federal student loans by refinancing them with a private lender.

Through this process, you apply for a new loan (which is used to pay off your original loans) and obtain one with a new — ideally lower — interest rate.

Although you are combining your loans, refinancing isn’t the same thing as federal student loan consolidation.

Key Differences Between Consolidation and Refinancing

Some people use the words “refinance” and “consolidate” interchangeably, but consolidating student loans is a different process than refinancing student loans.

Federal student loans can be consolidated into one loan by taking out a Direct Consolidation Loan from the government. To be eligible for a Direct Consolidation Loan you must have at least one Direct Loan or one Federal Family Education Loan (FFEL). Federal loan consolidation does not typically lower your interest rate. The new student loan consolidation rate is the weighted average of the interest rates of your prior loans, rounded up to the nearest ⅛ of a percent.

You can only consolidate federal student loans in this way. Private student loans are not eligible for federal loan consolidation.

When you refinance student loans, you exchange your old student loans for a new private loan. You can refinance private student loans, federal student loans, or a combination of both types. When you refinance, you may be able to get a lower interest rate, which could help you save money on interest over the life of the loan, or more favorable loan terms, if you qualify.

However, refinancing federal loans makes them ineligible for federal benefits such as deferment and income-driven-repayment plans.

Pros and Cons of Combining Federal and Private Loans

Before you combine federal and private student loans, there are a number of things to think about. Consider the following advantages and drawbacks.

Pros:

• Combining federal and private loans may result in a lower interest rate if you qualify, which could help you save on interest over the life of the loan.

• You may be able to lower your monthly payments through refinancing by extending the term of your loan.

• Combining your loans can help you manage and streamline your payments since you’ll have just one loan rather than several.

Cons:

• Combining federal and private loans through refinancing means you’ll lose federal protections like forgiveness and deferment.

• In order to get lower interest rates, you’ll need a good credit score, a stable job, and a steady income.

• If you extend the term of the loan to lower your monthly payments, you’ll pay more interest over the life of the loan.

If you’re still debating what to do, here’s an easy decision tree to help you understand whether refinancing federal and private loans is the right option for you:

Steps to Consolidating Private and Federal Loans

If you decide that loan consolidation makes sense, here’s how to consolidate private and federal student loans through refinancing:

1. Decide which loans you want to consolidate. For instance, maybe you’d like to combine some of your federal loans with your private loans, but not all of them.

2. Look into lenders. Private lenders that provide refinancing include banks, credit unions, and online lenders. Each one offers different rates and terms. Find out about any fees they might charge, what kind of customer service they have, and what their eligibility requirements are.

3. Shop around. Each lender uses different criteria to determine if you’re eligible for a loan and the rates and terms you may get. To help find the best deal, you can prequalify with several lenders. Prequalifying involves a soft credit check, not a hard credit inquiry, so your credit score won’t be affected.

4. Apply for refinancing. Once you’ve selected a lender, you can fill out a loan application. You can typically do this online. You’ll need to provide your personal, employment, and salary information, as well as details about your private and federal student loans. Be sure to have backup like pay stubs and loan paperwork readily available since you may need to provide it. The lender will do a hard credit check, which could temporarily cause your credit score to drop a few points.

5. Find out if you’re approved. In general, you’ll learn whether you’re approved within several days. Keep an eye out for information from your new lender about the payments and due dates on the new loan.

Federal Student Loan Interest Rates

Depending on loan type and disbursement date, federal student loan interest rates are reassessed annually, every July. For the 2025-2026 school year, interest rates on new federal student loans range from 6.39% to 8.94%. Interest rates on federal student loans are determined by Congress and fixed for the life of the loan.

How Interest Rates Affect Consolidation and Refinancing Decisions

As noted earlier, when you apply to refinance, private lenders evaluate things like your credit history and credit score, as well as other personal financial factors, to determine the interest rate and terms you may qualify for.

If you’ve been able to build credit during your time as a student, or your income has significantly improved, you may be able to qualify for a more competitive interest rate than the rate on your current federal student loans — and perhaps any private student loans you have — when you consolidate your loans by refinancing with a private lender.

To get an idea of how much refinancing could potentially reduce the cost of interest on your loans, crunch the numbers with SoFi’s student loan refinancing calculator.

Federal Student Loan Benefits

Federal student loans come with a number of federal benefits and protections. If you refinance your federal loans — whether you’re consolidating them with private loans or not — the loans will no longer be eligible for federal benefits and protections.

Protections You May Lose When Combining Loans

Before you move ahead with refinancing, take a look at your loans to see if any of the following federal loan benefits and programs apply to you — and whether you might want to take advantage of them in the future. If you think you might need any of these protections, combining loans by refinancing them likely isn’t a good idea for you.

Student Loan Forgiveness

There are a few forgiveness programs available for borrowers with federal student loans. For example, under the Public Service Loan Forgiveness Program (PSLF), your Direct Loan balance may be eligible for forgiveness after 120 qualifying, on-time payments if you’ve worked in public service for an eligible nonprofit or government organization that entire time.

Pursuing PSLF can require close attention to detail to ensure your loan payments and employer qualify for the program. The qualification requirements are clearly stated on the PSLF section of the Federal Student Aid website.

Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in eligible schools that serve low-income families full-time for five consecutive years. The total amount forgiven depends on factors like the eligible borrower’s role and the subject they teach.

Income-Driven Repayment Plans

Income-driven repayment plans can ease the burden for eligible borrowers who feel their loan payments are higher than they can afford. With income-driven repayment, monthly payments are calculated based on borrowers’ discretionary income and family size, which can lower how much you owe each month. That can make your student debt more manageable. The repayment period on these plans is 20 to 25 years.

Just be aware that when you lower your payments or extend your repayment term, you’ll pay more interest over time.

Deferment or Forbearance

Borrowers who are having difficulty making payments on their student loans may qualify for deferment or forbearance, two programs that allow borrowers to temporarily pause payments on their federal student loans.

