When people want to manage their student loan debt post-graduation, many turn to student loan refinance or consolidation options.

Put simply, refinancing a student loan means that you take out a new loan and use the money to pay off the existing one–thus giving you new interest rates and terms.

Student loan consolidation, on the other hand, is combining two or more loans into one–giving you a single rate, monthly payment amount, and repayment term. 

But student loan refinance and consolidation options vary from lender to lender. Not all offer the same rates, terms, features, or perks. Therefore, it’s key to shop around. We’ve done some of the hard work for you. Check out the 6 best student loan refinance and consolidation companies below.

Raptor’s Pick for Best Refi Lender

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Reasons to Refinance or Consolidate Your Student Loans

Asking yourself “Should I consolidate my student loans?” How about “Should I refinance my student loans?” There are a number of reasons a person might turn to either option. Here are the main benefits.  

Refinancing could help you:

  • Lower your monthly payments
  • Raise monthly payments in order to pay off the loan faster
  • Get a lower interest rate

Consolidating could help you:

  • Have a single monthly payment
  • Get only one set of loan terms
  • Manage your loan more easily

Picking the Right Lender for Refinance or Consolidation

Some lenders offer both variable and fixed rates, others only have fixed. Some lenders will let you consolidate federal loans with other private loans, others won’t. As such, it’s important to know what kind of deal you’re looking for before you start your search. 

Plot out what your ideal refinance or consolidation plan is. Then you can browse with more focus and determine if a lender has programs that address your needs. Always look for the lowest rates and the most flexible plans. Also, don’t forget the perks like rate reductions for setting up autopay or unemployment protection.

Federal vs. Private Loan Refinancing and Consolidation

Of course, there isn’t just one type of student loan available. What if you have both private and federal student loans? Let’s go over the various combinations possible and what each entails. 

Refinance Options

  • Refinancing a Private Loan:  Refinancing a private loan with a private lender is relatively straightforward. You can refinance with the same company you took the original loan out with, or switch to a different one that has lower rates or better terms. 
  • Refinancing a Federal Loan: Believe it or not, you can’t refinance federal loans through a government program. Instead, you’ll have to refinance through a company that offers federal loan refinancing. BUT borrowers do lose access to federal benefits if they choose this option.

Consolidation Options

  • Private + Private: Private lenders can combine two private loans into one new one. 
  • Federal + Federal: The government can consolidate federal loans into one Direct Federal Consolidation loan. 
  • Private + Federal: Some companies will combine federal and private loans into one, BUT borrowers do lose access to federal benefits if they choose this option.

Making an Informed Decision

So are you considering student loan refinance? Or consolidation?Whatever you decide, be sure that you’ve fully explored all options first. When it comes to financial plans, it pays to really think it through before committing.