Navient does not consolidate private student loans. But Navient does refinance private student loans through its subsidiary, NaviRefi.
Let me explain the difference.
Consolidation typically refers to the process of consolidating one or more federal student loans into a Direct Consolidation Loan.
Consolidation rarely leads to a lower interest rate.
It does, however, often lead to qualifying for loan forgiveness programs (e.g., the Public Service Loan Forgiveness Program) and better repayment plans (e.g., income-driven repayment options).
The U.S. Department of Education allows borrowers to consolidate federal student loan debt for free at studentaid.gov.
Your credit score has no impact on your eligibility for student loan consolidation.
The Department of Education does not do a credit check before approving a consolidation application.
Refinancing typically refers to borrowers paying off their federal or private student loan debt.
Refinancing often leads to a lower interest rate and better student loan repayment terms.
Navient student loan refinancing rarely leads to more loan forgiveness options.
Navient, like other private lenders, will do a credit check before approving your application.
So if you have negative items on your credit report, you may want to get those removed from your report before you submit a student loan refinance application.
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