What is the difference between student loan refinancing and student loan consolidation?


In LendKey

Student loan consolidation is the Department of Education’s program where you combine multiple federal loans into one, resulting in a weighted average interest rate of your previous loans. Private student loans are not eligible for federal student loan consolidation. nnStudent loan refinancing is done through a private lender and can combine one or all of your private and/or federal student loans into one monthly payment. Terms of private student loan refinancing are determined by a credit-based application, meaning if you are approved, you could receive a new interest rate and new repayment term. This may help you save money on interest and/or change the length of your loan term to better fit your financial needs.

Please note that the information provided on this website is provided on a general basis and may not apply to your own specific individual needs, goals, financial position, experience, etc. LendKey does not guarantee that the information provided on any third-party website that LendKey offers a hyperlink to is up-to-date and accurate at the time you access it, and LendKey does not guarantee that information provided on such external websites (and this website) is best-suited for your particular circumstances. Therefore, you may want to consult with an expert (financial adviser, school financial aid office, etc.) before making financial decisions that may be discussed on this website.