Credible takeaways
- Consolidating multiple student loans into one simplifies repayment and helps you manage your finances more easily.
- Federal student loan consolidation doesn't necessarily lower your interest rate, but it locks in a fixed rate for the duration of the loan and allows for potential loan forgiveness with income-driven repayment plans.
- Refinancing lets you consolidate both federal and private student loans into one, but it's not the right move for everyone.
It's common to leave college with several student loans waiting to enter repayment as soon as you graduate or drop below full-time status. Maybe you had to borrow every year to cover tuition, or perhaps one loan wasn't enough to cover the full cost of attendance. Whatever the reason, juggling multiple payments on multiple loans can be overwhelming.
Consolidating those loans into a new loan with one payment is a simple way to lower your monthly costs and streamline the repayment process.
If you have federal student loans and private student loans, you can refinance both into a new private loan. But you should consider your options before deciding because you'll lose certain federal loan benefits, including income-driven repayment plans and eligibility for loan forgiveness.
How to consolidate student loans
There's an important distinction between student loan consolidation and refinancing.
When people say “student loan consolidation,” they're referring to federal student loan consolidation offered by the U.S. Department of Education through a Direct Consolidation Loan. This loan combines multiple federal student loans into one to simplify repayment or access specific repayment options and forgiveness programs.
Your credit score isn't a factor because you won't necessarily get a lower interest rate with consolidation. Instead, the interest rate is based on a weighted average of the rates you paid on the loans you want to consolidate.
Keep in mind:
Federal student loans have fixed interest rates determined by Congress each year. When students graduate, they could have four different federal student loans with four different interest rates.
On the other hand, private student loan lenders don't offer “consolidation” in the federal sense. Instead, they offer “refinancing.” When you refinance, the private lender you choose pays off one or more of your existing student loans — federal, private, or both — and issues you a new loan with a new interest rate and loan terms. Most people refinance their student loans with a private lender to get a lower rate, reduce their monthly payments, or shorten the loan term. Your interest rate on the new loan is based on your credit score and income.
Find out: How Much Do I Owe in Student Loans?
Federal student loan consolidation
The Department of Education offers federal student loan borrowers Direct Consolidation Loans at no cost, which can help make loan repayment more manageable. Most student loans, except private ones, are eligible for consolidation, including defaulted loans. You're eligible for consolidation after leaving school or dropping below half-time enrollment, and you can consolidate one, two, or all of your federal loans.
Applying for a consolidation loan takes about 30 minutes. You'll be asked to choose a new repayment plan: a fixed-payment or an income-driven repayment (IDR) plan.
Fixed repayment plans include the Standard Repayment Plan, Graduated Repayment Plan, and Extended Repayment Plans. These plans calculate your monthly payment based on how much you owe and the interest rate assigned to your new Direct Consolidation Loan.
IDR plans calculate your monthly payment based on your income and family size. They include the Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) plans. If consolidating a defaulted loan, you must pick an income-driven repayment plan.
According to Federal Student Aid, “After paying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan(s) forgiven.” You have to recertify your plan every year, even when there's no change to your income or family size.
When you consolidate federal student loans, the government determines the interest rate based on your combined loans. It rounds up the rate by 0.125 of a percentage point, so most borrowers don't receive a lower interest rate, but the rate stays the same for the remainder of the loan.
Federal student loan consolidation pros and cons
Pros
- Access to IDR forgiveness programs
- Single monthly payment
- Eligibility for different repayment plans
- Fixed interest rate
- Potentially lower monthly payment
Cons
- Longer repayment term means paying more interest over the life of the loan
- May not receive a lower interest rate
- Loss of access to federal repayment and forgiveness options
- 1.057% loan fee (before Oct. 1, 2025)
Federal student loan consolidation has several benefits, including having one loan payment and planning your budget in advance. You'll still have access to federal benefits, like income-driven repayment plans (IDR) and loan forgiveness programs, and you can switch from variable-rate loans to a fixed interest rate.
When you consolidate your federal student loans, you lose rate discounts and credit toward any payments you were making under an income-driven payment plan. Repayment starts 60 days after the loan is disbursed.
Besides Perkins Loans, which have a fixed interest rate of 5%, interest rates for federal student loans depend on the loan type you want. For the 2024-25 academic year (July 1, 2024 to July 1, 2025), federal interest rates are:
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Direct Subsidized and Unsubsidized Loans for undergraduates | | |
Direct Unsubsidized Loans for graduates | | |
Direct PLUS Loans for parents and graduates | | |
How to consolidate private student loans
When you have multiple private student loans — or multiple student loan lenders — and want to consolidate them into one monthly payment, you'll need to look into refinancing. This lets you combine the separate loan balances into a new loan with one monthly payment. Refinancing private loans can potentially get you a lower interest rate, too.
If you pick a longer term, your monthly payment will be lower, but you'll pay more interest over time. Refinancing your student loans can lower interest rates, especially if you have a good credit history or apply with a cosigner. Some private lenders allow cosigners to be released from the loan following a specific amount of on-time payments. A lower interest rate means lower monthly payments and overall loan costs.
