How It Works

Learn more about how to refinance student loan debt for federal borrowers. We'll explain who qualifies and what loans are eligible.

Refinance Student Loan Debt: Federal Consolidation

The type of consolidation you apply for will depend on the type of student loans you have. If you have federal student loans, you can take advantage of federal student loan consolidation, which is a free, government-sponsored program. Though federal consolidation loans are backed by the government, they are still issued by private lenders. Federal consolidation loans come with legally-imposed caps on interest rates, but there is no minimum amount that lenders have to charge. Thus, rates you receive when you refinance student loan debt will vary by lender.

Eligibility to Refinance Student Loan Debt

Not everyone can refinance student loan debt. In addition to having eligible loans, you must also meet the following requirements:

• No longer enrolled in school more than half time
• Loans are in repayment or grace period (grace periods usually last for six months after graduation)
• You have never previously consolidated your loans

Qualifying Federal Loans

If you have almost any type of federal loan, you will be eligible to refinance student loan debt. Eligible federal loans include:

• Subsidized or unsubsidized Stafford loans
• PLUS loans
• Grad PLUS loans
• Federal direct loans
• Perkins loans
• Supplemental Loans for Students (SLS)
• Federally Insured Student Loans (FISL)
• Health Professions Student Loans (HPSL)
• Health Education Assistance Loans (HEAL)
• Nursing Student Loans (NSL)