The biggest difference between them is that with forbearance, the borrower is responsible for paying the interest that accrues on the loan. Forbearance can have a major financial impact on a borrower, as any unpaid interest will be added to the original loan balance. With deferment, the borrower may or may not be responsible for paying the interest that accrues. For instance, those with Direct Subsidized Loans are not responsible for paying the accruing interest.

Refinancing Your Student Loans

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How does refinancing affect my credit score?

Refinancing affects your credit score because when you submit a formal loan application, the lender will check your credit score and credit history, which is known as a hard credit inquiry. That may cause your credit score to drop a few points temporarily.

Can I keep federal loan protections if I refinance?

No. Refinancing federal student loans with a private lender means that you lose access to federal programs and protections like income-driven repayment and forgiveness.

What are the risks of refinancing student loans?

The risks of refinancing federal student loans is losing access to federal programs and protections. In addition, if you extend the term of the loan through refinancing to lower your monthly payments, you’ll end up paying more interest over the life of the loan.

Is it better to consolidate or refinance student loans?

Whether it’s better to consolidate or refinance your student loans depends on your situation. If you have federal loans and want to combine them all into one loan to streamline your payments and make them more manageable, consolidation may be the right option for you.

On the other hand, if you have private loans and your credit and financial background is strong, refinancing may help you get a lower interest rate, which could help you save money. Refinancing may also be worth considering if you have federal loans and won’t need to use any of the federal benefits they provide, and you can qualify for a lower interest rate.

What should I consider before combining federal and private student loans?

Before combining federal and private student loans through refinancing, make sure you won’t need to use any of the federal benefits that federal student loans provide, such as income-driven repayment and deferment. Remember, refinancing makes federal loans ineligible for these programs.

Also, consider whether your credit and financial history is strong enough to qualify for a lower interest rate than you have on your current loans before refinancing.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOSLR-Q225-033

Jun

2025

Can a Parent PLUS Loan Be Transferred to a Student?

By Kayla McCormack | Debt Payoff, Student Loans, student_loan | No Comments

If you took out a federal Parent PLUS loan to help your child through college, you may be wondering if it’s possible to transfer the loan into your child’s name now that they’ve graduated and have an income. While there are no federal loan programs that allow for this, there are other options that let your child take over the loan.

Read on to learn how to transfer a Parent PLUS loan to a student.

Table of Contents

How to Transfer a Parent PLUS Loan to a Student
Parent PLUS Loan Overview
Can a Child Make the Parent PLUS Loan Payments?
Parent PLUS Loan Refinancing
Alternatives to Transferring a Parent PLUS Loan

Key Points

• Transferring a Parent PLUS loan to a student involves refinancing through a private lender.

• The student must apply for a new loan to pay off the Parent PLUS loan.

• Once refinanced, the student becomes responsible for the new loan’s repayments.

• Refinancing can potentially lower the interest rate and monthly payments.

• The process is irreversible, making the student solely responsible for the debt.

How to Transfer a Parent PLUS Loan to a Student

There are no specific programs in place to transfer a Parent PLUS loan to a student, but there is a way to do it. To make the transfer of the Parent PLUS loan to a student, the student can apply for student loan refinancing through a private lender. The student then uses the refinance loan to pay off the Parent PLUS loan, and they become responsible for making the monthly payments and paying off the new loan.

Here’s how to refinance Parent PLUS loans to a student.

Gather Your Loan Information

When filling out the refinancing application, the student will need to include information about the Parent Plus loan. Pull together documentation about the loan ahead of time, including statements with the loan payoff information, and the name of the loan servicer.

Compare Lenders

Look for lenders that refinance Parent PLUS loans (most but not all lenders do). Then shop around to find the best interest rate and terms. Many lenders allow applicants to prequalify, which doesn’t impact their credit score.

Fill Out an Application

Once the student has found the lender they’d like to work with, they will need to submit a formal application. They can list the Parent PLUS loan on the application and note that it is in their parent’s name, and include any supporting documentation the lender requires.

Eligibility Requirements for Refinancing a Parent PLUS Loan

To refinance a Parent PLUS loan to a student, the student should first make sure that they qualify for refinancing. Lenders look at a variety of factors when deciding whether to approve a refinance loan, including credit history and credit score, employment, and income. Specific eligibility requirements may vary by lender, but they typically include:

• A credit score of at least 670 to qualify for refinancing and to get better interest rates

• A stable job

• A steady income

• A history of repaying other debts

If approved for refinancing, the student can pay off the Parent PLUS loan with the refinance loan and begin making payments on the new loan.

Advantages of Refinancing a Parent PLUS Loan

The main advantage of refinancing a parent student loan like a Parent PLUS loan is to get the loan out of the parent’s name and into the student’s. However, there are other potential advantages to refinancing student loans, including:

• Lowering the interest rate

• Reducing the monthly payments

• Paying off the loan faster

• Helping the student to build a credit history

Disadvantages of Refinancing a Parent PLUS Loan

While it may be beneficial to refinance a Parent PLUS loan into a private loan, there are some disadvantages to Parent PLUS vs. private loans that should be considered. The drawbacks include:

• Losing federal student loan benefits, including income-driven repayment, deferment options, and Public Service Loan Forgiveness

• Possibly ending up with a higher interest rate, especially if the student has poor credit

• The student is solely responsible for the monthly payment, which might become a hardship if their income is low

If you do choose to refinance your Parent PLUS loan, you should note that this process is not reversible. Once your child signs on the dotted line and pays off the Parent PLUS loan, the debt is theirs.

Parent PLUS Loan Overview

The Department of Education provides Parent PLUS loans that can be taken out by a parent to fund their child’s education. Before applying, the student and parent must fill out the Free Application for Federal Student Aid (FAFSA®).

Then the parent can apply directly for a Parent PLUS loan, also known as a Direct PLUS Loan.