You can compare rates from multiple private lenders to be sure you find the best fit for your financial needs.
“Before applying to refinance your student loans, I recommend checking your credit score to see where you stand. Most lenders look for a FICO score of at least 670 to qualify. If your credit needs work, consider applying with a cosigner who has strong credit and steady income, such as a spouse or a parent.”
— Renee Fleck, Student Loans Editor, Credible
LendKey: Best for Graduates With Excellent Credit
Loan Amount
$5,000 - $250,000
You can refinance with just an associate degree
Can earn a $200 bonus for referring friends and family
Lower your rate by a quarter of a percentage point with autopay
No fees for applications or loan origination
Some lenders may require membership in a credit union or local bank
Loan terms and qualifications vary by lender
Overview
LendKey is a marketplace that connects borrowers with more than 300 community banks and credit unions to find the best student loan refinancing options. Unlike most lenders, LendKey allows you to refinance your student loans while you're still in school, as long as you've earned at least an associate degree.
One of LendKey's biggest advantages is that it can help you compare multiple loan offers in one place. However, specific loan terms and eligibility requirements will vary by lender. Basic eligibility criteria include a minimum credit score of 680 and at least $5,000 in outstanding debt to refinance.
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
SoFi: Best for Member Perks
Loan Amount
$5,000 up to the full balance
Doesn’t charge loan prepayment, origination, application, or late payment fees
Borrowers can get complimentary financial planning advice, referral bonuses, and discounts
Offers a wide range of repayment plans
Must have at least $5,000 in loans to refinance
Unclear credit and income requirements
No cosigner release available
Overview
Undergraduate and graduate students can refinance their student loans with SoFi® if they meet eligibility requirements. You can prequalify for a loan in two minutes without affecting your credit score, and the lender offers both fixed and variable rates. Plus, SoFi offers unique benefits to its members, including access to networking events and financial advisers.
SoFi requires a minimum loan balance of $5,000 to refinance. You can add a cosigner to your application, and remove them after 24 consecutive on-time payments. You can find out your potential rate through prequalification, but the lender doesn't disclose its minimum credit score or income requirements.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 up to full outstanding balance
Eligibility
Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.
Earnest: Best for Fair Credit
Loan Amount
$5,000 to 500,000
Low minimum credit score requirement
Flexible options for structuring your loan payments
Option to skip a payment every six months
No origination or late payment fees
Cosigners are not accepted
Loans aren’t available to Nevada residents
Overview
Earnest student loan refinancing offers flexibility and accessibility, with loans available to borrowers with credit scores as low as 665. Borrowers can customize their repayment terms by setting their exact monthly payment or choosing a specific loan term, down to the number of months. If you opt for higher monthly payments you may qualify for Earnest's most competitive rates.
For borrowers facing financial challenges, Earnest offers a skip-a-payment option. After six months of on-time payments, you can skip one payment every 12 months without penalty. Keep in mind, though, that the skipped principal and interest charges will be distributed across your remaining payments, slightly increasing your monthly payment.
Minimum income
No minimum income requirement, but borrower must be employed, have a written job offer that starts within six months, or demonstrate consistent income.
Loan amounts
$5,000* minimum, up to $550,000
*Minimum loan amount for California residents is $10,000, and $10,001 for New Mexico residents.
Eligibility
Must be a U.S. citizen, permanent resident, DACA recipient, asylee, or hold an H-1B visa with a U.S. citizen cosigner. Must have debt from a Title IV-accredited school and be current on rent or mortgage payments. Loans must also be in good standing. California residents must refinance at least $10,000, and New Mexico residents must refinance at least $10,001.
Brazos: Best for Flexible Refinance Terms
Loan Amount
$10,000 - $400,000
Five loan terms available
Competitive rates
Cosigner release
No origination or application fees
Autopay discount of 0.25 percentage points
Only available to Texas residents
High minimum credit and income requirements
Bachelor’s degree required
Overview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner that can be released after 24 on-time consecutive payments.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
Yes, after 24 on-time payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher
Citizens: Best for Current Account Holders
Min. Credit Score
Does not disclose
Loan Amount
$10,000 - $750,000
Range of repayment options between 5 and 20 years
Offers prequalification with no impact on credit score
Offers rate discounts for existing customers and autopay
Cosigners not eligible for release until after 36 payments are made
Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
Minimum loan amounts are higher than some other lenders
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
EdvestinU: Best for Nonprofit Lender
Loan Amount
$7,500 - $200,000
You can refinance without a degree or while enrolled in school
Autopay rate discount available
Requires a higher minimum loan balance than some lenders
Cosigner release requires 2 years of on-time payments
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit.
Although the lender doesn't disclose the minimum credit score to quality, borrowers and cosigners must have an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school.
Minimum income
For loan balances below $100,000, the income requirement is $30,000; over $100,000, the income requirement is $50,000.
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in the U.S.
