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).
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
Credible
Credible makes it quick and easy for borrowers to save on their personalized prequalified rates. 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 prequalified rates 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.
5.08% Fixed APR (with autopay)* and 5.28% Variable APR (with autopay) *Read rates and terms at Credible.com
Lenders Include
- Brazos
- Citizens
- EDvestinU
- ELFI
- MEFA
- RISLA
- INvestEd
- ISL Education Lending
- Nelnet Bank
Disclosure: Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation may impact the location and order in which the companies (and/or their products) are presented.
Consolidation Providers
Citizens – Undergraduate Student Loans
Citizens offers student loan options for undergrad, grad students and parents with competitive rates and flexible terms. You can even get a personalized rate quote in about 2 mins with no impact to your credit score!*
We offer these interest rate discounts, too:
- Loyalty Discount* of 0.25 percentage point interest rate discount if you have a qualifying account with Citizens.
- Automatic Payment Discount* of 0.25 percentage point interest rate discount.
Our Multi-Year Approval* option makes the whole process easier by providing qualified applicants with one easy application that could secure funding for the entire undergraduate program.
With Citizens Student Credit Builder*, you can start building credit sooner by making payments while you’re in school, lowering the total cost of your student loan and benefit from a lower rate.
Get on the right path to funding your education. With more than 40 years’ experience, we’re here to help guide you to the student loan that fits you best.
*https://www.citizensbank.com/promo/student.aspx
Loan
A Citizens Student Loan™ lets you choose from competitive rates, and repayment options that give you the freedom to pay back your loan on your schedule.
Limits
Annual Minimum: $1,000
Annual Maximum: Cost of education less financial aid (maximum aggregate limit: $150,000)
Rates
Fixed rates: 4.43%-12.57% APR (Lowest fixed rate is inclusive of all available discounts)*
Variable rates: 5.80%-13.95% APR (Lowest variable rate is inclusive of all available discounts)*
Fees and Terms
No application, origination, or disbursement fees. No prepayment penalty.
Multiple repayment options such as immediate or interest-only payments with Citizens Student Credit Builder* or deferred repayments.
Flexible terms available ranging from: 5, 10, 15-year options.
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented.
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