The purpose of a Parent PLUS loan is to fund the education of the borrower’s child. The loan is made in the parent’s name, and the parent is ultimately responsible for repaying the loan. Parent PLUS loans come with higher interest rates than federal student loans made to students, plus a loan fee that is the percentage of the loan amount. These loans are not subsidized, which means interest accrues on the principal balance from day one of fund disbursement.

Parents are eligible to take out a maximum of the cost of attendance for their child’s school, minus any financial aid the student is receiving. Payments are due immediately from the time the loan is disbursed, unless you request a deferment to delay payment. You can also opt to make interest-only payments on the loan until your child has graduated.

Pros and Cons of Parent PLUS Loans

Parent PLUS loans allow you to help your child attend college without them accruing debt.

Pros of Parent PLUS loans include:

You can pay for college in its entirety. Parent PLUS loans can cover the full cost of attendance, including tuition, books, room and board, and other fees. Any money left over after expenses is paid to you, unless you request the funds be given directly to your child.

Multiple repayment plans available. As a parent borrower, you can choose from three types of repayment plans: standard, graduated, or extended. With all three, interest will start accruing immediately.

Interest rates are fixed. Interest rates on Parent PLUS loans are fixed for the life of the loan. This allows you to plan your budget and monthly expenses around this additional debt.

They are relatively easy to get. To qualify for a Parent PLUS loan, you must be the biological or adoptive parent of the child, meet the general requirements for receiving financial aid, and not have an adverse credit history. If you do have an adverse credit history, you may still be able to qualify by applying with an endorser or proving that you have extenuating circumstances, as well as undergoing credit counseling. Your debt-to-income ratio and credit score are not factored into approval.

Cons of Parent PLUS loans include:

Large borrowing amounts. Because there isn’t a limit on the amount that can be borrowed as long as it doesn’t exceed college attendance costs, it can be easy to take on significant amounts of debt.

Interest accrues immediately. You may be able to defer payments until after your child has graduated, but interest starts accruing from the moment you take out the loan. By comparison, federal subsidized loans, which are available to students with financial need, do not accrue interest until the first loan payment is due.

Loan fees. There is a loan fee on Parent PLUS loans. The fee is a percentage of the loan amount and it is currently (since October 2020) 4.228%.

Can a Child Make the Parent PLUS Loan Payments?

Yes, your child can make the monthly payments on your Parent PLUS loan. If you want to avoid having your child apply for student loan refinance, you can simply have them make the Parent PLUS loan payment each month instead.

However, it’s important to be aware that if you do this, the loan will still be in your name. If your child misses a payment, it will affect your credit score, not theirs. Your child also will not be building their own credit history since the debt is not in their name.

Parent PLUS Loan Refinancing

As a parent, you may also be interested in refinancing your Parent PLUS loan yourself. Refinancing results in the Parent PLUS loan being transferred to another lender — in this case, a private lender. With refinancing, you may be able to qualify for a lower interest rate. Securing a lower interest rate allows you to pay less interest over the life of the loan.

When you refinance federal Parent PLUS loans, you do lose borrower protections provided by the federal government. These include income-driven repayment plans, forbearance, deferment, and federal loan forgiveness programs. If you are currently taking advantage of one of these opportunities, it may not be in your best interest to refinance.

Parent Plus Loan Consolidation

Another option for parents with Parent PLUS loans is consolidation. By consolidating these loans into a Direct Consolidation Loan you become eligible for the income-contingent repayment (ICR) plan, which is an income-driven repayment (IDR) plan. (Parent PLUS loans are not eligible for IDR plans otherwise.)

On an ICR plan, your monthly payments are either what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income; or 20% of your discretionary income divided by 12 — whichever is less.

One thing to consider if you consolidate a Parent PLUS loan is that you may pay more interest. In the consolidation process, the outstanding interest on the loans you consolidate becomes part of the principal balance on the consolidation loan. That means interest may accrue on a higher principal balance than you would have had without consolidation.

Alternatives to Transferring a Parent PLUS Loan

Instead of learning how to transfer Parent PLUS loans to a student, you could opt to keep the loan in your name and have your child make the monthly loan payments instead. But as noted previously, if you go this route and your child neglects to make any payments, it affects your credit not theirs. Also, when the loan remains in your name, the child is not building a credit history of their own.

You could also choose to consolidate Parent PLUS loans, as outlined above. Just weigh the pros and cons of doing so.

And finally, you could refinance the loan in your name to get a lower interest rate or more favorable terms, if you qualify.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What if I can’t pay my Parent PLUS loans?

If you are struggling to pay your Parent PLUS loan, get in touch with your lender right away. One option they may offer is a deferment or forbearance to temporarily suspend your payments. Keep in mind that with forbearance, interest will continue to accrue on your loan even if payments are postponed.

You could also consider switching the repayment plan you are enrolled in to an extended repayment plan, or refinancing your loan in order to get a lower interest rate.

Can you refinance a Parent PLUS loan?

Yes, you can refinance a Parent PLUS loan through a private lender. Doing so will make the loan ineligible for any federal borrower protections, but it might allow you to secure a more competitive interest rate or more favorable terms. You could also opt to have the refinanced loan taken out in your child’s name instead of your own.

Is there loan forgiveness for Parent PLUS loans?

It is possible to pursue Public Service Loan Forgiveness (PSLF) with a Parent PLUS loan. To do so, the loan will first need to be consolidated into a Direct Consolidation loan and then enrolled in the income-contingent repayment (ICR) plan.

Then, you’ll have to meet the requirements for PSLF, including 120 qualifying payments while working for an eligible employer (such as a qualifying not-for-profit or government organization). Note that eligibility for PSLF depends on your job as the parent borrower, not your child’s job.

What happens if a Parent PLUS loan is not repaid?

If you can’t make the payments on a Parent PLUS loan, contact your loan servicer immediately to prevent the loan from going into default. The loan servicer can go over the options you have to keep your loan in good standing. For instance, you could change your repayment plan to lower your monthly payment. Or you could opt for a deferment or forbearance to temporarily stop the payments on your loan.