ISL Education Lending: Best for Current Students
Loan Amount
$5,000 to $300,000
No degree required
Certain borrowers can qualify for graduated repayment
No origination, prepayment, or late fees
Transparent credit and income requirements
Autopay discount of 0.25 percentage points
No variable rates offered
Caps on maximum loan amounts
Maine residents not currently eligible
Minimum loan amount of $10,000 for California residents
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
RISLA: Best for Income-Based Repayment
Loan Amount
$7,500 - $250,000
Offers income-based repayment
Generous payment relief options
You can refinance without a degree
Get a rate discount when you enroll in autopay
Fewer repayment terms to choose from
Does not offer variable rates
Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit lender offering student loan refinancing to borrowers across the U.S. You can refinance even if you didn't complete your degree, as long as you have at least $7,500 in student loan debt.
What makes RISLA unique is the flexibility it offers borrowers. If you're facing financial difficulties, RISLA provides income-based repayment options to help manage your payments. For added relief, you can access up to 24 months of forbearance, which is more than many lenders offer. If you return to graduate school, you can defer your payments for up to three years, giving you time to focus on your studies without worrying about loan payments.
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Cosigner release
After 24 months of on-time, consecutive payments (not available to residents of Colorado, Connecticut, Maine, Nevada, and Washington, D.C.)
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
ELFI: Best for High Balances
Loan Amount
$10,000 up to total refinance amount
Doesn’t charge application or origination fees
Borrowers are assigned to a student loan adviser
Student borrowers can refinance parent PLUS loans in their name
Clear credit and income requirements
Offers financial hardship forbearance of up to 12 months
Doesn’t offer any discounts
Need at least a bachelor’s degree to refinance
Doesn’t offer cosigner release
Charges fees for late and returned payments
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
INvestEd: Best for Forbearance
Loan Amount
$5,000 - $250,000
Refinancing available even for non-degree holders
Offers a one-quarter percentage point rate discount for autopay
Deferment available while in school, military service or under financial hardship
Will release cosigners after as few as 12 payments
Relatively low maximum refinance amount compared with some competitors
No refinancing available for international students
Parent loans cannot be refinanced in student’s name
Overview
INvestEd is a nonprofit based in Indiana that offers student loan refinancing to borrowers nationwide. It offers competitive rates and a discount for setting up autopay. INvestEd also allows cosigners to be released after 12 on-time payments, which is sooner than some other student loan refinancing lenders.
However, the most you can refinance through INvestEd is $250,000, less than what other lenders may allow. It also has strict credit and income requirements to qualify, or you'll need an eligible cosigner. INvestEd clearly defines its credit requirements before you apply.
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Loan Amount
$10,000 up to the total amount
You can refinance without having graduated
Doesn’t charge fee
Can prequalify to check your rate
Can’t release a cosigner
Doesn’t have any discounts
Can’t refinance parent student loans
Doesn’t offer variable-rate loans
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Why you can trust our Credible experts
The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.
Methodology
To determine the best student loan refinance lenders for borrowers, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.
- Repayment options: 30%
- Eligibility: 25%
- Interest rates: 20%
- Loan terms: 15%
- Customer support: 10%
While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.
Learn more about our methodology.
Private student loan refinancing pros and cons
If you have private student loans, refinancing could be beneficial if you can secure a lower interest rate on your refinance loan. You can check refinancing rates from multiple lenders without affecting your credit score. Lenders offer different rates, perks, and rate terms and have different eligibility requirements.
Pros
- Lower interest rates
- Lower monthly payment
- Flexible repayment terms
- Auto-pay and other interest rate discounts
- Single monthly payment
Cons
- Loss of access to federal benefits (when refinancing federal loans)
- Longer repayment terms mean higher loan cost
- Hard credit check
- Strict eligibility requirements
- Origination fees (depending on the lender)
Once you apply, your credit score will be dinged with a hard credit check, so be aware before applying. After processing the loan, your new lender will pay off your previous loan balances. Continue making payments on your existing loans until you receive confirmation that your new lender has paid them off.
Check Out: When Is the Best Time To Refinance Student Loans?
Student loan consolidation calculator
Whether you have federal or private student loans, use an online loan calculator to estimate your new payments and decide whether refinancing or consolidating are good options. A calculator can show you how your monthly payments, interest rate, and total repayment costs might change after you consolidate them. Toggle between different loan terms, like 10-, 15-, or 20-year options, to find the right fit.
FAQ
Can you consolidate federal and private student loans?
Open
No. You can't include private student loans in a federal loan consolidation. However, you can refinance your federal and private student loans into one private loan.
Can I get forgiveness if I consolidate my student loans?
Open
It depends on the type of federal loans you want to consolidate and the type of forgiveness you're hoping to receive, but you also must meet other eligibility requirements. When you refinance your federal student loans with a private loan lender, you'll lose access to forgiveness options.
How long does student loan consolidation take?
Open
Your federal student consolidation loan application can be processed in four to six weeks. Currently, FederalStudentAid.gov is experiencing some delays.
Meet the expert:
Angela Brown
Angela Brown is a student loan, personal finance, and real estate expert with over six years of experience. Her work has been featured at LendingTree, FinanceBuzz, and Yahoo Finance.
