Student Loan Consolidation and Refinancing

Refinancing Student Loan Debt

MakingCents-- Pay for College, Refinancing Student Loan Debt. Feel like you'd like a reset when it comes to your student loan debt? You can. Just like auto loans and mortgages, student loans can be refinanced. Refinancing gives you a chance to change the terms of your loan. That means you may lower your interest rate, lower your payments by increasing your loan's length, or both. If you have more than one loan, you can consolidate them all into one. So you'll just have one due date and one monthly payment.

Some lenders, like Navy Federal, will even let you refinance federal and private student loans together. Before you get started, check to see if there are benefits or protections you'd lose by refinancing. That way, you can decide what's most important to you-- the benefits, or a lower interest rate, or lower payment.

Here's some things to think about-- if your current loan has a variable interest rate and interest rates are rising, refinancing with a fixed-rate loan will mean your interest won't increase, so your payments will stay stable. Even if interest rates are falling, you may still be able to get a lower rate than what you're paying. If you're looking for some breathing room in your budget, or want only one loan payment, refinancing your student loan just might be the answer.

Navy Federal Credit Union. This is not a commitment to lend, and conditional/subject to the verification and accuracy of the information submitted to Navy Federal. This video is intended to provide general information and shouldn't be considered legal, tax, or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation. NFCU, copyright 2019, federally insured by NCUA.

Tip: See if one of your current lenders offers loan consolidation, since they’ll already have your information on file.

Step-by-Step Guide

Not sure where to start for consolidating your loans?

Here are the steps you should take to combine your loans.

Step 1: Gather all of your student loan information.

Loan type (subsidized, unsubsidized, private, etc.)
Current balance
Lender’s name and info
Account number
Current interest rate

Step 2: Gather your personal information.

Employer’s address
Employer’s phone number
Email address
Social Security Number
Driver’s license number
Date of birth
Two references (must live in the U.S., not reside with you and have known you for at least three years)

Step 3: Select a lender to work with.

Some lenders require a minimum loan balance of $7,500 to $15,000 to consolidate.

Step 4: Complete the consolidation loan application and choose your repayment plan.

It may be found online, or you can call for a paper application.

Step 5: Read and sign the loan documents.

Some lenders offer you the option to do this electronically.

Step 6: Maintain your payment schedule with your current lender.

Consolidation loan funding can take 6 to 10 weeks to process.

Step 7: Review the loan disclosure statement.

After your loan is disbursed, a disclosure statement will be sent to you. Review it to verify correct information and keep it on file until the loan is paid off.

Step-by-Step Guide

You might be interested in these Navy Federal products...