Can a Parent PLUS loan be consolidated with federal loans in the student’s name?

No, Parent PLUS loans cannot be consolidated with federal student loans in the student’s name. You can only consolidate Parent PLUS loans in your name.

SOSLR-Q225-032

Jun

2025

Student Loan Consolidation Rates: What to Expect

By Kayla McCormack | Fresh Out of School, Student Loans, student_loan | No Comments

It’s possible to consolidate or refinance your student loans into one loan with a single monthly payment. The major difference between these two options is that consolidation is offered through the federal government for federal student loans only. Refinancing is done with a private lender and can include both federal and private student loans.

Consolidating your student loans typically does not lower your interest rate. With refinancing, you get a new interest rate that could be lower, depending on your eligibility.

Understanding the differences between consolidation vs. refinancing — and the way student loan consolidation rates work compared to the way refinancing rates work — is critical before deciding to take the plunge.

Table of Contents

What Is Federal Student Loan Consolidation?
What Is Student Loan Refinancing?
Comparing Student Loan Refinancing and Consolidation
Private Student Loan Refinancing Rates
Why Interest Rates Aren’t the Only Thing to Consider
Steps to Apply for Consolidation or Refinancing
The Takeaway

Key Points

• Student loan consolidation combines multiple federal loans into one federal loan through the Direct Loan Consolidation program.

• The new interest rate from consolidation is the weighted average of previous loans, rounded up to the nearest one-eighth of a percent.

• Refinancing student loans through private lenders can include both federal and private loans, potentially lowering the interest rate based on personal credit history.

• Refinancing results in the loss of federal loan benefits, such as forgiveness programs and income-driven repayment plans.

• It’s crucial to compare both consolidation and refinancing options to determine which option best suits individual financial situations and goals.

What Is Federal Student Loan Consolidation?

You can combine all your federal student loans into one loan by taking out a Direct Consolidation Loan from the government. In order to get a Direct Consolidation Loan, you must have at least one Direct Loan or one Federal Family Education Loan (FFEL).

How Federal Consolidation Affects Your Interest Rate

When you consolidate student loans with the federal government through the Direct Loan Consolidation program, it does not typically result in interest rate savings. That’s because the new student loan consolidation interest rate is the weighted average of your prior interest rates, rounded up to the nearest one-eighth of a percent.

Benefits of Federal Loan Consolidation

Consolidating your loans may simplify the repayment process if you have multiple loan servicers. With consolidation, you combine all your loans into one loan with one payment. This can make it easier to stay on top of your payments.

Consolidation may also help lower your monthly payments by giving you up to 30 years to repay the loan. Just be aware that with an extended loan term you’ll end up paying more in interest over the life of the loan.

Finally, consolidating your loans may give you access to federal loan forgiveness through an income-driven repayment (IDR) plan, or the Public Service Loan Forgiveness (PSLF) program.

What Is Student Loan Refinancing?

When you refinance student loans, it means you are borrowing a new loan which is then used to pay off the existing student loans you have. You can refinance both federal and private student loans. However, it’s important to note that when you refinance student loans with a private lender, you lose access to federal loan forgiveness programs and payment assistance programs, such as income-driven repayment plans and student loan deferment.

How Refinancing Can Lower Your Interest Rate

When you refinance with a private lender, the new loan will have a new interest rate and terms, which are based on factors such as an individual’s credit history, employment history, and debt-to-income ratio.
Borrowers may have the choice between a fixed or variable interest rate. In some cases, borrowers who refinance to a lower interest rate may be able to spend less in interest over the life of the loan.

To get an idea of what refinancing your student loans could look like with a lower rate, you can use this student loan refinancing calculator.

Who Qualifies for the Best Refinancing Rates

Borrowers with a strong credit history, a stable income, a history of steady employment, and a low debt-to-income ratio typically qualify for the best refinancing rates.

In order to get the lowest refinancing rates, borrowers generally need an “excellent” credit score, which FICO defines as 800 or higher.

Recommended: How to Build Credit

Comparing Student Loan Refinancing and Consolidation

As previously mentioned, consolidation can be completed for federal student loans through a Direct Consolidation Loan. Refinancing is completed with private lenders and can be done with either federal and/or private loans.

There are pros and cons of consolidating and also of refinancing. For example, Direct Loan Consolidation allows borrowers to retain the federal benefits and borrower protections that come with their federal loans, while refinancing does not.

Depending on how a borrower’s financial situation and credit profile has changed since they originally took out their student loans, refinancing could allow borrowers to secure a more competitive rate or preferable terms. Consolidating doesn’t typically result in a lower rate or save borrowers money.

When Consolidation Makes More Sense

Consolidation may be the better choice for you if you have federal Direct or FFEL loans and if any of these factors apply to your situation:

• You need federal programs and protections like federal forgiveness or income-driven repayment plans.

• You want to streamline your monthly loan payments.

• You want to lower your monthly payments by extending your loan term for up to 30 years through a Direct Consolidation Loan. Just be aware that you’ll pay more interest over the life of the loan if you extend your loan term.

When Refinancing Is the Better Option

Refinancing may be the right option for you in the following situations:

• You only have private student loans or you have federal loans but don’t need the federal benefits that come with them.

• Your financial situation and credit profile have improved since you originally took out your student loans.

If you meet the criteria above, refinancing may allow you to secure a more competitive rate or preferable terms. An interest rate that’s even just a few percentage points lower than your current rate could save you thousands of dollars over the life of the loan.

Private Student Loan Refinancing Rates

It may be possible for borrowers to qualify for a more competitive interest rate by refinancing their student loans with a private lender. As noted previously, the rate you get typically depends on your total financial picture, including your credit history, income, and employment history.

Fixed vs. Variable Rate Options

Borrowers can choose between fixed rates and variable rates when refinancing. Fixed rate loans have a rate that remains the same over the life of the loan. Variable rate loans are tied to market conditions and may fluctuate up or down.

