Federal Loan Consolidation
Federal Loan consolidation is offered by the government and allows you to pay off existing federal student loans and create a new loan at a fixed rate for the life of the loan. A consolidation loan can also extend the length of repayment, and may lower your monthly payment, depending on the amount(s) borrowed. The interest rate is the weighted average of the loans being consolidated, round up to the nearest 1/8 percent, capped at 8.25%. Longer repayment terms may increase the total repaid on the consolidated loan. Please contact your loan servicer after graduation for additional information.
Student Loan Refinancing
Student Loan refinancing is the process of obtaining a new loan at a new interest rate. Typically, you can refinance federal and private student loans, which involves paying off your old loans and obtaining a new one at a better repayment plan.
The websites below are good resources to use when considering student loan refinancing options:
Please keep in mind that if you refinance a federal student loan with a private lender, you could lose out on options like:
- Income-based repayment plans
- Loan forgiveness programs
- Deferment or forbearance under federal rules