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Private Student Loan Consolidation


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Private student loans cannot, in general, be consolidated with federal student loans. The low interest rates on federal consolidation loans are not available to private education loans. Nevertheless, there are several options for refinancing private education loans.

Since most private education loans do not compete on price, a private consolidation loan is merely replacing one or more private education loans with another. So the main benefit of such a consolidation is obtaining a single monthly payment. Also, since the consolidation resets the term of the loan, this may reduce the monthly payment (at a cost, of course, of increasing the total interest paid over the lifetime of the loan).

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However, since the interest rates on private student loans are based on your credit score, you may be able to get a lower interest rate through a private consolidation loan if your credit score has improved significantly since you first obtained the loan. For example, if you've graduated and now have a good job and have been building a good credit history, your credit score may have improved. If your credit score has increased by 50-100 points or more, you may be able to get a lower interest rate by consolidating your debt with another lender. You can also try talking to the current holder of your loans, to see if they'll reduce the interest rate on your loans rather than lose your loans to another lender.

Home Equity Loans

Private education loans tend to have interest rates that are in the same ballpark as home equity loans. If your private education loan has a variable interest rate, you might consider using a fixed rate home equity loan to pay off the private education loan, effectively locking in the interest rate.

Education Lenders

The following education lenders will consolidate private education loans. These are private consolidation programs, so the interest rates are dictated by the lender, not the government. There may be additional fees charged for originating these loans.

You should not consolidate your federal student loans together with your private education loans. They should be consolidated separately, as the federal consolidation loans offer superior benefits and lower interest rates for consolidating federal student loans.

When evaluating a private consolidation loan, ask whether the interest rate is fixed or variable, whether there are any fees, and whether there are prepayment penalties.

Featured Consolidation Providers

Name Description
Featured
Citizens Bank
Refinance your student loans and you could keep more of what you earn each month. In under 2 minutes, you can find out your personalized rate and savings. Rates as low as 2.90% APR.** Customers have saved an average of $3,252 per year*. Parents can also refinance loans they took on behalf of their children and lower their rate by up to 2.75%5 by refinancing their Federal PLUS loans.

Consolidation Lenders

Name Description
Credible Credible makes it quick and easy for borrowers to save on their student loans. Credible offers a multi-lender marketplace that enables borrowers to receive competitive refinancing offers from its vetted lenders. Users complete a single form, then receive and compare personalized offers from numerous lenders and choose which best serves their individual financial needs. Credible is fiercely independent, committed to delivering fair and unbiased solutions in student lending.

Citizens One, the national lending division of Citizens Bank Refinance your student loans and you could keep more of what you earn each month. In under 2 minutes, you can find out your personalized rate and savings. Rates as low as 2.90% APR.** Customers have saved an average of $3,252 per year*. Parents can also refinance loans they took on behalf of their children and lower their rate by up to 2.75%5 by refinancing their Federal PLUS loans.

LendKey Save tons of time and even more money by using LendKey to instantly compare student loan refinancing rates from 275+ community lenders across the US. Pick the rate and monthly payment that fits your budget and enjoy unmatched benefits like early cosigner release options, up to 18 months of unemployment protection, and more. LendKey is your loan servicer so neither you or your information will ever be handed off to a third party.
No fees of any kind and no obligation to accept - apply with confidence.

Average total savings of $16,600+

Average monthly payment reduction of $191

Fixed rates as low as 3.15% APR

Variable rates as low as 2.58% APR

Additional Lenders (listed alphabetically). Check the individual lender websites for programs and rates.


 
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