As of late May 2025, current student loan refinance rates with SoFi start at 4.49% APR with all discounts for fixed rate loans, and 5.99% APR with all discounts for variable rate loans.

Why Interest Rates Aren’t the Only Thing to Consider

Interest rates aren’t the only consideration when deciding whether to consolidate or refinance. It’s important to carefully weigh the other potential implications of both options.

Federal Benefits You Might Lose When Refinancing

If you refinance with a private lender, you’ll no longer be eligible for federal loan protections, including federal forgiveness, such as PSLF and Teacher Loan Forgiveness; access to income-driven repayment plans; and deferment and forbearance.

Term Length Considerations

With a Direct Consolidation Loan, you might pay more interest overall for your loans, since consolidation usually lengthens your repayment term.

With refinancing, you could choose to lengthen your loan term to reduce your monthly payments, but doing so will increase the amount of interest you pay over the life of the loan. A shorter loan term can help you repay your loan faster, but it typically increases your monthly payments.

With either option, think carefully about how the loan term could affect your payments in the near and long term.

Steps to Apply for Consolidation

If you’re interested in federal student aid consolidation, this is the process to apply:

1. The Direct Consolidation Loan application form is available online. Fill out the online application and submit it — the entire process takes less than 30 minutes, on average.

2. You can select which loans you do and do not want to consolidate on your loan application. For instance, if you have a loan that will be paid off in a short amount of time, you might consider leaving it out of the consolidation.

3. After submitting your application, it’s natural to wonder, how long does student loan consolidation take? The process is approximately four to six weeks from the date of submission, according to the Federal Student Aid office.

4. Remember to keep making payments on your loans during the application process until you are notified that they have been paid off by your new Direct Consolidation Loan. Your first new payment will be due within 60 days of when your Direct Consolidation Loan is paid out.

Steps to Apply for Refinancing

If you think student loan refinancing makes more sense for you, complete the following steps:

1. Research lenders. Private lenders that provide refinancing include banks, credit unions, and online lenders. Each one offers different rates and terms. Look at any fees they might charge, what kind of customer service they offer, and what their qualification requirements are.

2. Shop around for the most favorable rates and terms. Each lender uses different criteria to determine if you’re eligible for a refinance loan and what rates and terms you may get. To find the best deal, you can prequalify for refinancing with several lenders. Prequalifying does not involve a hard credit inquiry, so your credit score won’t be affected.

3. Choose a lender and apply. Once you’ve selected a lender, fill out and submit a loan application. Many lenders allow you to do this online. You’ll need to provide your personal, employment, and salary information as well as details about your student loans. Be sure to have documentation like pay stubs and loan paperwork on hand since you may need to provide it. The lender will do a hard credit check, which could temporarily cause your credit score to drop a few points.

4. Typically, you’ll learn whether you’re approved within several days — and in some cases, even on the same day. Keep an eye out for correspondence from the new lender about your new payments and due dates.

The Takeaway

Consolidating federal student loans can be done through the federal government with a Direct Consolidation Loan. The interest rate on this type of loan is the weighted average of the interest rates on the loans you’re consolidating, rounded up to the nearest one-eighth of a percent. When you consolidate, you keep your federal benefits and protections.

Refinancing student loans allows borrowers to combine both federal and private student loans into a single new loan with a new interest rate. The rate may be variable or fixed, and will be determined by the lender based on criteria like market rates and the borrower’s credit history. Again, refinancing will eliminate any federal loans from borrower protections, including income-driven repayment plans and federal forgiveness.

Depending on an individual’s personal circumstances, either consolidation or refinancing may make more sense. If refinancing seems like an option for you, consider SoFi.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Is it better to consolidate or refinance your student loans?

Whether it’s better to consolidate or refinance your student loans depends on your specific situation and goals. If you have federal loans and want to combine them all into one loan to streamline and manage your payments, consolidation may be an option for you.

If you have private loans and your credit and financial history are strong and you’re hoping to lower your interest rate, refinancing may make sense for you. Refinancing could also be an option to consider in this case if you have federal loans and won’t need to use any of the federal benefits they offer, such as income-driven repayment or federal forgiveness.

How much can refinancing save on student loan interest?

How much refinancing can save a borrower on interest depends on the interest rate they qualify for. Borrowers with a strong credit history, steady employment, and a stable income typically qualify for lower rates. In general, an interest rate that is even just a few percentage points lower than your current rate could save you thousands of dollars.

Can you consolidate private and federal student loans together?

Private loans are not eligible for federal student loan consolidation. The only way to combine private and federal student loans is through student loan refinancing with a private lender. However, refinancing your federal loans forfeits your ability to access federal programs and protections, such as income-driven repayment and federal deferment.

Does consolidating or refinancing student loans hurt your credit?

Consolidating student loans does not hurt your credit since no credit check is required. Refinancing student loans involves a hard credit inquiry when you submit a formal loan application. That may cause your credit score to drop a few points temporarily.

How often can you refinance student loans?

There is no limit on how often you can refinance student loans — generally, you can refinance them as often as long as you qualify for refinancing. That said, you’ll likely want to make sure that refinancing will save you money on interest and/or help you get better loan terms. Also, if you refinance multiple times within a certain period of time, the multiple credit checks involved could temporarily negatively impact your credit score.

SOSLR-Q225-024

May

2025

Getting Private Student Loans Without a Cosigner

By Anna Davies | Financial Independence, Fresh Out of School, Student Loans, student_loan, Terminology | No Comments

With the average cost of tuition at a private college close to $40,000 per year, it’s no surprise that many students will take out student loans to pay for their education. These student loans come in all shapes and sizes: federal or private, subsidized or unsubsidized, cosigned or not.

Most federal student loans do not require a credit check and can be borrowed without a cosigner. While the majority of students who take out private loans have a cosigner to guarantee the loan, that’s not an option for everyone. A cosigner — generally a family member or close friend — is someone who guarantees they will pay back your student loan if, for some reason, you can’t.

