Frequently Asked Questions about Refinance Student Loan Debt

Here are the answers to the most commonly asked questions about refinancing student loan debt.

What does it mean to refinance student loan debt?

When you refinance student loan debt, you basically consolidate your student loans. Student loan consolidation typically involves paying off your current student loans by taking out a new loan, usually with a lower rate. You can refinance student loan debt and lower your interest rates and monthly payments considerably.

How do I apply to refinance student loan debt?

You can apply to refinance student loan debt by filling out our free online application. The application asks only for some basic contact information...you don't need to know the details of your current student loan portfolio. If you apply between the hours of 8 AM - 10 PM EST, we will contact you within fifteen minutes of receiving your application.

Am I eligible to refinance student loan debt?

You can refinance student loan debt if you have never previously consolidated your loans, are no longer enrolled in school more than half time, and your loans are in a repayment or grace period.

Are my loans eligible to refinance student loan debt through the federal program?

Many of our customers want to know if their loans qualify for free federal consolidation. This will depend on what type of loans you have, private or federal. All federal loans, such as Perkins, Stafford, and PLUS loans, are eligible for federal consolidation. If you have private loans, you will need to refinance student loan debt with a private consolidation loan.

How much will it cost to refinance student loan debt?

If you have federal loans, it won't cost you anything to refinance student loan debt. Federal student loan consolidation is a free program sponsored by the government. As long as you have federal loans, you can consolidate with no application or origination fees. Private consolidation loans have similar terms to any private loan, meaning you will have to pay certain fees and pass a credit check.

Do I need good credit to refinance student loan debt?

This depends on the type of consolidation loan for which you are applying. For federal student loan consolidation, there is no credit check involved. You do not have to have good credit or a co-signer to qualify for a federal consolidation loan. However, if you have private loans and apply for private consolidation, you will need to either pass a credit check or recruit a co-signer. If you refinance student loan debt with a co-signer, we offer an option whereby you may release your co-signer from the agreement after you have made a certain number of on-time payments.

Does the government actually issue my consolidation loan?

No, the federal government only sponsors the federal student loan consolidation program. The actual loans are still issued by private lenders. The government imposes caps on the interest rates of these loans, but there is no minimum interest rate.