The consolidation process for private student loans is called refinancing. You can refinance federal and private student loans with a private lender to get a lower fixed interest rate or better loan terms.
There’s no limit to the number of times you can refinance student loans.
Savvy student loan borrowers refinance more than once to take advantage of competitive variable interest rate loans. So long as you qualify, you can keep refinancing to get the best terms to repay your student loan debt.
Eligibility for student loan refinancing varies by lender, but you’ll typically need:
A blemish-free credit report.
A credit score in the high 600s.
Enough income to cover living expenses and the student loan payments.
If you don’t qualify on your own, consider refinancing with a cosigner. But before you do, make sure you understand the requirements for a cosigner release.
Do note, refinancing federal loans with a private lender causes them to lose protections and access to loan forgiveness programs.
Learn More: Student Loan Cosigner Rights