If you don’t have enough established credit to qualify for a private student loan on your own, turning to a cosigner may help you get approved at a better interest rate. However, not everyone has someone to cosign their student loans. Luckily, there are plenty of ways to potentially qualify for both private and federal student loans without a cosigner. Here’s what you need to know.

Key Points

• Many students need to take out loans due to rising tuition costs, with options including federal loans that do not require a cosigner.

• Obtaining a private student loan without a cosigner is possible, but typically requires a solid credit history and may result in higher interest rates.

• Federal student loans offer various funding options without the need for a cosigner, although loan limits may restrict the total amount available.

• Students unable to secure a loan without a cosigner can consider alternatives such as attending a community college or exploring grants and scholarships.

• Building credit early and checking eligibility through soft credit inquiries can help increase the chances of qualifying for loans without a cosigner.

Purpose of Adding a Cosigner

There are two main reasons why adding a cosigner to a private student loan may make sense — one is to improve your chances of being approved for a loan and the other is to potentially help secure a more competitive interest rate.

If you’re applying for student loans, you may not have a long credit history yet. To lenders, a lack of credit history can be seen as risky because you haven’t proved how well you can manage your financial obligations. You might need a cosigner to convince a lender to give you a student loan, since having a cosigner with more financial security or a better credit history reduces risk to the lender.

A cosigner with a strong credit history may also help you get approved for a loan with a lower interest rate, which could help reduce the amount of money you pay in interest over the life of the loan.

A cosigner will need to share their financial information with the lender, so it’s a good idea to make sure that your cosigner has plenty of time to get their documents in order and discuss loan applications with you.

Recommended: A Complete Guide to Private Student Loans

Named a Best Private Student Loans
Company by U.S. News & World Report.

Can You Get a Federal Student Loan Without a Cosigner?

Yes, you can get a federal student loan without a cosigner. The first step in qualifying for a federal financial aid package is to fill out the Free Application for Federal Student Aid (FAFSA) .

You’ll submit your financial information and, if you’re a dependent student, your parents’ information, too. Depending on your financial need, you’ll then be offered a combination of federal student loans — including Subsidized and Unsubsidized Direct or PLUS Loans — and work-study programs.

Federal student loans typically do not require a cosigner, nor a credit check, and they often have competitive interest rates. Direct PLUS Loans , which are primarily offered to parents and graduate or professional students, however, do require a credit check.

You’ll want to keep in mind that there are limits on how much you can take out in federal loans. For example, dependent students whose parents are unable to obtain PLUS Loans cannot take out more than $9,500 as a first-year undergrad. And, no more than $3,500 of this amount may be in subsidized loans. Because of these limits, students may look for additional sources of funding.

Can You Get a Private Student Loan Without a Cosigner?

Yes, it is possible to get a private student loan without a cosigner, but you will likely need to have an established credit history or be willing to pay a higher interest rate.

To qualify for a private student loan, which are available from banks, credit unions, and online lenders, you generally have to be age 18 or older, a U.S. resident, and enrolled in school at least part time. Additionally, certain lenders may only approve loans if you are enrolled at schools that meet their criteria, which can vary from lender to lender.

You also typically must meet certain credit requirements. This often includes at least two years of established credit history, a good credit score (670-739), and a certain minimum amount of income.

Some private lenders will provide student loans without a cosigner even if you have a limited credit history or income. However, you will almost definitely pay a higher interest rate.

💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Pros of Having a Cosigner on a Private Student Loan

Having a cosigner on a private student loan can help you qualify for a loan you might not otherwise be able to get. In addition, it can help you get approved for a larger loan amount, as well as lower rates and fees.

You’ll also want to keep in mind that having a cosigner is not necessarily a permanent situation. Some lenders will release a cosigner from a loan after the primary borrower meets certain requirements, like a certain number of payments and a credit check.

You also may consider refinancing your loan once you’re out of school, which will then be a way to have the loan in your own name. It can be a good idea to talk through what your cosigner expects and anticipates for the life of the loan, so that you’re both on the same page.

Recommended: Should I Refinance Federal Student Loans?

What is the Minimum Credit Score for a Student Loan?

If you apply for a federal student loan, your credit score won’t be a factor, since a credit check is not even part of the application process. However, private student loans often require a credit score of at least 670 to get a loan without a cosigner.

The exact qualification criteria will vary from lender to lender but, generally, the higher your credit score, the more likely you are to qualify and obtain a competitive interest rate for a private student loan.

Before you apply for a private student loan, you may want to get copies of your credit reports (available free at AnnualCreditReport.com) and check your credit score to get a sense of where you may stand in the eyes of a lender. You also can check your credit report for any errors, which could bring down your score.

Who Is Eligible for Student Loans That Don’t Require Cosigners?

Federal student loans don’t require a cosigner. There are also some private student loans that don’t require a cosigner, though you typically need to meet certain credit and income requirements.

You may be able to check your private student loan eligibility before you apply for a loan without a cosigner. This triggers a soft credit check. A soft credit check does not affect your credit score, but can give you an approximate idea of whether or not you’ll be approved for a loan and what the interest rate on the loan may be.

Keep in mind, though, that your loan won’t be finalized until you apply for the loan. At this point, a hard credit check will be performed and final approval decisions will come through. But checking loan eligibility is one way to know whether or not a lender may consider your application without a cosigner.

Options If You Can’t Get a Student Loan Without a Cosigner?

If you can’t get a student loan without a cosigner and you don’t have someone who can be your cosigner, don’t panic. There are other potential paths forward depending on your goals and your circumstances:

• Take a gap year. Some students take a year off to build credit, grow their income, and reapply once they feel their finances are on more secure footing.

• Consider a less expensive school. Some students who can’t get a cosigner decide to go to a community college and take core credit courses. Once they feel their finances are more secure, they transfer to their intended school to finish their degree.

