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

Consolidation Lenders

Name	Description
Cedar	Refinance your student loans to save money each month and/or pay off your loan(s) faster. Use the soft credit pull option to see your potential rate and monthly payment before filling out the application. There are no fees, no pre-payment penalties and a co-signer release is available. There are various repayment options, including fixed and variable rate loans from 5 to 20 years. Rates as low as 2.25% APR.**
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 2.19% APR.** Customers have saved an average of $3,036 per year*. Parents can also refinance loans they took on behalf of their children and lower their rate by up to 3.63%5 by refinancing their Federal PLUS loans. https://studentloans.citizensbank.com/erl
Citizens One, the national lending division of Citizens Bank https://studentloans.citizensbank.com/erl	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 2.19% APR.** Customers have saved an average of $3,036 per year*. Parents can also refinance loans they took on behalf of their children and lower their rate by up to 3.63%5 by refinancing their Federal PLUS loans. https://studentloans.citizensbank.com/erl
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: 3.49% - 8.36% APR Variable Rates: 2.01% - 8.88% APR
SoFi	Refinance with SoFi and you could save money each month, or pay off your loan faster. SoFi is the leading student loan refinancing provider and has helped borrowers save thousands of dollars thanks to flexible terms and low fixed or variable rates. Their application is fast, easy, and all online, and members have access to live customer support 7 days a week. SoFi has no hidden fees - No application or origination fees and no pre-payment penalties. And offers unique access to member benefits. SoFi members get career coaching, financial advice, and more-all at no cost.

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

• Cedar Education Lending Private Student Loan Consolidation
• Darien Rowayton Bank (DRB)
• DEAL Consolidation Loan
• Independent Community Bankers of America (ICBA)
• Navy Federal Credit Union
• SoFi Student Loan Refinancing
• Wells Fargo Private Consolidation Loan