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To refinance student loans, you need to refinance with a private lender. Student loan refinancing is one of the best student loan consolidation strategies. With student loan refinancing, you can lower your interest rate and pay off student loans faster. Compare the best student loan refinance lenders. Apply instantly.

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Make Lemonade Founder & CEO Zack Friedman is interviewed on CNN.

Zack Friedman is interviewed on CNN.

When you consolidate student loans with the federal government, all of your current federal student loans combine into a single student loan with one student loan interest rate.
This is advantageous because you may be managing multiple student loans, each with different interest rates, monthly due dates and student loans servicers.
If you consolidate student loans with the federal government, you receive a Direct Consolidation Loan.
The interest rate with a Direct Consolidation Loan will be equal to the weighted average interest rate of your current federal student loans, rounded to the nearest 1/8%.
It is important to note that when you consolidate federal student loans with the federal government, your interest rate will not decrease.
In fact, your interest may increase slightly, since the weighted average interest rate is rounded to the nearest 1/8%.
Also, it is important to note that you student loan payment period when you consolidate student loans can vary based on your total student loan balance. For example, you could have up tot 30 years to repay student loans.
It is possible, however, for your monthly payment to decline, even if your student loan interest rate does not.
For example, if the standard repayment period is 10 years, and now a Direct Consolidation Loan enables you to repay student loans in 30 years, your monthly payment would decline relative to your current student loan payment.
However, when you consolidate student loans and have a longer repayment period, that means more interest will accrue on your student loans.
How, if at all, can you lower your interest rate on your student loans?
ConsolidateStudent Loans With A Private Lender
When you consolidate student loans with a private lender, it is known as student loan refinancing.
To consolidate student loans with a private lender means that you are issued a new student loan with a lower interest rate and monthly payment.
This is a central difference compared to borrowers who consolidate student loans with the federal government.
When you consolidate student loans with a private student loan company, the new student loan that is issued is used to pay off the old student loans.
The result is a lower interest rate, lower monthly payment, new student loan servicer and one payment date.
While the notion to consolidate student loans helps you organize your student loans, be sure to differentiate between federal student loans and private student loans because the results can be markedly different.

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This free student loan prepayment calculator shows you how to pay off student loans faster. See how much time and money you can save with the best student loan prepayment calculator. Calculate monthly interest savings and total interest savings.

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This free student loan refinancing calculator helps you calculate quickly how much money you can save with student loan refinancing. Student Loan Refinance