• Rethink your education priorities. If you can’t get a cosigner and are having trouble shouldering loans on your loan, you may recalibrate your educational goals and consider different degree programs or institutions that may have a less expensive price tag. It can be helpful to talk to people who work in your future career field — they may have thoughts on how you can save money on education or may have tips for alternate paths toward the job you want.

• Talk with your financial aid office. Chances are, your financial aid office has seen similar situations and may have ideas. They may also be able to connect you with other funding opportunities, as well as students who have independently financed their education.

Other Ways to Help Finance Your Education

Besides taking out federal student loans or private student loans without a cosigner, there are a few other options to help finance your education.

Grants and Scholarships

There are many grants and scholarships available, including need-based grants and merit-based grants (grants available for students who reach a certain level of academic excellence) that you do not need to repay.

You can search for scholarships online to see if there are any you might qualify for. You might also ask your high school’s college counselor or selected college’s financial aid office for information on any scholarships or grants you may be eligible for.

Working While in School

You might also consider working while you’re in school. Some students find they can manage a job alongside their studies, while others find that it’s challenging to find a balance.

There is no “right” way to pay for your education. Some students may take a year or more off to save up for school, and then focus full-time on school. Talking to graduates can help you see different pathways and that there is no “one size fits all” when it comes to financing an education.

The Takeaway

Applying for a private student loan with a cosigner can help a potential borrower secure a more competitive interest rate or preferable loan terms. This is because the cosigner provides additional security for the lender — if the primary borrower runs into any issues repaying the loan, the cosigner is responsible.

Federal student loans, aside from Direct PLUS Loans, do not require a credit check or cosigner. If you find that your federal loans aren’t going to cover your education, a private student loan may help. And, some private lenders will offer student loans without a cosigner. Just keep in mind that private student loans lack the borrower protections offered by federal student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Is it possible to get a private student loan without a cosigner?

Yes, it is possible, but it can be more difficult. Lenders typically require proof of good credit and sufficient income. Students without a strong financial profile may have trouble qualifying or may face higher interest rates.

How can students improve their chances of qualifying for a private student loan without a cosigner?

Students can build credit by paying bills on time, maintaining low credit card balances, and possibly working part-time to show income. A higher credit score and steady income improve the odds of loan approval.

Are there alternatives to private loans if you can’t get one without a cosigner?

Yes. Students should first maximize federal student aid, including grants, scholarships, and federal loans, which don’t require a cosigner. Some schools also offer institutional loans or payment plans that can help bridge funding gaps.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOISL-Q225-017

Apr

2025

5 Tips For Getting the Lowest Rate When Refinancing Student Loans

By Sarah Brooks | Fresh Out of School, Student Loans, student_loan | No Comments

One main reason for refinancing student loans with a private lender is to combine your loans into one new loan with a lower interest rate. If you get a lower interest rate, your monthly student loan payment will go down. You’ll also pay less interest over the life of the loan.

Here, learn more about steps to take to help get a lower interest rate on student loans.

Key Points

• A student loan refinance may help borrowers get a lower interest rate if they qualify and reduce monthly loan payments.

• A strong credit history and a low debt-to-income ratio can help refinancing applicants get a better rate.

• Reducing living expenses and paying down other debt like credit card debt could be beneficial when applying for student loan refinance.

• Providing lenders with a comprehensive employment history and proof of salary increases can be useful.

• Those without a strong credit history may want to consider refinancing with a cosigner for better rates.

Reduce Your Interest on Student Loans

Consolidating multiple student loan balances into one new refinance loan with a low interest rate can be ideal for those looking to reduce the amount they owe in interest and also lower their monthly loan payment. It’s important to note, though, that if you refinance federal student loans, you lose access to federal benefits such as income-driven repayment plans.

Getting approved for student loan refinancing isn’t just a matter of submitting an application. You need a game plan — one that will help you become a strong loan candidate, who’ll qualify for a lower student loan interest rate. Here are five strategies that may help.

5-Point Plan for Getting a Low Interest Rate

1. Check your credit.

If you want to reduce your student loan interest rate through refinancing, the first thing you should do is check your credit score. The stronger your credit profile, the less risky you appear to lenders. If your credit profile is solid — meaning you have a good credit score and a low debt-to-income ratio — lenders should offer you better rates.

If, however, your credit profile isn’t quite where you want it to be, that’s OK. Take a few months to build your credit and reapply for student loan refinancing down the line to see if you qualify for a better rate.

Recommended: Why Your Debt to Income Ratio Matters

2. Take a hard look at your cost of living.

Some cities are more expensive to live in than others. Someone renting an apartment in a small Midwestern town, for example, has lower living expenses than someone who owns a row home in San Francisco. Cost of living ties directly into your debt-to-income ratio, and therefore it matters when you want to get a lower interest rate on student loans.

To some extent, this is out of your hands; your zip code helps lenders determine your cost of living. But anything you can do to pay down debt, especially high-interest credit card debt, and make choices that free up more money — such as renting a smaller place, taking on a roommate, or leasing a cheaper car — can help your case.

3. Give lenders a complete history.

Some student loan refinancing lenders consider things like where you went to school and your position at work when they weigh your application. Provide as much information as you can when it comes to your undergraduate and graduate degrees.

Be sure to also include all relevant work experience. Again, if you can show lenders that you have a solid work history and your income has steadily increased, you will appear less risky. The less riskier you are to lenders, the better your student loan interest rate is likely to be.

If there’s a job offer on the horizon, be sure to submit your offer letter with your application. And if you get a promotion while your application is under review, notify the lender immediately. Finally, if you’re in line for a promotion that will positively affect your paycheck, wait until it happens before you apply.

4. Show all your income.

When lenders ask for income information, they mean all of your income, not just job earnings. List dividends, interest earned, bonuses, and the extra money you make from your side hustle or Airbnb rental property. As long as you can prove these income sources, it will all count toward your debt-to-income ratio and help to lower it. And again, the lower this ratio, the better chances you have at qualifying for a lower student loan refinance rate.

Also, make sure your driver’s license is current and that your student loan statements are all correct. If you’re self-employed, you may want to wait until you’ve filed your taxes to apply for refinancing — it’s one of the easiest ways to prove the previous year’s income.

5. Be flexible.

If you have a number of student loans and you’re not offered the best rate when you apply for refinancing, consider refinancing only a couple of them. You may get a lower interest rate with a smaller refinance balance. You can always apply for the full balance down the road after you’ve received a raise or moved to a less expensive location.

Being flexible also means you might want to think about asking a friend or relative for help if your application isn’t as strong as you’d like. When you refinance your student loans with a cosigner who has a good credit profile and low debt-to-income ratio, you may be able to get a lower rate than if you refinanced on your own.

Refinance Student Loans With SoFi

The stronger you are as a student loan refinancing candidate, the better your chances are of getting a lower student loan refinance rate. To get the lowest rate when refinancing, check your credit, take a close look at your living expenses and debt-to-income ratio, give lenders a complete history of your education and employment, make sure to include all of your income sources in the application, and finally, be flexible, even if that means applying with a cosigner.

Keep in mind, though, that if you choose to refinance your federal student loans with a private lender, you lose access to federal benefits, such as student loan forgiveness and income-driven repayment plans. Make sure you don’t plan on using these benefits now or at any point in the future before deciding to refinance.

If you do think a student loan refinance may be right for you, consider SoFi. SoFi offers competitive rates and does not charge origination fees. It takes just a few minutes to see your rates, and your credit score will not be affected when you prequalify.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can you negotiate your student loan interest rate?

Not necessarily. Interest rates are determined by both the market and your credit profile, leaving little room for negotiation. You could, however, present your lowest offer to another lender to see if they will match that.

How can I get a lower interest rate when refinancing my student loans?

Strategies to potentially get a lower interest rate when refinancing student loans include building your credit profile, having a reliable source of income, and making sure your debt-to-income ratio is low.

Is it possible to get lower rates when refinancing student loans?

Yes, it is possible to get a lower interest rate when refinancing student loans. Your student loan interest rate will generally depend on current market rates, your credit profile, and your debt-to-income ratio. A strong credit history and a lower debt-to-income ratio may help you get a lower rate.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSLR-Q225-007

How and When to Combine Federal Student Loans & Private Loans

Can I Consolidate Federal and Private Student Loans?

Key Differences Between Consolidation and Refinancing

Pros and Cons of Combining Federal and Private Loans

Pros:

Cons:

Steps to Consolidating Private and Federal Loans

Federal Student Loan Interest Rates

How Interest Rates Affect Consolidation and Refinancing Decisions

Federal Student Loan Benefits

Protections You May Lose When Combining Loans

Student Loan Forgiveness

Income-Driven Repayment Plans

Deferment or Forbearance

Refinancing Your Student Loans

FAQ

How does refinancing affect my credit score?

Can I keep federal loan protections if I refinance?

What are the risks of refinancing student loans?

Is it better to consolidate or refinance student loans?

What should I consider before combining federal and private student loans?

Can a Parent PLUS Loan Be Transferred to a Student?

How to Transfer a Parent PLUS Loan to a Student

Gather Your Loan Information

Compare Lenders

Fill Out an Application

Eligibility Requirements for Refinancing a Parent PLUS Loan

Advantages of Refinancing a Parent PLUS Loan

Disadvantages of Refinancing a Parent PLUS Loan

Parent PLUS Loan Overview

Pros and Cons of Parent PLUS Loans

Pros of Parent PLUS loans include:

Cons of Parent PLUS loans include:

Can a Child Make the Parent PLUS Loan Payments?

Parent PLUS Loan Refinancing

Parent Plus Loan Consolidation

Alternatives to Transferring a Parent PLUS Loan

FAQ

What if I can’t pay my Parent PLUS loans?

Can you refinance a Parent PLUS loan?

Is there loan forgiveness for Parent PLUS loans?

What happens if a Parent PLUS loan is not repaid?

Can a Parent PLUS loan be consolidated with federal loans in the student’s name?

Student Loan Consolidation Rates: What to Expect

What Is Federal Student Loan Consolidation?

How Federal Consolidation Affects Your Interest Rate

Benefits of Federal Loan Consolidation

What Is Student Loan Refinancing?

How Refinancing Can Lower Your Interest Rate

Who Qualifies for the Best Refinancing Rates

Comparing Student Loan Refinancing and Consolidation

When Consolidation Makes More Sense

When Refinancing Is the Better Option

Private Student Loan Refinancing Rates

Fixed vs. Variable Rate Options

Why Interest Rates Aren’t the Only Thing to Consider

Federal Benefits You Might Lose When Refinancing

Term Length Considerations

Steps to Apply for Consolidation

Steps to Apply for Refinancing

The Takeaway

FAQ

Is it better to consolidate or refinance your student loans?

How much can refinancing save on student loan interest?

Can you consolidate private and federal student loans together?

Does consolidating or refinancing student loans hurt your credit?

How often can you refinance student loans?

Getting Private Student Loans Without a Cosigner

Purpose of Adding a Cosigner

Named a Best Private Student Loans Company by U.S. News & World Report.

Can You Get a Federal Student Loan Without a Cosigner?

Can You Get a Private Student Loan Without a Cosigner?

Pros of Having a Cosigner on a Private Student Loan

What is the Minimum Credit Score for a Student Loan?

Who Is Eligible for Student Loans That Don’t Require Cosigners?

Options If You Can’t Get a Student Loan Without a Cosigner?

Other Ways to Help Finance Your Education

Grants and Scholarships

Working While in School

The Takeaway

Named a Best Private Student Loans
Company by U.S. News & World Report.

Student Loan
Refinancing

Personal
Loans

Online
Investments